If you would like to progress or discuss the implementation of a cross-option agreement, please get in contact with us by filling out the below form or contact Martyn Brierly (Head of Corporate of Finance) on 01332 226 188.
Have you ever considered what will happen to the business, should you or another shareholder pass away?
18 December 2017
Insight
Without any express agreement to deal with what happens to a shareholder’s shares on death, then a family member of the deceased may acquire those shares and have the ability to have a say in the future direction of the business.
A potentially daunting prospect but more daunting still, those shares could be left to someone other than a shareholder’s immediate family who you know, a distant relative or charity.
You may consider that you have already dealt with this as part of any written shareholders agreement you have entered into. However, this frequently only gives surviving shareholder(s) a right to acquire the deceased’s shares but does not give your estate the right to force the remaining shareholders to purchase those shares on death.
Your family may have no way of realising the value you have built in the business if the surviving shareholders do not have the funds to purchase your shares on death. Alternatively, the surviving shareholders or the company itself may simply not have the appetite to use their funds to purchase the deceased’s shares.
A cross-options agreement, supported by life insurance arrangements on your and your fellow shareholder’s lives, can ensure that, should you or another shareholder in your business pass away:
Flint Bishop advised the shareholders of X2 (UK) Ltd on its sale to northstarr, supporting the logistics provider’s next phase of growth and expansion.
Read More
New legal duties require organisations to handle data protection complaints correctly. Learn what you need to do now.
Read More
Download Flint Bishop's Corporate Finance Transactions Review 2026 and explore recent acquisitions, sales, investments and EOT transactions.
Read More
How suppliers’ use of AI can create IP, data protection, and contractual risks, and how businesses can manage them.
Read More
CS Regulatory has been acquired by CERTANIA, strengthening regulatory compliance services across the UK, Ireland and Europe.
Read More
Flint Bishop advises Autosupplies Holdings Ltd on its acquisition by Alliance Automotive Group UK and Ireland (AAG).
Read More
Flint Bishop advises Millenium Site Services shareholders on sale to Maple House Capital, supporting business growth and expansion.
Read More
Bowmer + Kirkland has acquired Denton Associates, enhancing its interiors capability and marking a key strategic milestone.
Read More
Prepare for ECCTA identity verification: directors and PSCs must verify by 18 Nov 2025 to ensure compliance.
Read More
Drop shipping is growing fast. Find out how the right contracts can protect your margins, brand and legal position.
Read More
R.E.A.L. Education Limited (“R.E.A.L.”), a leading provider of special education services, has been sold to The Aurora Group.
Read More
Learn about fiduciary duties, commission disclosure, and legal compliance after the Expert Tooling v Engie ruling.
Read More