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


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.


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.


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.


Step Four

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


Step Five

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