Cross Option Agreements (APR 2020)

Like many thousands of companies/partnerships with a few shareholders/partners who also hold key positions in the business, the death or inability to return to work of any of them can cause major issues for the other shareholders/co-owners, and for their respective families. 

The following are just some of the questions that can arise:  What happens to the shares on death/critical illness of a co-owner? Who will control the company?  What happens if a sale of the shares is necessary? Who will be able to buy them? Who can afford to buy them?  What are the shares worth?  Will the family secure sufficient income if they retain the shareholding, or would they prefer cash?  What are the rights of a shareholding director if they become critically ill and are unable to return to work? How any cash proceeds would be distributed to the family members?

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