Why purchase Co-Director Insurance?
The directors of a company are often the major shareholders and make all the key decisions for the firm. A successful business depends on the close co-operation and experience of the directors.
The death and/or serious illness of one of the directors can have a serious impact on both the surviving directors and the deceased’s successor(s).
The remaining directors may be faced with a new shareholder and director who has little business expertise and contacts. If the deceased director owned more than 50% of the business, disagreements may arise if the deceased’s successor(s) – who would now be the majority shareholder(s) – has different plans for the future of the business.
Ideally, the remaining shareholders/directors or the company would buy back the deceased’s shares but may not have sufficient funds available to do this. The deceased’s successor(s), on the other hand, may not wish to become involved in the business and might find it difficult to sell their shareholding. They might indeed welcome a cash sum at this difficult time.
Co-Director Insurance gives the directors of a company peace of mind that there will be funds available to them on death of a director to buy back his/her shareholding from his/her successor(s), thereby maintaining their control of the company.
Contact Your Local Independent Financial Adviser
Lucas Financial Consulting Ltd is based near Carrickmacross Co Monaghan. As we straddle four counties – Louth, Monaghan, Cavan and Meath we are ideally placed to become your new Local Independent Financial Adviser.
Warning: The value of your investment may go down as well as up
Warning: Past performance is not a reliable guide to future performance
Warning: Funds may be affected by changes in currency exchange rates