We have a 5-step process which is designed to be economic with the time of the company owners

1

Step One

Meet with the Directors/Shareholders and explain the service in detail and if they wish to proceed we discuss the issues that are pertinent to them. These may include:-

  • The advantages to shareholders, including trustees, of having a contingency agreement.
  • How to handle personal guarantees if a key shareholder is no longer in the business but a lender refuses to release them (they are enforceable on estates).
  • Treatment of company debt if a shareholder dies or sells shares.
  • The term of sick leave for a working shareholder.
  • Preservation of taxation imputation credits when ownership changes.
  • The terms of payment for shares. Different criteria apply if an insured event occurs as opposed to something that is not insured such as a sudden resignation or even a planned retirement.

There are other issues on the agenda for a first meeting, some of which may include insurance cover but most of the foregoing does not.

2

Step Two

From this initial interview a draft agreement is composed by Mainstay and presented in person to the Directors. This usually requires further customising and the meetings are repeated until the shareholders are satisfied.

3

Step Three

The agreement is then presented to the company accountant and then vetted by a solicitor nominated by the parties or by each party's individual solicitor.

4

Step Four

Implementation of the agreement and any insurance policy that may be required finalises the transaction.

5

Step Five

Ongoing review at least annually to ensure that the plan reflects changes in values or the business.