Keep your business functioning if the worst happens
One of the most serious events a business can suffer is the loss of a shareholder. Most businesses depend on their shareholders for leadership and direction – and the equity they provide.
On the death of any shareholder, the Articles of Association or Partnership Agreement should stipulate what happens to their share of the business. Usually, their beneficiaries are left to decide what to do with their holding and this could mean family members with little experience becoming involved with the business – or opting to sell it to someone with next to no interest in the enterprise.
Most surviving shareholders will want to buy the deceased’s share of the business and retain control of it – but they might have to wait for probate or be unable to raise sufficient funds.
Does this interest you? Have a look at our full leaflet below…