Company Protection Insurance

Any business, large or small, is likely to face the unexpected at some time but you can reduce this risk by planning ahead, giving your company protection for the future. Whether your business is an LLP, sole trader, partnership or limited company, Coalesco can put you in touch with business partners to provide you with complete peace of mind and are designed to match your business and personal requirements:

Shareholder Protection

If you or another of your company’s shareholders were to die, who would the resultant shares be allocated to?

In many cases, the shares would be left to the deceased’s family as part of your estate. However if your spouse, or other family members, do not want the responsibility of running your business after your death, they may decide to sell your share of the business. This could result in a loss of control for the surviving shareholders if they weren’t in a position to purchase your shares.

Shareholder Protection can ensure that, on the death of a shareholder, the remaining directors have the funds and agreement in place to purchase the deceased’s shares. This can enable a swift settlement to the estate and retain control of the company with the shareholders.

Further planning can be implemented that ensures Inheritance Tax is not paid unnecessarily on either the share value or the proceeds of sale of the shares.

Loan Protection

As a business partner, member or sole trader, have you considered how your business or partnership loan repayments would be met if you were taken critically ill or died? Our business partner can provide Loan Protection to suit your company’s structure and type of loan, ensuring that your obligations are met.

Key Person Protection

If your business relies on one or two key employees have you asked yourself what the cost to your business would be if they were to die or become critically ill? Many companies would list their business partners as their key people. However, it is worth considering the following questions to identify whose absence would have a significant impact on your company’s survival:

  • How easily could the business replace their expertise?
  • Would business growth or ongoing projects be affected?
  • Would you lose customer orders?
  • Are any loans or overdrafts dependent upon them?

Key Person Protection helps to minimise the impact on your business if your key people become ill or die. Contact us to discuss which type of cover would be appropriate to protect your company.

Shareholder Agreements

We provide a very comprehensive but cost-effective shareholders’ agreement with our solicitor partnership. Every company should have one. Get in touch and find out more.

A Shareholders Agreement is a contract made between the shareholders of a company. It governs the relationship between the shareholders, and sometimes between the shareholders and the company. Shareholders agreements are entered into voluntarily by the shareholders to provide certainty, to avoid conflict and to protect their investment in the company.

In the absence of an agreement, the relationship between the shareholders of a company is governed by applicable law and the company’s Articles of Association so the purpose of a shareholders’ agreement is to amend this “default” position.

Our Shareholders Agreement and Joint Venture Agreement package is suitable for shareholders of companies incorporated in the UK. There are no requirements as to its contents (although there are some restrictions) so we would work with you to identify relevant elements to suit you and your business. However, you may wish to consider the following provisions:

  • Controlling “ownership” – imposing restrictions on the transfer of shares.
  • Forced Sale – forcing a sale or purchase of shares in specified circumstances.
  • Minority Rights – providing additional protection to minority shareholders.
  • Board Control – regulating the appointment and removal of directors.
  • Finance – regulating debt and equity finance of the company.
  • Non-Compete – restricting shareholders from competing with the company.
  • No Poaching – preventing shareholders from poaching customers or staff.
  • Future Shareholders – allowing flexibility to introduce further shareholders.
  • Business – defining the permitted scope of the company’s business.
  • Dividends and Salary – setting out clear rules regarding the payment of dividends and other benefits, including salary and directors’ fees.
  • Conflict resolution – mechanisms to resolve conflict between shareholders.
  • Tax – if there are corporate shareholders, insert provisions regarding consortium or group relief and VAT grouping.