Do you have the correct paperwork to meet your business needs? Ensuring you have the correct paperwork in place for your business is crucial to meeting your needs and protecting your interests. Wills and shareholder agreements are two essential documents that business owners should consider having.
A Will is a legal document that outlines how your assets should be distributed after your death. It is essential for business owners to have a Will in place to ensure that their business interests are adequately handled. Without a Will, there could be disputes among family members or business partners, leading to complications or even the dissolution of the business.
A Will can specify how your ownership in the business should be transferred or who should take over the management.
On the other hand, a shareholder agreement is a contract between a company’s shareholders that outlines each shareholder’s rights, responsibilities, and obligations. It covers essential matters such as decision-making processes, buy-sell provisions, dispute-resolution mechanisms, etc. The agreement helps to define the roles and expectations of shareholders, which can prevent conflicts and provide a framework for the smooth operation of the business.
It is advisable to update Wills at least every five years so you can correct any changes to your personal and financial circumstances, as well as inheritance tax legislation. You should also review your Will when there are changes to your company governance documents.
In summary, business owners must have a Will and a shareholder agreement. These documents ensure that your business interests are protected, and your wishes are carried out.
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