How's your Business Will ?

Like most financially responsible people you’ve probably written a personal will. No doubt you did this to make sure that your estate goes to your chosen beneficiaries in the event of your death, rather than be decided by the intestacy laws.

But what about your business? What would happen if you or one of your co-shareholders died or had to retire through ill health?

Do you have a business will? Have you established a process that will ensure that the business shares could be bought by the remaining shareholders for a fair price?

If not, it might be worth thinking about what the consequences could be for you, your family or your business. Your Articles of Association may well dictate how shares are dealt with on death or retirement. They may also set out how your business will be valued in these circumstances.

However if a business has just lost a key shareholding director, it’s fair to assume that it’s unlikely to have enough cash flow to be able to buy those shares. Borrowing funds from the bank is one solution, but in the current economic climate, how easy would that be?

Being unable to buy these shares, or having no agreement in place to manage this situation, could lead to expensive legal action, loss of control of the business and financial difficulties for the dependants.

The Money Helper are specialists in creating business wills. We look at your current arrangements and make sure that they allow for proper control of the business for the remaining shareholders at the same time as providing the funding that guarantees a fair value for the outgoing shareholder or his or her beneficiaries.

We can provide the legal documentation you need, or work with your existing accountants or solicitors.