Business Assurance - Co-shareholder

For the successful company whose success has seen the value of its shares increase over time the loss of a director and shareholder can be devastating.  To make matters worse if the shares of the director were to leave the company and be dispersed amongst relatives.  This could be the case if co-shareholder assurance is not put in place for all the directors. The wife of the deceased director, who would normally receive the shares, could nominate someone to the board who is not to the liking of the other directors.  She could sell the shares to a rival company.  She could do whatever she wished with the shares.

By putting in place a co-shareholder agreement it would mean that by correctly wording the document she would have to sell the shares back to the remaining directors for the market value of the shares. She would have a sum of money for the shares and the company would remain in the hands of the remaining directors.

Please call our offices for a discussion about co-shareholder cover.