Shareholder protection
Ensuring a business shareholder’s security during unexpected events
Shareholder Protection Insurance establishes a binding agreement between shareholders, ensuring that shares stay within the business.
When a shareholder passes away, their shares typically become part of their estate and are inherited by their family, giving the family ownership of the shares.
This policy enables the remaining shareholders to buy back the shares from the family, benefiting everyone involved. The business retains control of the shares, while the family receives financial compensation equal to the value of the shares.
Benefits
Business continuity
Ensures the smooth transfer of shares, avoiding potential disruptions to operations and decision-making.
Clarity and certainty
Establishes a clear, legally binding agreement, reducing potential disputes among shareholders and beneficiaries.
Control retention
Prevents unwanted third parties, from becoming involved in the business.
Preservation of share value
Protects the business’s financial health and stability, ensuring that the shares are not undervalued during an unexpected event.
Financial security for families
Provides the shareholder’s family with the monetary value of the shares.
Peace of mind
Offers reassurance to shareholders, their families, and employees that plans are in place for unexpected events.
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