Covid-19 Update: We are continuing to provide our usual services whilst maintaining the safety of clients and colleagues. Read our latest update here.

Complete the form below to ask us a question or make an enquiry. We’ll get back to you via phone or email as soon as possible.

Insights

Ensure your small business WILL continue once you’re gone

Posted on 14th March 2018 in Company & Commercial

Posted by

James Orpin

Partner and Solicitor
Ensure your small business WILL continue once you’re gone

Small business owners do not just need a will. They need to be sure their business will be able to continue if the worst happens.

When the sole director of Cimarron UK Ltd died without these arrangements in place, her executor had to incur the cost and uncertainty of going to court. The company’s articles of association (the written rules about the running of the company) did not permit the executor to act as a shareholder or to appoint a director to run the company. This left the company without any shareholders or directors and facing a very real risk that it would have its assets frozen and be forced to cease trading.

Luckily, the court’s decisions allowed the executor to be registered as a shareholder and appoint a new director. However, the case gives a clear indication of the risks and potential costs that can follow when a company’s articles of association and a shareholder’s will do not provide sufficient clarity.

Getting your will and company structure in order is therefore vital to ensure that your company can continue to run smoothly following your death, particularly in the case of sole member companies. It can also protect your executors from a lot of unnecessary stress.

If you wish to speak with our experienced team of company & commercial lawyers, please call us on 01392 207020 or email enquiries@tozers.co.uk.

Company & Industry

Related Insights

Insights

Children and Covid-19 Vaccination – June 2021 Update

Posted on 14th June 2021 in Family Law

Given the success of the vaccine rollout amongst our adult population, it is natural that thoughts have recently turned towards how children can be best protected.

Posted by

Bea Taylor

Trainee Solicitor
Insights

Parental Responsibility

Posted on 14th June 2021 in Family Law

Individuals with parental responsibility have the right to be involved in important decisions that impact their child’s life, including areas such as education, health and religion.

Posted by

Bea Taylor

Trainee Solicitor