Director Share Protection

What is Director Share Protection? What will it cost?

What happens if a Director, who is also a shareholder in your business, dies?

Not only do you lose their experience and expertise but what happens to their shares? - Could you afford to buy their shares from their beneficiaries?

Those shares could be inherited by someone who has no knowledge or interest in your business. They could become a majority shareholder and be in a position to sell the company over your head.

What can you do to protect the company?

Each Director takes out their own life assurance policy to cover a specified amount. A written legal agreement is put in place which

a) gives the remaining Directors the right to buy the shares and

b) gives the inheriting spouse the right to sell their shares to the Directors.

This is known as a cross-option agreement.

Is this expensive to put in place?

Not necessarily. The monthly premiums are based on normal life assurance rates. For example, a 40 year old non-smoking male with no medical conditions could pay as little as £9.98 per month* for a £100,000 of cover over 10 years. You will also need to pay your Solicitor to set up the legal agreement. We can recommend one who is experienced in these matters if required.

What next?

Complete our enquiry form and one of our experienced and friendly advisers will contact you to discuss your requirements and offer you a no obligation competitive quote.