Shareholder Protection

Do you have a plan in place if a main shareholder or co-owner of your business is forced to leave your business because of illness, disability or death? It’s important to think about the future of your business now, so if the unexpected happens, you know that you can preserve the value of your shares and maintain control of your business.

Here’s why you should consider shareholder protection, such as a buy/sell agreement, for your business:

• Buy out shares: In the event of a shareholder suffering from illness, disability or death, this cover will buy out their shares (payable to them or their estate). This means that you can feel confident that they can provide for themselves and their family during a stressful and uncertain time.
• Security: The insurance company will give you the money to buy out the shares from the previous owner. You don’t need to worry about selling any of your own assets or being out of pocket. Your shares will retain their value.
• Stay in control: You stay in control of who manages and owns your business. This cover protects your business from gaining shareholders that you might not want – such as the previous owner’s family – who may not have the skills or the desire to step into your business.
• Prevent closure: Shareholder protection like a buy/sell agreement can protect your business from a forced sale to pay out the deceased estate.

To see if you could be doing things better, flick us an email: info@rsl.net.nz or call Tim on 0275 734 064