Cross option agreements (company wills)

Like most financially responsible people, you have probably written a personal will to make sure that your estate passes to your chosen beneficiaries in the event of your death, rather than pass under the intestacy rules.

However, what about your company? What would happen to your business if you, or one of your fellow shareholders, died or became seriously or terminally ill and had to retire?

Your company’s articles of association may well set out how shares are to be dealt with on death or retirement and they may even set out valuation provisions in those circumstances.

However, losing a key director shareholder is likely to have a serious impact on business performance and the company is unlikely to have enough money to buy back those shares.

Being unable to buy back a deceased or seriously ill shareholder’s shares, or having no agreement in place to manage this, could lead to expensive legal disputes, loss of control of the company and financial difficulties for your loved ones.

Our company, commercial and business lawyers are experts in creating company wills. We can:

  • review your current arrangements
  • suggest solutions
  • put in place an agreement that will ensure that your shares could be bought by the remaining shareholders at a fair price so your beneficiaries benefit

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You can access any of our company, commercial and business lawyers at any of our offices spread throughout Surrey, Hampshire and Greater London including Kingston upon Thames, Bordon, Cheam, Canary Wharf, Leatherhead, Raynes Park, Surbiton, Tolworth or Walton on Thames.