If you are trading as a limited company we would strongly advise the use of a Shareholder Agreement, particularly one that protects the company and its assets in the event of the death of a shareholder. This is sometimes known as a Crossover Agreement.
This enables the company, on the death of a shareholder, to buy back from that person’s estate, the shares. Sometimes this incorporates the use of an insurance policy. The principle reason for having this type of agreement is that this allows the remaining shareholders, who may have invested life savings, time and effort in a business, to maintain control of the day to day running without the interference from third parties who may have inherited shares but have no interest in the business itself.
In the event of illness we also recommend Directors or Partners in a business should consider a Lasting Power of Attorney. This can be used to appoint an accountant, solicitor or another Director to be able to stand in the shoes of the incapacitated Director this is essential where your banking mandate may require two signatures for cheques.
Please contact Martin Gaffney on 0113 282 7988 for further information.