Shareholder Protection

Have you considered what would happen to the shares of a shareholder if something unexpected happened? Shareholder Protection is a vital tool to provide you with a lump sum in the event of death or critical illness and this would enable your company to buy the shares of the relevant business co-owner.

Without Shareholder Protection an unexpected event could be devastating for the business and its structure. If a co-owner or shareholder were to die, the shares could go into the deceased estate and commonly be inherited by the spouse (or partner). This may cause a number of serious problems, such as:

  • Raising Capital to acquire shares if the spouse decides to sell
  • Ensuring the spouse receives a fair price of the shares
  • The Introduction of an unsuitable buyer of the shares
  • Avoidance of the shares falling to the deceased estate
  • Unfavourable prospects of the spouse keeping the shares
  • Any impact on the confidence and productivity of employees
  • Attraction from competitors and the poaching of key staff
Protection for your business

Partnership Protection

Partnership Protection is essential for most companies that are structured as a partnership. If anything should happen to a partner (death or serious illness) then your insurance cover would pay out a lump sum to assist the remaining partner(s). You could then purchase the deceased's share of the business. Without protection, raising capital to fund such an acquisition could be disruptive and problematic.

If a partner were to die, the share of the business would generally fall into the deceased estate and may be inherited by the spouse (or partner). This:

  • May be unsuitable for the surviving business partner(s);
  • May not provide for the deceased's spouse or family financially if they decided to sell their share.

The main reason to acquire this cover is to protect the ongoing operations of your company, and to look after the deceased's family by ensuring they receive a fair price for their proportion of the business.

A Safety Net to Keep You In Control

How Can We Help You?

We are a team of specialist advisors who are authorised to provide regulated advice. We will demonstrate the best available options available to your company after taking into account all of your circumstances. We are impartial and will search the market extensively to ensure that we find you the best value cover for your needs.

  • Extensive market searches to provide the most competitive terms
  • In-depth knowledge to find you the best available cover
  • Impartial advice from experienced advisors
  • Professional service, and with no obligation
First Point Financial Management is a trading style of Lifetime Financial Management Ltd. Lifetime Financial Management is authorised and regulated by the Financial Conduct Authority, registered number 448415. Lifetime Financial Management Ltd is registered in England and Wales No. 3652194. Directors: P Merrigan, U Ozturk and C Last. Registered Office: 12-14 Upper Marlborough Road, St Albans, Herts AL1 3UR.
You can check the Financial Services Register by visiting the FCA's website, or by contacting the FCA on 0800 111 6768.