Shareholder Protection
*
Protect Ownership. Preserve Control.
Shareholder Protection Insurance by Park Hill Financial
What would happen if a shareholder in your business were to pass away or become seriously ill? Would their shares pass to their family? Could your remaining shareholders afford to buy them out?
Shareholder Protection Insurance ensures you stay in control of your business and avoid ownership disputes during the most challenging times.
At Park Hill Financial, we specialise in helping small businesses and company directors put Relevant Life policies in place as part of a smart, cost-effective protection strategy.
What Is Shareholder Protection?
Shareholder Protection is a life insurance policy (sometimes including critical illness cover) set up by a business or its shareholders. If one of the shareholders dies or becomes critically ill, the policy pays out a lump sum to the surviving shareholders—allowing them to buy back the shares and retain control of the business.
This protection is usually supported by a legal agreement—often a cross-option agreement—which ensures that shares are transferred smoothly and fairly.
The key difference? It’s structured to be tax-efficient, both for the business and the employee.
Why It Matters
Without shareholder protection in place, a shareholder’s shares could:
- Be inherited by family members who may not want involvement in the business
- Be sold to a competitor or outside party
- Create disputes among remaining shareholders
- Leave the business without direction or control
Shareholder Protection provides clarity, continuity, and control.
Benefits of Shareholder Protection
Retain Business Stability
Ensures the smooth transfer of shares and avoids disruption.Protect Surviving Shareholders
Enables them to purchase the shares at an agreed value—without personal financial strain.Support the Deceased’s Family
Provides a fair payout rather than shares they may not want or know how to manage.Preserve Ownership
Prevents shares from falling into unwanted hands or external influence.Legal & Financial Certainty
Supported by formal agreements to avoid future disputes.
Book a Free Consultation
Why Choose Park Hill Financial?
Setting up a Relevant Life policy requires expert advice to ensure the right structure, compliance with HMRC rules, and maximum tax benefit. At Park Hill Financial, we:
- Work with top UK insurers to find the best terms
- Help you structure policies for directors or key staff
- Provide guidance on writing the policy in trust
- Ensure all tax advantages are properly applied
- Offer ongoing support as your business grows