Shareholder protection

The sudden loss of a shareholder can disrupt a company, but Shareholder Protection will minimise business interruption.

Many companies will have adopted a clause that gives the other shareholders the first opportunity to buy the shares of the critically ill or deceased, in order to avoid the possibility of the shares being sold, or passed onto, a third party not approved of by the other shareholders. 

But problems can still arise over the valuation of the shareholding and the raising of sufficient funds to undertake the share purchase.

The solution to these problems is a Shareholder Protection Arrangement backed by appropriate life insurance policies.