Share Purchase Insurance

What is Share Purchase Insurance?

Have any questions about how this can apply to you?
  • If your business loses an owner through death, disability or major illness you usually need to address:

  • control of the business for the remaining owners; and

  • certainty for the departing owner (or their estate) for the sale of their shareholding.

 

 

We recommend suitable cover to provide adequate funding for a properly constituted Buy Sell agreement among shareholders.

 

The remaining owners need to retain control and the departing owner needs to know what value they will get for their shares.

 

The Buy Sell agreement should include:

  • An agreed value for the shares fully funded by insurance to ensure a certain and predictable outcome and a "win - win" solution for all parties;

 

  • "Agreed value" clauses in buy sell agreements.  These can be set annually when accounts done and will lessen potential arguments over the "correct" value of the shares;

 

  • A mandatory rather than optional agreement to buy the shares in the event of death, total and permanent disability or major trauma; and 

 

  • Ownership of such policies by an independent Trustee or Trustees.

PHONE: 09 373 0700

FAX: 09 373 0706

EMAIL: info@mont.co.nz

 

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