Business Continuity When a Business Owner or Shareholder Passes Away

In this episode [260/1], Bruno Miguel Simao of Bruno Simao Attorneys and Nicholas Brodie of SBL Incorporated discuss discuss an important issue that many business owners overlook: business continuity. What happens to your business if you suddenly become seriously ill, incapacitated, insolvent, disabled—or pass away? A business should not depend entirely on one person. If all operational decisions, banking authorisations and approvals rely on one individual, the business may come to a standstill when that person is no longer able to perform their role. In this episode, we look at: What business continuity means and why it is so important. Why business owners should conduct a business continuity audit. The risks associated with operating as a sole proprietor. The difference between a director and a shareholder in a company. Why relying too heavily on shareholder decisions can create serious operational difficulties. What happens to a shareholder's shares when they pass away. The potential impact of estate administration on the continuation of a business. Why business partners should have an agreement dealing with what happens when one partner dies. How a buy-and-sell agreement can protect business partners and the future of the business. Why a valuation mechanism should be agreed upon in advance. How life insurance can potentially be used to fund the purchase of a deceased shareholder's shares. Why proper planning can help prevent a deceased shareholder's family or an unintended third party from suddenly becoming involved in the business. The key message is simple: Don't wait for a crisis to think about business continuity. If you own a business with partners or shareholders, ask yourself: “If I disappeared tomorrow, could this business continue operating without me?” Proper planning, appropriate agreements and suitable insurance can make a significant difference to the future of a business and the people who depend on it. Watch PLA – Episode 260 (Part 1) to learn more about business continuity, deceased shareholders and protecting your business for the future. Follow us on Facebook   / 859210484553454   Panel of experts Bruno Miguel Simão of Bruno Simão Attorneys https://www.brunosimaolaw.co.za/ (011) 234 0831 info@brunosimaolaw.co.za Nicholas Brodie of SBL Incorporated https://www.sbllaw.co.za/ 086-100 7757 enquiries@sbllaw.co.za