What is shareholder cover?
Shareholder cover, also known as partnership or shareholder protection insurance, is a facility designed to protect a business in the event of the death of a key shareholder or director.Unexpected events like these can cause significant financial troubles for the deceased’s business and family – especially for small or medium-sized businesses that may only have a small number of shareholders.
Selecting the Right Cover with Pareto
- Pareto’s dedicated corporate team is committed to tracking down the policy that’s right for your business.
- We can help you protect against the fallout from losing a key shareholder, ensuring sufficient capital is raised to buy out the shares of the deceased enabling you to maintain control of the business.
- Similarly, we can also ensure that the family of the shareholder is financially looked after in this eventuality, freeing them from fiscal worries and giving them much-needed time to come to terms with their loss.
How Pareto can Help Your Business Following the Loss of a Key Shareholder
- Arranging for an appropriate transfer of shares to remaining shareholders or the company at large
- Putting insurance policies in place to generate the capital necessary to purchase the outstanding shares
- Prevent shares from being sold to competitors or other undesirable parties
- Provide documentation to enhance the tax efficiency of all transactions.
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