Shareholder Protection

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01204 238 500

The value of protecting your partnership

For many business owners/directors, running a company is a time consuming and complex affair. Attention is rarely paid to what might happen if a shareholder dies, or becomes seriously ill.

 

In the interests of financial security, business stability, and continuity - particularly for private limited companies where there may only be a small number of principal shareholders - it is essential to provide a safety net following the loss of a shareholder:

 

  • Shares may go to the deceased’s family, which has no interest in the business and would prefer a cash sum

  • The company or other shareholders will want to retain control by buying lost shares - but may not have the resources to do so

  • The shares may be taken over by someone who does not share the company’s objectives - and may even be a competitor

 

The correct Insurance Policy allows for sufficient funds to be available in the event of the death or serious illness of a shareholder. This ensures that the company can continue to operate unhindered while the ongoing shareholder or their family receive fair compensation.

It provides documentation to enable the surviving shareholders to receive the funds free of tax. 

 

Benefits for shareholders

 

In the event of a shareholder’s death or serious illness, one of the most important things to your business is to ensure continuity. Shareholder Protection sets out the procedures and policies to help ensure that you retain control, and have the necessary funds to do so:

  • Arrange for the most appropriate transfer of shares to surviving shareholders, or the company, at a fair commercial price

  • Set up insurance policies to provide the funds to purchase the shares

  • Avoid having to draw on funds set aside for other purposes

  • Prevent the sale of shares to hostile parties, or competitors

  • Documentation to enable all transactions to be made tax-efficiently

  • Ensure the dependents of the critically ill or deceased shareholder are financially secure

  • Maintain business stability and continuity

  • Retain confidence of employees and customers

 

HM Revenue and Customs and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

 

Contact us

Contact us using our on-line form below, email us directly at enquiries@holcombefinancialservices.co.uk or call us on 01204 238 500*

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Areas Of Advice

Local Independent Financial Advisers based in Ramsbottom, Bury, Lancashire, we cover all aspects of Financial Planning in Lancashire, Cheshire and Greater Manchester

Financial Advisor Bury, Financial Adviser Bury, Financial Adviser Bolton, Financial Adviser Greenmount, Financl Adviser Harwood,Financial Adviser Hawkshaw, Financial Adviser Holcombe Brook, Financial Adviser Rochdale, Financial Advisor Holcombe Brook, Financial Advisor Rawtenstall, Financial Advisor Tottington, Financial Advisors Bury, Financial Advisors Ramsbottom, Financial Advisors Rossendale, Inheritance Tax Advice Bury, Inheritance Tax Advice Ramsbottom, Inheritance Tax Advice Ramsbottom, Inheritance Tax Advice Rawtenstall, Investment Advice Hawkshaw, Investment Advice Ramsbottom, Investments Rochdale, Mortgage Advice Bury, Mortgage Bolton, Mortgages Bury, Mortgage adviser Greenmount, Pensions Advice Bury, Pensions Adviser Bury, IFA Bury, IFA Ramsbottom, IFA Greenmount, IFA Holcombe Brook, IFA Bolton, IFA Haslingden, IFA Rawtenstall, IFA Tottington, IFA Blackburn, IFA Rochdale, IFA Hawkshaw, IFA Bamford, IFA Harwood, IFA Rossendale, IFA Harwood , Pension advice Ramsbottom, Pensions adviser Ramsbottom, Pensions advisor Ramsbottom, Pensions Advice Rochdale, Pensions Bamford, Pensions advice Bolton, IFA Bury, IFA Ramsbottom, IFA Greenmount, IFA Holcombe Brook, IFA Bolton, IFA Haslingden, IFA Rawtenstall, IFA Blackburn, IFA Rochdale, IFA Hawkshaw, IFA Bamford, IFA Harwood, IFA Rossendale, IFA Harwood , Pension advice Ramsbottom, Pensions adviser Ramsbottom, Pensions advisor Ramsbottom  Pensions Harwood, Pensions Ramsbottom, Retirement Planning Ramsbottom,Final Salary Pension advice Bury, Defined Benefit Pension Advice Bury, Final Salary Pension Advice Ramsbottom, Defined Benefit Pension advice Ramsbottom, Final Salary Pension Transfer Advice Bury, Final Salary Pension Transfer Advice Ramsbottom,  Final Salary Pension Transfer Advice Bolton, Final Salary Pension Transfer Advice Rochdale, Final Salary Pension Transfer Advice Blackburn, Final Salary Pension Transfer Advice Manchester.

The information on this website is for use of residents of the United Kingdom only.  No representations are made as to whether the information is applicable or available in any other country which may have access to it.

Holcombe Financial Services is a trading name of Holcombe Wealth Management which is authorised and regulated by the Financial Conduct Authority

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