Partnership & Shareholder Protection

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Losing a partner, member or shareholding director can have a major impact on the success of your business. It’s not just the loss in profits, how would you retain control if that person’s shares end up with someone outside your business? You could be forced to work with someone who has no knowledge of the business or no interest in it. A critical illness creates even more uncertainty. Will they be able to return to work? If they don’t return, they may want to sell their share of the business. Could you afford to buy it?

Questions to ask if your business is a limited company / partnership / LLP:

If one of the shareholders / partners / members dies unexpectedly:

  • Is there anyone else who could run the business?
  • Are any business loans in place which are secured against the family home?
  • How would the family cope financially?
  • Can the surviving shareholders/partners/members buy the deceased’s share?
  • Would a competitor want to buy into the business?
  • Would the beneficiaries get a fair price?
  • Do the beneficiaries want to join the business?
  • Would the other shareholders/partners/members want them?
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Questions to ask if you’re a sole trader:

If you were to die unexpectedly:

  • Is there anyone else who could run the business?
  • What would this cost?
  • Are any business loans in place which are secured against your family home?
  • How would your family cope financially?
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What is Partnership or Shareholder Protection?

Partner & Shareholder protection provides funds in the event of a death or critical illness of a business partner or director. The loss of an owner or partner can have a destabilising effect on any company. The funds released give you the ability to buy back any shares and pay back any business or Director’s loans that the estate might demand be repaid. Partner & Shareholder Protection allows you to keep control of your business and ensures the deceased’s family is fairly compensated.

Benefits of Partner & Shareholder Protection

  • Keep control of your business
  • Provides a lump sum to buy shares and give the family a fair settlement.
  • Prevents shares being sold outside of the business
  • Money available to pay off any outstanding business debts
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Business Continuity Planning

Business continuity planning plays a key part in protecting the stability of your business. It ensures your business continues to trade even if the unexpected happens. Partner & Shareholder Protection is just one area of business protection. You might also want to consider Key Person Protection to protect your business against the loss of a key person. There’s also business debt protection, and tax efficient Relevant Life Cover which makes staff feel more appreciated so they’re more likely to stay with your company for longer.

Find out more. Download our business continuity guide.

Business Continuity Guide
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Why choose The Finance Roome?

We understand the complexities of business continuity planning and depending upon whether you’re a sole trader, limited company or partnership, our business protection team can advise you on the most cost-effective options for your business. We listen to your specific needs before searching hundreds of business protection products to find one that matches the individual requirements of your business.

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Don’t just take our word for it.

Our biggest critics are always our clients. Unbiased and unrelenting, they are the easiest way to find out what a business is really like to work with. Find out what ours are saying about us!

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