Ryan Oates
Posted By Ryan Oates
05/09/2022

Financial Wellbeing – Shareholder Protection – Saving our Client c£4000 Per Year in Premiums


 

AT A GLANCE
CHALLENGES
  • Reviewing Shareholder Agreement and Shareholder Protection
BENEFITS
  • Ensuring legal and financial mechanisms in place for business protection
  • Ensuring the arrangement was tax efficient
OUTCOME
  • Obtained competitive premiums
  • Provided client with wide range of solutions 
  • Reduced proposed premium for the client over 5 years

 

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OVERVIEW

Two shareholders of a large manufacturer required their Shareholder Agreement and Shareholder Protection to be reviewed.  They wanted to ensure that there was a legal and financial mechanism in place so that, in the event one of the shareholders passed away, the surviving shareholder would have the funds and ability to purchase the shares from the deceased shareholders estate (family). 

Since the original Shareholder Protection was introduced, the company had grown substantially and was worth considerably more. 

OBJECTIVES

  • Source, recommend and implement 2 new Shareholder Protection policies representing the current business value (and shareholdings) to replace the existing inadequate policies 
  • Work with a solicitor and accountant, to ensure the arrangement was set up tax efficiently and provided the necessary legal mechanisms

HOW WE HELPED

  • We undertook an open market exercise to obtain competitive premiums
  • Provided the client with a range of solutions to meet their objectives
  • Set up policies on a nil commission basis, substantially reducing the proposed premium for the client over 5 years
  • Assisted the Shareholders with their medical underwriting and business financial underwriting to help get the policies offered and on risk
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