So the turnover is up, profits are rising and the order book is looking healthy. It is at just this point that one of the three shareholding Directors of the business suddenly dies!
A tragedy for the deceased Director’s family, but a serious knockback for the business too. The two remaining Directors as well as losing a friend, have a serious hole to fill in the business. At this point, the deceased Directors wife calls to speak to one of the remaining two Directors. She really needs the cash value for her late husband’s shares in the business. The two remaining Directors find themselves without their fellow Director, pressures on the business, and the wife of their former partner asking for money which they are going to really struggle to find. Serious problems for all concerned heaped on top of a tragedy. So could this situation have been avoided?
Yes. Had they arranged Director Share Protection, then there would have been money for the two Directors to pay the spouse the money she wants, and they would have control of the business.
We at Richmond House pride ourselves on our expertise, and would be delighted to talk through your Company’s situation.
Neil Dainton Dip PFS