The Corporate Will

The Corporate Will

Most people have a will which is like a set of instructions or wishes upon their death. We recommend that businesses also have a will – a corporate will. This will provides a framework for all parties should a shareholder suffer an untimely death. The key to the corporate will is the discussion and formulation while all parties are available.

Key issues are:

  • Will the business continue to trade?
  • Who will own the shares?
  • How will any payment for shares be funded?
  • Will the business require cash as the result of the loss of a shareholder?
  • Are there personal guarantees that need to be addressed?

We are very experienced in assisting business owners to address these issues. We have a successful proven process.

Our corporate will planning approach involves a seven step process:

  1. Identify what you want to happen in the event of your or other shareholder’s death. We call this the estate vision.
  2. Identify what would happen now – this is your situation analysis or current reality
  3. Identify the threats that may impede efficient distribution of assets
  4. Establish the adequacy of assets to achieve the estate vision
  5. Identify critical issues and establish tasks and objectives which deal with the threats and impediments to your wishes. Create the corporate will.
  6. Take action and implement the corporate will for the business.
  7. Review on a regular basis the relevance of the will and the actions involved.

The key to the whole process is the involvement of all key stakeholders, listening to their wishes and formulating a workable plan that reflects the desired outcomes.