ANNOUNCER: I’m with Faisal Nassim from Cohen Highly Lawyers. What should business owners know about succession planning?
FAISAL: Succession planning is vital for businesses. It lets you plan for what happens to your business in the event of any key stakeholders disability, marital breakdown, bankruptcy, or even death. A well drafted succession plan or agreement helps proactively address problems and disagreements and ensures timely transitions are made without adversely affecting business operations. Succession planning can also help with the business exit strategies or where the reins will be handed over to successive fellow colleagues, business partners, or even family members.
ANNOUNCER: Give some specifics involved in corporate succession planning for corporate business owners with more than one shareholder.
FAISAL: It invariably starts with a shareholders agreement outlining solutions on what happens to shareholdings upon death, disability, bankruptcy, deadlock on decision making, dispute resolution and more. We routinely work with clients financial planners in developing such documentation.
