What is it?
Life assurance owned by a private company to buy the shares of the company owned by a deceased shareholder.
What Problem Does It Solve?
When a shareholder dies, their shares are usually passed to their family. Family members rarely want the shares but usually want the cash equivalent of their value.
The surviving shareholders are usually dependent on the business for their livelihoods and so do not want people unfamiliar with it to have control over how it is run.
A shareholder protection arrangement can give both parties what they want and uncouple the financial security of the deceased’s family from the firm.
What Should I Do Next?
Please contact us to discuss shareholder protection schemes.