Business Succession

Also known as Director Share Purchase / Partnership Protection

If one of the owners of a business becomes critically ill or dies, they might have to sell their share of the business and this could be to a competitor or some other unsuitable buyer who  could possibly force the winding up of the business. Perhaps the owner’s family may wish to become involved in the business, which may be at best disruptive or at worst unacceptable to the other members of the business.

It is vitally important therefore that should such an event happen, plans are in place for the remaining owners to be able to buy the critically ill or deceased colleague’s share of the business. A separate legal agreement known as a cross option agreement would need to be established.