Protecting Your Business The Importance of Shareholder Protection for New Zealand Business Owners

As a financial adviser in New Zealand, I often see business owners overlook the critical aspect of shareholder protection. This form of insurance is designed to safeguard your business if a shareholder becomes critically ill, disabled, or passes away. Here’s why it’s essential: 

Why Shareholder Protection Matters 

Business Continuity: It ensures the business can continue operating smoothly by providing funds to buy out the affected shareholder's shares, avoiding financial strain or the need to sell assets. 

Maintaining Control: Prevents shares from passing to next of kin who may not share the same vision, maintaining stability and control within the company. 

Financial Security: Offers financial security to the affected shareholder's family, helping cover personal expenses during tough times. 

Conclusion 

Shareholder protection is a vital part of a robust business continuity plan. It provides financial security, maintains control, and ensures the business can handle unexpected challenges. As a financial adviser, I urge New Zealand business owners to consider this essential investment in their business's future. 

If you have any questions or need assistance, feel free to reach out to Michael here or michael@duxfinancial.co.nz