Paramount Group - Shareholder/Partnership Protection

Newsflash

Protecting Tax Free cash

As you generally advise your clients regarding remuneration strategy and more importantly profits extraction it appears, following research with our existing clients that, for those who hold executive/directors pension policies and even those with small self administered schemes, it is now worth a review. This would examine whether it would be advantageous to transfer the existing benefits to a section 32 or section 32A (Block transfer) and start funding a self invested personal pension. For those who have small self administered schemes it is still possible to transfer to a section 32 and have the section 32 self invested, utilising the commercial property occupied by the sponsoring employers company.

Shareholder/Partnership Protection

The death or permanent incapacity of a shareholder or partner can cause a shift in the balance of power within a business and can create financial difficulties for the surviving shareholders, partners and their beneficiaries.

For example:

If majority shareholders die voting rights that directly affect the running of the company would normally pass to the deceased’s beneficiaries. The implications for a business could be as follows -

The beneficiaries would now have the right to a say in the running of the company.
If that was not a priority to beneficiaries would the other shareholders have sufficient available capital to purchase them?
The death of a partner could lead to the dissolution of the partnership.

One salutation to such a scenario is shareholder/partnership protection.

It is therefore in the interests of all interested parties to plan and finance business continuation, in the event that a shareholder or partner dies or becomes critically ill.