The death of a major shareholder can often leave the remaining shareholder(s) dealing with a new owner, often the owners spouse. This might not be ideal especially if the deceased shareholder had been a policy and decision-maker.
Usually the remaining shareholders wish to buy out the deceased share, giving a fair market-value and retaining control of their business. But where will the purchase money come from and what if the new shareholder does not wish to sell.
The solution, which must be prepared before the event is corporate share-protection.
For a free review of your corporate share-protection requirements, Contact Us or use the Enquiry Form.
Corporate share protection provides the necessary purchase money, in the event of a major shareholders demise placed in the hands of the surviving shareholders. Properly structured the arrangement will also provide an option agreement that allows either party to ensure that a sale takes place. This means that if the surviving shareholders wish to buy the shares, they cannot be prevented from doing so. Similarly, the new owner has the option to force the purchase, to release their fair-market cash value.
To protect yourself against the loss of control of your business, Contact Us or use the Enquiry Form.