INSURANCE FOR BUSINESS | EMPLOYEE PROTECTION

Shareholder’s Protection

The death or permanent incapacity of a shareholder or partner can alter the balance of power within your businesses and can create financial difficulties for the surviving shareholders, partners and their dependants.

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Why choose us?

Creating Appropriate Solutions

We help to the best possible solutions to suit your family and business

Tailored Recommendations

Developing the right balance benefiting shareholder and family.

Dedicated Claims Support

Providing support to settle claims quickly and efficiently.

For When The Unexpected Happens

Shareholder/Partnership protection is designed to ensure that the aftermath of a shareholders death is as smooth and stress free as possible, paying out a lump sum to the remaining shareholders/partners to be able to buy back the shares of the deceased.

The unexpected can happen and the impact on your business could be damaging and permanent. As well as ensuring the stability and longevity of the business these policies also offer the peace of mind that fellow stakeholders and family members will be looked after should the worst happen.

For When The Unexpected Happens

Shareholder/Partnership protection is designed to ensure that the aftermath of a shareholders death is as smooth and stress free as possible, paying out a lump sum to the remaining shareholders/partners to be able to buy back the shares of the deceased.

The unexpected can happen and the impact on your business could be damaging and permanent. As well as ensuring the stability and longevity of the business these policies also offer the peace of mind that fellow stakeholders and family members will be looked after should the worst happen.

Protect Your Business Against The Loss Of A Shareholder

Like most financially responsible people you’ve probably written a personal will. No doubt you did this to make sure that your estate goes to your chosen beneficiaries in the event of your death.

But what about your business? What would happen if you, or one of your co-shareholders, died or had to retire through ill heath?

Have you established a process that will ensure that the business shares could be bought by the remaining shareholders for a fair price?

If a business loses a key shareholding director, it’s fair to assume that it’s unlikely to have adequate cash flow to be able to buy those shares. Borrowing funds from the bank is one solution, but that might not be straightforward or quick.

Being unable to buy these shares or having no agreement in place to manage this situation, could lead to expensive legal action, loss of control of the business and financial difficulties for the dependants.

Stay in control of your business. Losing a business partner would be bad enough. But without the funds to buy their shares, you could find someone else in the driving seat.

Boardroom confusion can lead to conflict in decision making as the surviving owners and the deceased’s family may have very different ideas about the future of the business. Other potential problems include:

  • new business owners could take control of the day-to-day running of the business.
  • the new business owner could be a competitor or completely unsuitable for the business.
  • the deceased owner’s family are willing to share the shares but the surviving owners could have trouble raising the finances.

Solutions

The cover we recommend depends on ther business set-up:

  • Share protection is for limited companies
  • Partnership protection is for partnerships and limited liability partnerships.

Each shareholder or partner takes out a plan on their own life which is written in trust for the other business owners. Each shareholder or partner signs a cross option agreement, giving the surviving business owners the option to buy the deceased owners shareholding and the estate option to sell them.

This process helps ensure business continuity (the business carries on trading with minimal disruption). The remaining partners use the money paid under the claim to buy the shares from, usually, the family of the deceased and the business continues.

Tax Advantages

A company share purchase is paid by the company and is usually free of Corporation Tax. Premiums will not be subject to Income Tax or National Insurance for shareholders.

The unexpected can happen and the impact on your business could be damaging and permanent.

As well as ensuring the stability and longevity of the business these policies also offer the peace of mind that fellow stakeholders and family members will be looked after should the worst happen.

Employees are a company’s greatest asset. They are your competitive advantage and without them your company could be at serious risk.

For more information and a free quote from a dedicated Protection Consultant, please call Stacey on 01270 758057 or click on link below

Has your business made provision by way of a shareholder agreement and shareholder protection cover to protect the interests of the remaining shareholders in the event of death of one the shareholders? If not then the consequences can be devastating for the business that you have all worked so hard to grow and make successful…

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R.K. Henshall © 2021

R K Henshall & Co Ltd are Independent Intermediaries and are authorised and regulated by the Financial Conduct Authority. Directors: J.R. Henshall B.A.(Hons) ACII Cert CII (FS), A.J.Simpson ACII, T.R.Dredge DIP CII, A.Brown FCCA. Director/Company Secretary R.K. Henshall ACII. Registered No. 1285024

R K Henshall are very proud to support Lupus UK. Lupus UK is a charity very close to our hearts. Unfortunately, Nita Davies who had been a stalwart of our company from it’s very beginning lost her battle against this terrible illness in 2013. Lupus UK is the only National Charity which supports people with the immune system illness. (Registered charity nos. 1051610, SC039682) Click here to read more about Lupus UK.