Shareholder Protection
The value of protecting your company

If you want to know more about Shareholder Protection it is worth while reading the case study before continuing.

Case Study

Many Businesses have no idea how much they need shareholder protection. In this example we will imagine a business run by two partners. The business is an estate agency and is run by Bill and Ben. The business has been established for a number of years and is doing well. Both Bill and Ben are well known in the area and regarded as being the professional estate agents to go to. When Bill and Ben set the company up they did so on a 50/50 basis and share the responsibilities, running and profits equally. Both Bill and Ben are married with children.

One day Bill is killed in a traffic accident. Naturally Bill's family and Ben are devastated. From a business point of view Ben has lost a valuable partner in the business who contributed 50% to the running of the business. He will be sadly missed and the business will never be the same again nor will it generate the same kind of turnover.
For Bill's family things will obviously never be the same again. They have lost a husband, father and bread-winner. However, they still have a 50% share in the business which should give them some income. Bill's wife has no knowledge of the running of an estate agency business, not that she is able to contribute in any way as she has children to look after.

Ben now realises that not only has he lost a valuable business partner who made the business the success it is today, but he also has a new business partner who will contribute nothing to the running of the business, yet still take 50% of the profits at the end of each year. Ben's own income will now suffer too.

How It Works

Amid the time-consuming, complex business of running a company, scant attention is paid to what might happen if a shareholder dies, or becomes seriously ill.

In the interests of financial security, business stability, and continuity - particularly for private limited companies where there may only be a small number of principal shareholders - it is essential to provide a safety net following the loss of a shareholder:

• Shares may go to the deceased's family, which has no
     interest in the business and would prefer a cash sum
  
  
• The company or other shareholders will want to retain control
     by buying lost shares - but may not have the resources to do so
  
  
• The shares may be taken over by someone who does not    share the company's objectives - and may even be a competitor

Kane Finance can organise for your policies that allow for sufficient funds to be available in the event of the death or serious illness of a shareholder. This ensures that the company can continue to operate unhindered while the ongoing shareholder or their family receive fair compensation.

Please call us on (01) 6424204 or email us on info@kanefinance.ie - We are here to help.

  
  
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Kane Finance
39 Dame Street, Dublin 2
Lo-Call 1890-500-700
01 6424204