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Benefits Of Shareholder Protection

Provides financial stability, both for the business and for the family. This means that businesses don’t need to save up capital or dip into any savings to fund the purchase of the shares.

It can mean the remaining business owners keep control of their firm. Without a policy like this in place, the shareholder’s stake in the business could be inherited by an unwelcome beneficiary or end up being sold to a rival.

Having a policy in place means there can be a smooth transition for shares to change hands, keeping disruption within the business to a minimum. What’s more, it can also mean the beneficiaries have a clear idea of the amount they will receive when selling the shares back to the shareholders.
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