Shareholder Protection

Shareholder and Partnership Protection helps you retain control of your business following the death or incapacitation of a shareholder or partner.

Following the loss of a shareholder or partner, Shareholder Protection insurance provides you capital to buy back shares from the deceased’s beneficiary. You retain control of your business and the deceased’s spouse is provided for financially.

No Obligation Consultation
Business meeting
Shareholder chairs

Does my business need Shareholder or Partnership Protection Cover?

Following the death or incapacitation of a shareholder or partner, the deceased’s shares typically pass to a benefactor, usually a spouse, as decreed in a Will.

If management is weakened following the loss of a shareholder or partner, decision making may become ineffectual, resulting in business stagnation, or worse collapse.

Without the correct governance documentation, remaining shareholders may be powerless to prevent the benefactor from selling the shares to an unwanted outside investor.

Assuming the benefactor agrees to sell the shares to the remaining shareholders, a “fair” valuation for the stock is required before the purchase. Reaching a “fair” valuation can be fraught, especially if a spouse is grieving. Thereafter, capital is required to purchase stock from the benefactor.

Following a successful claim, Shareholder and or Partnership Cover provides you capital to buy-back stock and retain control of your company.

No Obligation Consultation

Benefit of a Shareholder and Partner Protection Policy

The cost of purchasing shares reflects your business valuation and number of shares.

Without liquidity to buy-back shares, remaining shareholders may require external finance to purchase the stock.

An external investor could provide capital to purchase the shares, but this dilutes existing shareholders, weakening their control over the business.

Commercial loans offer liquidity, but debt financing incurs prohibitive interest rates.

Shareholder Protection provides a tax-free cash lump sum following a successful claim which can be used to purchase shares.

You retain control of your company in a cost-effective manner.

Do I need Shareholder or Partnership Protection Insurance?

Shareholder Protection is recommended for limited companies as cover is arranged for individual shareholders’ lives.

Partnership Protection is recommended for Limited Liability Partnerships as cover is arranged for the business partners.

No Obligation Consultation
Meeting room

Cross-Option Agreement

Shareholder protection is arranged in conjunction with a Cross-Option agreement.

Cross-Option agreements provide shareholders a legal “right to buy” shares from the deceased’s benefactor helping them retain control of their company.

Cross-Option Agreements confirm the methodology to value shares. This avoids uncomfortable negotiations with a spouse vis-à-vis a “fair value” for shares during a time of heightened emotions, i.e. following the death of a shareholder/spouse.

Contact us today for more information or to apply for our shareholder protection policies and help protect your business’s future.

No Obligation Consultation
Business meeting
Shareholders

Have You Considered Adding Critical Illness?

If you or a partner, shareholder or Key Person suffered a heart attack, stroke or cancer and survived, but required an extended period of sick leave, they and your business could benefit from Critical Illness.

Following diagnosis and successful claim, Critical Illness cover would pay a cash lump sum to the policy holder helping alleviate any undue financial pressure.

Your No Obligation Consultation

Should you wish to learn how Key Man / Key Person Insurance can benefit your company, please:

  • Complete the short form below
  • Email us at protect@fatgreen.co.uk
  • Call on 0333 050 0088

We look forward to hearing from you.

No Obligation Consultation

What Our Clients Say

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    nick green

    peter@fatgreen.co.uk

    0333 050 0088

    07866 751 415

    Connect with Peter on LinkedIn

    Peter Blacklock
    Peter is one of the UK’s leading Insurance and business advisory specialists with a track record of building and selling Insurance businesses.

    He advises boards and investors in the capacity of CEO, C.A.P.O.W. Consulting, drawing on three decades of experience. Peter’s knowledge of Insurance is unrivalled having had extensive exposure to personal, family and business protection insurance.

    Peter is passionate about the North of England and a life-long Sunderland fan and sports coach.

    nick green

    Anny Lian

    anny@fatgreen.co.uk

    0333 050 0088

    07908 355 781

    Connect with Anny on LinkedIn

    Anny was an Investment Banker and CFO of a high-growth company working across Asia, America and now Yorkshire.

    With a background in Finance, Anny understands the importance of protecting investments whilst ensuring company finances are insured against life’s unforeseen challenges.

    As an active member of the UK SME sector, Anny accepts invitations to encourage and mentor aspiring future female business leaders.

    nick green

    Nick Green

    nick@fatgreen.co.uk

    0333 050 0088

    07985 219 763

    Connect with Nick on LinkedIn

    At heart, Nick is an entrepreneur who has co-founded two companies, including Fatgreen. Fatgreen arrange Business Protection insurance solutions for SMEs, Private Equity and Venture Capital Investors.

    Prior to co-founding Fatgreen, Nick spent two decades in Executive Search, providing recruitment solutions for Investment Banks, Private Equity firms and their portfolio companies. Having dealt with people all his career, he understands the intrinsic link between creating financial value and people.

    Nick appreciates how hard it is to appoint exceptional talent, hence the need to reward staff through enhanced benefits such as Relevant Life Insurance. As life is uncertain, Nick is passionate about protecting companies from the financial costs associated with losing a Shareholder or Key Person.

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