Business protection
Partnership & Shareholder Protection
Why It Matters
Have you ever thought about what would happen to your business if a partner or shareholder died or was diagnosed with a serious illness?
Without the right protection in place, their shares could pass to a spouse, family member or even end up being sold to someone you would never have chosen to work with – in the worst case, even a competitor. That can create uncertainty, stress and real risk to the future of the business, at the same time as everyone is dealing with a difficult personal situation.
If there is no agreement or protection in place, the default position will usually depend on your articles of association and any legal agreements. In many cases, the deceased person’s shares may end up with their spouse or estate, who might not want to be involved in running the business and may prefer to sell.
Shareholder and Partnership Protection is designed to provide the money needed for the remaining owners to buy those shares. This helps you:
Keep control of the business in the hands of the people who are actively running it
Provide fair financial value to the outgoing owner or their family
Reduce the risk of shares being sold to someone who is not aligned with your plans for the business
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What if a partner becomes seriously ill?
A similar problem can arise if a partner or shareholder suffers a critical illness and can no longer, or no longer wants to, be involved in the business. They may wish to sell their shares and step away.
In that moment, you need to ask: would there be enough cash in the business to buy them out, without putting strain on your day-to-day operations? Often, the answer is no.
A well-structured shareholder or partnership protection policy can provide a lump sum if a partner or shareholder dies or suffers a specified critical illness. That lump sum can be used to buy their shares and allow the business to continue running as smoothly as possible.
How We Help
At Your Protection Matters, we help business owners put the right plans in place so that if the worst happens, everyone knows what should happen next. We take time to understand:
Your business structure
Who owns what
Any existing legal agreements
Your longer-term plans for the business
From there, we work with you and your other professional advisers to make sure the cover is set up correctly and aligns with your legal agreements – explained in clear, straightforward terms.
If you are a business partner or shareholder and would like to talk through your options, you can get in touch with us to discuss what might be right for your business.
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Ongoing Support
As your business changes, so should your protection. We’re here to help review and update your arrangements to ensure they continue to support your business and its owners.
By submitting this form, you agree that we may use your details to respond to your enquiry. Please read our Just in Time Privacy Statement for more information.