The sudden death, injury or illness of a key partner can have devastating effects on the value and continuity of a business.
A shareholder agreement is not a “one size fits all” type of agreement and should regularly be reviewed. Your legal and other professional advisors will be able to assist you to tailor a solution to your specific circumstances.
A primary reason for a family business’ lack of longevity across the generations is simply a lack of proper succession planning. It is often seen that it “goes without saying” as to who will succeed to leadership and ownership of the business. Sometimes, it is simply too hard to contemplate, and the family might ignore the issue and hope that it goes away.