“Whether you are a Shareholding Director or Partner of a business practice you face the same dilemma……
Would your practice stay afloat if anything was to happen to one of your co-owner’s.”

The very structure of a business can be put at risk if the shareholding director of a company or a partner within a partnership dies or suffers a serious illness. In the event of this happening you need to ensure the assets of the company are protected and there are adequate resources to ensure the maintenance and continuation of the business.

The most effective way to do this, and protect the interests of the family of the deceased, is to use a life insurance policy along with a written legal agreement, known as a Share Protection Agreement or a Partnership Protection Agreement, that ensures that all parties know and agree with the exchange of the cash benefit of the policy with the ownership rights of the deceased estate.

Either a simple Buy-Sell Agreement can be used, which has the advantage of direct action but can have distinct tax implications, or a Cross-Option Agreement can be used, which only provides the parties with options not an obligation but has certain tax advantages.

Your Corporate Financial Consultant, here at Premier Medical UK, will be able to give help, advice and guidance on this along with working out the valuation of each partner or shareholders stake. In doing this we are happy working with your own advisers (company lawyers and accountants) to ensure an equitable arrangement and alignment with any formal Partnership Agreements or Incorporation Documents.

So if you don’t have such an arrangement in place or would like to review your existing arrangement, in terms of a cost/benefit/requirement analysis, or you have any concerns about the position of your business should such an event happen please ring us on 0845-6756749 or clicking here now and we will analyse everything then research the whole market to find the most appropriate solution.