Who will control my business?
Losing a partner, member or shareholding director can have a major impact on the success of any business. But it’s not just about the loss of profit a business could suffer. Could your business continue if one of the owners were to pass away or suffer a critical illness? Who would take their place? Not only in performing their day to-day duties, but in deciding how your business is run in the future.
Security for your business
Imagine if one of your co-owners were to pass away. Not only could your business suffer financially because they’re no longer there, but what would happen to their share of the business? You could be forced to work with someone new, e.g. one of their family members. That person may have no knowledge of the business and no interest in it either. But because they now own a share, they have just as much say as your co-owner had before they passed away. If your co-owner suffers a critical illness this creates even more uncertainty. Will they be able to return to work and if so, when? Will they want to sell their share of the business, and who will buy it? By having partnership and shareholder protection in place all of these problems can be avoided. Business protection insurance gives you and your co-owners the security of being able to keep the ownership of the business in the hands of those who have built it. It also makes sure an owner who becomes ill, or the family of an owner who passes away, receives a fair value for their share of the business.
Have you considered what might happen if you or one of the owners of your business becomes critically ill or passes away?
- They or their family might want to sell their share of the business. This could be to a competitor or some other unsuitable buyer
- They could force the winding up of the business
- Perhaps their family may wish to become involved in the business, which at best could be disruptive or at worst unacceptable to the other owners
- The other owners may have to use funds they intended for other purposes to buy the share of the stricken owner
Contact the PIB specialist team on 01352 721300 so we can understand your business’ requirements and bespoke a solution that will ensure the future success and value of your company is protected.