Shareholder & Partnership Agreement

Take steps to safeguard the future of your business

How would you feel if control of your company fell into the wrong hands – or a co-owner’s shares were sold to a competitor? You can prevent this from happening by taking out Shareholder & Partnership Protection, an insurance policy that’s set up in line with the way your business is structured.

What is Shareholder & Partnership Protection?

Shareholder & Partnership Protection gives the shareholders of a limited company, or the partners of a partnership or LLP (limited liability partnership), the ability to buy a deceased or seriously ill co-owner’s share of the business from them or their estate.

You can tailor your policy to cover a range of scenarios, from death and terminal illness to permanent disability and critical illness. If a business has more than two owners, the cover is usually written in trust. If there are only two owners – or the owners are closely related – it may be better to take out policies on a ‘life of another’ basis.

Why you should consider it

  • Shareholder & Partnership Protection ensures that control of a business remains with the surviving owners, rather than passing to someone who is unwilling or unable to run it. It also prevents the sale of shares to a competitor.
  • This type of cover saves you having to raise finance to buy out a deceased or seriously ill co-owner – and gives you peace of mind that you’ll have the funds to make the purchase without delay.
  • A lot of business owners aren’t aware of Shareholder & Partnership Protection, but many businesses can benefit from having this type of cover in place.

How we can help

With Shareholder & Partnership Protection, it’s not just a question of setting up an insurance policy. At Macbeth we can advise you on the right approach for your business, looking at whether your cover should be written in trust or if you should consider taking out ‘life of another’ policies. As an independent adviser, we have access to the entire insurance market – so we can find the best overall solution that gives you the cover you need at the most competitive price.

“We approached Macbeth because we needed general advice relating to our financial arrangements and to understand the options available. We have been impressed with Macbeth because they have tailored their advice to our precise business and personal needs. We found their detailed knowledge and clear explanations of the various products invaluable in assessing exactly what we needed to move forward with confidence.”

Mark Caldicott
White Hart Associates (London) Ltd

 

 

 

 

 

Macbeth Financial Services Ltd is an Appointed Representative of 2plan wealth management Ltd. 2plan wealth management Ltd is authorised and regulated by the Financial Conduct Authority. It is entered on the Financial Services Register (www.fca.org.uk) under reference 461598  |  Registered in England & Wales No. 8542176  |  Registered Office: 4 Commerce Park, Brunel Road, Theale, Reading, Berkshire, RG7 4AB

Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk