If a business loses a director/shareholder then it is likely to have lost key expertise. This can have serious consequences, not just for those left behind, but for the future of the business.
In addition to this, shares held by directors in family businesses are often inherited by beneficiaries who have not historically been involved with the company and are unlikely to have the relevant skills and expertise needed to take the company forward.
Directors’ share protection can provide a lump sum in the event of the death or critical illness of a director/shareholder. This sum can be used to offset the costs of replacing lost expertise and to assist the remaining directors to “buy out” the deceased’s beneficiaries.
At Milsted Langdon Financial Services, our directors’ share protection experts can advise you on the best solution for your business, ensuring that the death of a key director/shareholder need not spell the end of the company.