If you are a director in a Limited company, you must consider who you and your fellow Directors would want your shares to pass to in the event of your death. Without a formal arrangement in place, the shares would fall into the deceased’s estate and would more than likely go to his or her family, who could then end up with a controlling share and a say in how the company is run.
It is quite likely that this would not be a satisfactory outcome for anyone.
The death of a shareholder or a valued and skilled employee can have a major impact upon a business. It is essential therefore that the right decisions are made in advance, to ensure that the business can continue with as little disruption as possible. If a director in your company is responsible for repaying a specific loan or debt, how would you repay it in the event of his or her death? If you in a partnership, what would happen in the event of a fellow partner dying?
A Corporate Will ensures that, in the event of critical illness or death of a company shareholder, funding is available for the remaining shareholders to purchase the shares and keep control of the business. Additionally, it also ensures that the beneficiaries quickly receive the true worth of the shares.
Please note, some of these services are not available in the UAE. For more information, please contact us.