When a business is formed with friends, there’s when we need to take an extra steps to protect our shares for the benefit of our family members. Why do I need to do so? Write a Will and transfer the share to my next of kin. That’s all I need to do, isn’t it ? Yes, there’s nothing wrong with transferring your company shares to your loved ones but one should answer these questions together to see how ready is the heirs.
- Can your family members take over the business and continue to grow ?
- Do they want to take over the business ?
- Do they know how to operate the business ?
- Can they work well with your existing business partner ?
- Will they have the same direction as before ?
- If they do not want the share, can they sell to the existing business partner with a fair value at the point of time ?
Common problems arise upon existence or death of a business partner.
Is always better be prepared than sorry. Business income might be the main source of income to our family members. Protect the company share currently own by you so that family members continue to receive continuous income flow even without our presence.