Shareholder Protection

This applies to smaller companies with no more than a handful of directors/shareholders.

Keyman Insurance

Are there any individuals on whom your business is heavily reliant.

Corporate

Who do you choose to set up and run the scheme and discuss the benefits with your employees?

Employee Benefits

Advice for employers who wish to set up ancillary benefits for their staff.

Shareholder Protection

The question directors of small companies should consider is what happens if one of the major shareholders dies or becomes critically ill.

It is a fact of life that most businesses would not wish to have to share their dividends with somebody who does not work in the business. This may well be the case if a director/shareholder dies and their spouse inherits their share of the business. Equally, the widow/widower may well feel uncomfortable with this situation.

It is therefore often the case that both parties would prefer the surviving business owners to inherit the shares with the deceased’s beneficiaries pushing in a capital sum in return. This can be achieved by a life assurance but if the arrangement is not written correctly there can be serious consequences in terms of tax and business continuity.

Who would inherit the deceased’s shares?
Would surviving business owners prefer to own the shares?
Would the beneficiaries prefer cash in lieu of the shares?

Keyman Insurance

Many firms don’t consider what may happen if a key individual dies or becomes critically ill.

This key individual may well be a major shareholder or director but not necessarily.

What companies should consider is if they have an individual with whom certain business partners identify.

This could not only be key suppliers or key customers but could involve an individual with a particularly good relationship with a bank or other investors in the company, or could be a person with particular technical knowledge vital to the business.

If you have identified such people then life cover or critical illness could be taken out to supply a capital injection to the business to help fund it through difficult times until a suitable replacement is found, or to prevent lenders in the business including suppliers for closing on any debt.

How would the death of a key employee affect your relationship with

1.   Suppliers
2.   Customers
3.   Bank finance
4.   Investors

Corporate

We believe we are different in this area because we treat each employee as an individual and don’t subscribe to the industry norm of providing group meetings and treating all employees simply as Mr / Mrs Average. Instead we prefer to hold one to one meetings as we recognise that each employee’s situation is unique to them.

Our experience is that employees find this approach extremely beneficial and value the benefits offered by their employer more highly as a result.

A Group Pension Scheme
A Group Life Assurance scheme
Shareholder Protection
Keyman Insurance

Employee Benefits

Who do you choose to set up and run the scheme and discuss the benefits with your employees?

We believe we are different in this area because we treat each employee as an individual and don’t subscribe to the industry norm of providing group meetings and treating all employees simply as Mr / Mrs Average. Instead we prefer to hold one to one meetings as we recognise that each employee’s situation is unique to them.

Our experience is that employees find this approach extremely beneficial and value the benefits offered by their employer more highly as a result.

A Group Pension scheme
A Group Life Assurance scheme
A Group Income Protection scheme

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