Shareholder Protection

Losing a major shareholder or partner can cause serious problems. A shareholder’s family could end up with a share of the business, and in the case of a partnership, the partnership will be automatically dissolved unless an agreement exists to the contrary.

In these circumstances, it may be in the best interest of the business for the remaining business owner(s) to buy the share in the business. However, most companies don’t plan for such an eventuality.

Share purchase protection covers one nominated individual, who can be a partner or a shareholder. It is a pre-arranged scheme to keep your business going if a crucial staff member is lost. It offers financial protection for your business if a shareholder or partner dies or is diagnosed with a critical illness.

The benefit should relate to the value of the business interest held by the person insured, which should be based on a professional valuation. So, regular revaluations should be carried out and the level of cover changed accordingly.

Shareholder protection policies are often set up in trust where each partner would request the protection policy be set up on their life under trust for the benefit of the other partners.

In such a case the other partners are likely to be appointed as trustees. In the event of a claim, the other partners as the beneficiaries of the trust would then have available the money to buy the seriously ill or deceased partner’s share of the company.


Shares transfer

Cover to enable the most appropriate transfer of shares to surviving shareholders, or the company, at a fair commercial price

Business continuity advice

On a suitable agreement to ensure the company remains stable in the event of a shareholder’s death or serious illness

Critical illness and death cover

To ensure the dependants of the critically ill or deceased shareholder are financially secure

Benefits to shareholders

  • Sets-up insurance policies to provide the funds to purchase the shares
  • Avoids having to draw on funds set aside for other purposes
  • Prevents the sale of shares to hostile parties, or competitors
  • Provides documentation to enable all transactions to be made tax-efficiently
  • Retain confidence of employees and customers


  • We will quickly establish a holistic understanding of your business and its culture.
  • We will offer impartial advice on your group benefits strategy, to outline our intentions and abilities and to allow you the time to take on board all considerations.
  • We will work only with trusted providers and partners.
  • We will communicate with regular feedback and information on performance.

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