Seminar: The importance of getting shareholder protection right

Would you want your next business partner to be your current business partner’s widow, widower or their children?

It may not immediately seem a priority on the tick list for success but guarding against the sudden loss or incapacity of a senior leader is crucial to any business’ future.

Picture the scene: Your long-time business partner has died and, with no shareholder protection policy in place, their family has taken on day-to-day responsibilities.

Would you want to work with your ex-partner’s widow, children or someone they seek to appoint to act on their behalf, who could assume greater control of your venture and even sell it to a competitor?

Are you willing to apply such risk to an endeavour you have spent years nurturing?

Without the appropriate governing documents in place, such as a shareholder agreement, articles of association - including your requirements - up-to-date wills aligned with your requirements, an option agreement (a double and single option where appropriate) and shareholder protection policies, together with the appropriate trusts, your business can quickly be exposed to substantial risks.

Three of the North East’s leading advisory firms are running a joint seminar where business owners and directors can learn about the importance of shareholder protection and explain more about how to avoid serious disruption and potential loss in value of your business.

Speakers will include:

• Ian Wilkinson, Managing Director of Newcastle and Darlington-based financial planning and wealth management firm Perspective (North East) Ltd

• Louise Miller, Partner in law firm Weightmans LLP’s wills, trusts and estates team, and Duncan Reid, Partner in their Corporate team

• Rachel Warriner, Associate Director in RMT Accountants & Business Advisers’ Corporate Tax Team and Julie Cuthbertson, Manager in their Corporate Finance team

Issues will include:

• Mechanisms for dealing with shareholdings in the case of the critical illness or death of a shareholder in order to protect the business and the other shareholders

• The use of life and critical illness policies to support succession planning issues, including ensuring they are structured in a tax efficient manner

• The importance of your company’s legal documentation, including Articles of Association and Shareholder Agreement being properly prepared to avoid future conflict and unnecessary costs on the death or critical illness of a shareholder

• The importance of your personal Will and Lasting Powers of Attorney being in place and up to date and making sure they work alongside the plans for your business

• In the context of these arrangements, the importance of ensuring the valuation of your business reflects current circumstances and some guidance on valuation metrics.

The Common Room is a unique heritage venue in the centre of Newcastle, which celebrates the region’s commercial history through education and engagement, with a vision to inspire the next generation of innovators. The redeveloped Mining Institute is one of the city’s most interesting buildings.

Getting there:

By metro –

The venue is a one-minute walk from Central Station Metro

By car –

Dean Street - https://www.getintonewcastle.co.uk/venues/dean-street-car-park

Stephenson Quarter - https://www.getintonewcastle.co.uk/venues/stephenson-quarter-car-park

For more information email Charles Penn, Perspective (North East)’s head of marketing at charles.penn@pfgl.co.uk.