What is the most essential element in your disaster recovery plan?

You are 50/50 owner and manager of a small limited company in which two of you (and some employees) work full time but divide up the duties of running a successful business.

Your co-owner gets sick and dies very quickly. Suddenly the most reliable bloke in the business is no longer there AND it looks like there is a massive scrap starting over who inherits his shares.

You can't sell the business or even sign the new lease or hire a replacement without him as they all require his approval and now his wife is threatening to come and work in the business even though you have never got on with her.

Thankfully, as part of your disaster planning and your shareholders’ agreement and on the commercial advice from your Solicitor, you each made a will and powers of attorney for business and property interests as well as for health and welfare. This means that you can deal with all his business affairs, including buying his shares at a fair market value and paying his widow over a period of time so that the Company can continue trading. Call me on 01202 311112 for more info.

Article Date: 23/05/2016