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Shareholder Protection

What is shareholder protection? This is where a small business operates as a private company and there are directors and shareholders.

The value of pensions and the income they produce can fall as well as rise, you may get back less than you invested.

SHAREHOLDER PROTECTION

Shareholder protection is similar to partnership protection, but there is no compulsion on the part of the surviving shareholders to buy the deceased shareholder’s shares from their estate. Even where they would like to, the cash is not always readily available.

THE PROBLEM IS TWO FOLD:

Possible financial hardship for the deceased’s family – there being no ready market for the shares (especially if the deceased held a minority holding) or restrictions laid down in the transferability of the shares in the company’s Memorandum and Articles of Association.

 

The surviving shareholders find themselves sharing control of their business with an outsider who may know nothing about the business.

 

WHAT IS THE SOLUTION?

As with partnership protection, a life assurance plan would enable the surviving shareholders to purchase the shares from the deceased shareholder’s estate.

Again, the type of plan and length of term will vary according to the company. Term assurance could be used to protect shareholders against death before retirement. Convertible term or whole of life plans could be considered if the shareholder wanted further protection after they have retired.

Again, the type of plan and length of term will vary according to the company. Term assurance could be used to protect shareholders against death before retirement. Convertible term or whole of life plans could be considered if the shareholder wanted further protection after they have retired.

By adjusting the shareholders remuneration, equalisation of contributions can be achieved if they are all working for the company. What is the tax situation?

The tax situation for shareholder protection is similar to the tax situation for partnership protection.

A particular general need can sometimes be met by alternative solutions. For example, family protection to provide cash in the event of death could be provided by term assurance or whole of life assurance. Protection against ill health could be provided by an accident and sickness plan or permanent health insurance.

ADVICE

We are pleased to offer consultation and advice in this complicated area and have strong relationships with specialist legal professionals who can assist with any required contracts and business trusts.

As we start to emerge from lockdown and restrictions begin to ease from today, Monday 12th April, the team from Torbay Financial Services would like to wish the whole of the incredible small business community and those reopening the best of luck and a safe journey back to recovery.

#reopening
#welcome
#keepingitlocal
#babbacombestyle
#lockdowneasing
#april12th
#mondaythoughts
#stmarychurchprecinct
#torquay
#torbayboost
#swbest
#babbacombe
...

As we start to emerge from lockdown and restrictions begin to ease from today, Monday 12th April, the team from Torbay Financial Services would like to wish the whole  of the incredible small business community and those reopening the best of luck and a safe journey back to recovery. 

#reopening
#welcome
#keepingitlocal
#babbacombestyle
#lockdowneasing
#april12th
#mondaythoughts
#stmarychurchprecinct
#torquay
#torbayboost
#swbest
#babbacombe

3 days ago

Torbay Financial Services

See you in the morning!

The office has been repainted, cleaned and new plants bought 🪴 all we need now is to say 'hello and welcome back'

#reopening
#welcome
#morning
#goodtobeback
#keepingitlocal
#stmarychurchprecinct
#stmarychurchlive
#april
#babbacombestyle
#torbay
#torbaycouncil
#torbayboost
#planning
...

See you in the morning!

The office has been repainted, cleaned and new plants bought 🪴 all we need now is to say hello and welcome back 

#reopening 
#welcome
#morning
#goodtobeback 
#keepingitlocal 
#stmarychurchprecinct 
#stmarychurchlive
#april 
#babbacombestyle 
#torbay 
#torbaycouncil 
#torbayboost
#planning

Happy Retirement? 😊

Please click on the link to read 7 retirement questions we can help you with.... or see our website details in the bio.

1. When can I afford to retire?
2. How much income will I need in retirement?
3. What assets should I draw down first?
4. How should I invest?
5. What additional risks will I face?
6. How often should I review my plans?
7. What are my other financial planning needs?

extranet.quilterfp.co.uk/downloads/library/MKT---0376---Seven-Retirement-Questions-QFP---0421.pdf

#retirement
#planning
#questions
#answers
#financialadvice
#stmarychurchprecinct
#localbusiness
#keepingitlocal
#quilter
#invest
#swbest
#torbayboost
...

Happy Retirement? 😊

Please click on the link to read 7 retirement questions we can help you with.... or see our website details in the bio.

1. When can I afford to retire?
2. How much income will I need in retirement?
3. What assets should I draw down first?
4. How should I invest?
5. What additional risks will I face?
6. How often should I review my plans?
7. What are my other financial planning needs?

https://extranet.quilterfp.co.uk/downloads/library/MKT---0376---Seven-Retirement-Questions-QFP---0421.pdf

#retirement 
#planning
#questions
#answers
#financialadvice
#stmarychurchprecinct
#localbusiness
#keepingitlocal
#quilter
#invest
#swbest
#torbayboost

Welcome back to our St Marychurch office -
12th April 2021
...

Office revamp 😃 fresh lick of paint for the office reopening🖌 ...

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66 Fore Street
St Marychurch, Torquay
Devon TQ1 4LX

e: paul@torbayfinancialservices.co.uk
t: 01803 411460   m: 07891 614559

By clicking on links from this site you are departing from the regulatory site of Torbay Financial Services.

Neither Torbay Financial Services nor Quilter Financial Planning Solutions Limited is responsible for the accuracy of the information contained within the linked site.

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