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Shareholders' protection

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where there may only be a small number of principal shareholders – it is essential to provide a safety net following the loss of a shareholder:
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The company or other shareholders will want to retain control by buying lost shares – but may not have the resources to do so
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The shares may be taken over by someone who does not share the company’s objectives – and may even be a competitor
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Shares may go to the deceased’s family, which has no interest in the business and would prefer a cash sum
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shares if the shareholder dies or becomes seriously ill.
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is a contingency process detailing what will happen to a
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Legal protection against the death of a shareholder
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verification
improve this article
adding citations to reliable sources
"Shareholders' protection"
news
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scholar
JSTOR
Learn how and when to remove this message
shareholder's
financial security
private limited companies
"Share Protection | Business Protection | Legal & General"
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law
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Corporate law
Shareholders
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