PHONE: 09 373 0700

FAX: 09 373 0706

EMAIL: info@mont.co.nz

 

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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.

 

  • 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.

The Buy Sell agreement should include: