Business intestacy risk

Just like failing to make a Will, having no business share succession arrangements may create a stressful 'business intestacy' situation.

Too few businesses have made sure that share succession, on death or critical illness, is dealt with how they would want. This can leave family members unprotected, too.

Your responsibility as a shareholder

As a shareholder your focus is on working with other shareholders to make your business successful. It’s important to consider who you would want to own the shares of your business when you die. Inheriting shares can come with significant responsibilities, and not everyone is cut out to take these on. Most people want to pass their assets on to their family, but this may not be the best thing for the business.

Deciding who will continue to run the business can have an impact on day to day operations, workforce morale and indeed the value of the business. If you were to die, would your beneficiaries share the same business goals? They might have to work with partners who have little or no interest in the business, which could decrease in value as a result. Your beneficiaries would then own shares with no ready buyers.

We can discuss solutions with you that would give your fellow shareholders the means to buy your shares, while also allowing your beneficiaries to realise the market value of your shareholding.

Even if you’ve already planned for share succession, you might find a review of your arrangements helpful.

Got a question?

If you would like to speak to us about a particular issue or wish to find out more about the specialist advice services we offer for business owners, please get in touch.