WHAT HAPPENS WHEN A SHAREHOLDER IN YOUR COMPANY DIES?
Let’s say your business partner dies suddenly and your company is without a succession plan. Your partner’s business interest will pass on to their estate. Which, nine times out of ten, usually means their family.
Your deceased partner may be their family’s main provider. In the event of their death, the family will then face a new financial future.
One that will be full of pressures. Which then means they’ll have one of two choices to make.
I NEED MORE INFO!
The first involves taking on your partner’s shares themselves. But in most cases, the family won’t have the training, background, or aptitude for your company.
You didn’t choose to go into business with your deceased partner’s next of kin and usually it’s not a good fit.
Alternatively, the family could realise the value of the business and look to sell the stake.
But will you have the money to make a fair offer?
If you can’t, the family will likely sell to someone who can. Which, in most cases, will be your local competitor.
And now you risk losing control of your company.
Such a nightmare is what Shareholder Protection Insurance has been designed to prevent.
Because it ensures you have the finances to buy your deceased partner’s share. You regain control of the business and take the appropriate measures for its future.
This not only safeguards your company. But it benefits your shareholder’s family, too.
Now, should the worst happen, they know they’ll be able to find a ready buyer.
WHY CHOOSE VMIS
Sometimes the word ‘expert’ gets thrown around too easily. But at Velvet Mortgage and Insure Services, we pride ourselves on the expert advice we give to company directors.
This means you don’t have to worry about being lumped with a provider that won’t cover you properly. Or waste time you don’t have searching for hidden meanings in the small print.
We understand how busy you are. And we also know you want the right insurance for your family. With brokers who don’t use deceptive jargon and make your policy difficult to understand.
Velvet Mortgage and Insure Services offer an expert and tailored insurance service that’s available at your fingertips. You get an improved level of cover across the board. Together with aftercare and peace of mind that your family will be provided for.
