Commercial Alert: Is your business protected?Reading Time: 2 minutes
1. What is a Shareholders / Partnership Agreement and why do you need one?
Whether you are a newly formed company or an existing one, your business should have a Shareholders Agreement or Partnership Agreement. Your business will benefit from a private arrangement between you and your other Shareholders/Partners which contains :
- the rules by which ownership of your company/business is held
- the basis for resolution of disputes which reduces the possibility of conflict
- the specific powers for you and your other Shareholders/Partners
- the limits and procedures on how your company/business is to be run.
Without this any disagreement or deadlock will have to be decided by the Court and the outcome will not always be favourable to you.
2. What is a Cross Option Agreement and why do you need one?
The death of you or your Partner will alter the balance of power within your business and can create financial difficulties for your family members and dependents.
A Cross Option clause within the Shareholders or Partnership Agreement protects the families of the deceased as well as the remaining Shareholders/Partners by specifying what is to happen to the deceased’s share in the business and supporting this with a life assurance policy.
At Bennett Griffin we see the Cross Option clauses as a necessity for any company or business and we include these within all our Shareholders and Partnership Agreements. It is in your interest to protect your family and to plan for the continuation of your business so let BG Commercial provide you with peace of mind. For a limited period we at BG Commercial are offering our services for your Shareholders Agreement or Partnership Agreement for a fixed fee of £500.00 plus VAT.
In order to take advantage of this opportunity please contact Kate Hallin on 01903-706964 before 31 July 2009. We look forward to hearing from you.
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