Corporate shareholder cover: The advantages for your business

Cover can prove particularly important for retailers, who are often small to medium-sized businesses with a limited number of shareholders

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Brand Central

Corporate shareholder protection for retailers is a type of life assurance that is designed to protect the interests of shareholders and the business itself in the event of the death or serious illness of a shareholder. This can be particularly important for retailers, as they are often small to medium-sized businesses with a limited number of shareholders.

One of the most common forms of corporate shareholder protection is share buyback insurance. This type of insurance policy is taken out by the company on the life of each shareholder.

In the event of a shareholder’s death, the insurance company pays out a lump sum to the company, which can then be used to buy back the deceased shareholder’s shares from their estate. This ensures that the surviving shareholders retain control of the business and that the family of the deceased shareholder receives a fair price for their shares. This can also be arranged for businesses that are structured as a partnership.

Which type of shareholder protection is best for a particular retailer will depend on several factors, such as the size of the business, the number of shareholders, and the financial situation of the business. It is important to seek professional advice to ensure that the right arrangements are put in place.

RetailWealth has the expertise to advise you on the best solution for you business. You can contact RetailWealth’s experienced team based at Ballymount, Dublin 12 via:

Phone: +353 1 458 4327

Email: info@retailwealth.ie

Web: www.retailwealth.ie

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