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Shareholder Protection

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The loss of a shareholder in an owner-managed organisation can have seriously painful consequences. That's because, in the event of their death, their shares will pass to their estate.

Quite often, the recipient of those shares doesn't want to be involved in the running of the business and would rather sell the shares to a third party. Obviously, the existing directors would rather the shares didn't leave the company but have little control over this.

Unless they have shareholder protection that is.

With this insurance, the shareholders of an owner-managed business come to an agreement where they will buy out a director's share if he or she dies. And the benefits to the business are clear:

  • The current directors retain control of the business
  • A fair value is paid for the shares
  • Costly loans are avoided
  • The relatives of the deceased director are paid quickly

    • Aspira is experienced in arranging this type of cover, and can help you arrive at the most suitable solution for your business.