As you grow your business and grow older as well, you will have to be prepared for business disruption and the financial consequences of death or disability of key people in the business.

The death of a proprietor and a general partner leads to the death of the proprietorship or partnership and triggers a string of consequences, if there is no succession agreement in place.

There are buy-and-sell agreements which the proprietors can arrange to ensure that there is a ready successor. And there are partnership buy-and-sell agreements between partners which can ensure that the business continues and the deceased partner’s estate is compensated.

As for corporations, shareholders buy-and-sell agreements may save a lot of headaches even though the corporation, as a separate legal entity, will continue despite the death of a shareholder. Having a pre-arranged buy-and-sell agreement between shareholders (and possibly would be shareholders) will ensure that no unwanted shareholders get on board.

We have specialists who will advice on succession planning issues and help draw up succession plans and their implementation. Lawyers will be appointed to draft the agreements.