Anonymised examples of our advice. Each reflects the client’s circumstances at the time. Where we describe a recommendation or proposal, this does not imply the cover has been put in place.
Protecting the working owners of a security business
A security business had two working shareholders alongside outside investors. The working owners wanted a plan that would help the survivor buy the other’s shares following a death, while providing funds for the deceased owner’s estate.
We recommended shareholder protection structured around those two owners, with each owning a policy on the other’s life and a cross-option arrangement to support the intended share purchase. The advice took account of the wider ownership structure, rather than treating every shareholder’s needs as the same.
Planning ahead for two equal business partners
The two equal owners of a physical education business wanted the surviving partner to have the means to buy the other’s shares following a death.
We recommended cover based on each owner’s share of the agreed business valuation, alongside business trusts and a cross-option arrangement. The aim was to give the survivor a way to fund the purchase and the family a route to receive value for the shares.
Looking at the whole picture for a nursery business
For the owners of a nursery business, protecting their shares was only part of the picture. The business also had a commercial mortgage, and its holding-company structure needed to be considered.
We recommended separate shareholder and business loan protection arrangements. Each had a clear purpose: funding a share purchase following an owner’s death, and providing money to help repay the business borrowing.
Key person cover was in place—but what about the shares?
A business with a wider group of investors already had key person cover arranged through Clearbrook. In a subsequent review, we identified a separate question: how would either of its two working owners fund the purchase of the other’s shares following a death?
The existing cover was intended to support the business financially. It did not itself provide an arrangement for the surviving owner to buy the deceased owner’s shares.
We proposed shareholder protection focused on those two owners, alongside a potential cross-option agreement. Before finalising the structure, we requested the company’s articles and any shareholders’ agreement so the proposed arrangement could be considered alongside existing transfer and valuation provisions.
This example describes a proposal made following a review. It does not represent an implemented shareholder protection arrangement.
