Planning for the Future
Uncertainty in the light of continuing Brexit negotiations is keeping some UK businesses awake at night. And whilst talks are out of the hands of business owners, the one aspect that can be controlled is forward planning for the future.
But the reality is many business owners simply never consider, in any detail at least, that they might fall seriously ill or perhaps even die.
They will work hard, fully committed to pushing their business forward and creating an organisation which can support their lifestyle and provide long term security for themselves, their family and their employees. But they often fail to put in place protective mechanisms to deal with serious illness or death.
But what if the worst happens? What if another major shareholder fell ill or died? What would happen then? Have they thought through the sequence of events that follow if the worst was to happen – in most cases, no they haven’t.
This raises many more questions including:-
- Who would acquire the shares on death?
- Who will exercise voting rights in respect of the deceased’s shares? Would any surviving co owner be able to continue running the business as they would want?
- How would the deceased’s family extract value from the business? Any salary may stop, will the family continue to receive an income stream by way of dividends? Can the capital value in the shares be realised?
All of these problems can be avoided if business owners plan ahead and put in place the necessary structures to deal with these issues.
Fortunately there are solutions available to avoid these situations such as appropriate will planning and putting in place powers of attorney, establishing a shareholders agreement, and cross option agreements amongst a whole host of others solutions that are available.
But planning is key…so to discuss any of the above in more detail, or how we can help you plan ahead, contact Paul Horton on 0116 257 4460 or Virginia Harvey on 0115 945 3734 or another member of the private capital team.
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