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 also known as a Crossover Agreement.
This enables the company, on the death of a shareholder, to buy the shares from the deceased’s estate. Sometimes this incorporates the use of an insurance policy. The reason for having this type of agreement is that this allows the remaining shareholders, 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 recommend Directors or Partners in a business consider a Lasting Power of Attorney. This could appoint an accountant, solicitor or another Director to stand in the shoes of an 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.