As a business owner, your business might be your greatest asset and your greatest responsibility. So, keeping your business interests protected for the long-term benefit of yourself and your family, should be a big priority.
Running a business with a colleague, either as shareholders in a limited company, or as partners, presents many challenges. Lots of people go into business with colleagues they know, like and trust. But the pressures of running a business can put a strain on even the strongest friendships. But what if something happens to one of you? Will that spell the end of the business? What will your family do then?
A Shareholders Agreement, or Partnership Agreement, is an essential tool, that provides you and your business partner with a vital safety net. It’s one of the Four Pillars of Wisdom for a resilient business.
WHAT IT ACHIEVES
This gives you the peace of mind of knowing that you have thought about the big risks that can affect your business and your working relationship and have put sensible protections in place to manage those risks.
From an estate planning perspective, it gives your colleagues the option to buy out your share of the business for a fair market price if something happens to you. This can be backed up with a suitable insurance policy that provides the purchase price for your share should disaster strike.
That way, the business can continue to trade uninterrupted, while you and your family have the security of having your capital in the business converted into cash.
A Shareholders Agreement or Partnership Agreement costs £795.