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Protect Your Share of the Business

What is Share Transfer Protection?

Hand ShakeFor owners of businesses where there is more than one owner, one of the biggest concerns is how to make sure the business can change hands if something happens to one of the shareholders or partners.

For example, two shareholders own a business together and one of them became too ill to be able to continue.  How do the owners make sure that one owner can carry on with the business, and the other gets to withdraw their capital?

The solution is to put in place a plan that is triggered if a disaster happens.  This is how it works.




To guarantee the transfer of shares or business interest at a pre-determined value or valuation method from one owner, to the remaining owner/s.  This ensures that a fair and equitable price is paid for the business interest and enables surviving owners to carry on with the business under their control.

Key Element:

Have an agreement signed by all parties recognising what is to happen, and when, by whom and at what cost.

How to fund it:

An insurance policy on the lives of the owners concerned is put in place, in order that a sum of money equal to the value of the shares, or as close as practical, is made available on death or disablement of a shareholder to provide cash to effect the agreement. The insurance will pay for the ownership transfer.


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