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When a partner /shareholder dies or becomes permanently disabled, a fund can be created via an insurance contract for the other partners or shareholders to purchase the shares from the departing person.
Before considering shareholder protection for your business there are a few things to consider.
1. Implementation of the strategy
2. Funding to ensure ownership of the business remains in the right hands e.g. What is the outcome you want if one of your partners or shareholders died or became totally and permanently disabled.
3. What do you intend to happen to the funds of a life policy on the death or disablement of a partner or shareholder?
4. A Buy/Sell Agreement or an Insurance Trust?
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