Insured Business Agreements

Shareholders and Partners Need a Clear Relationship!

All corporations have a certain structural integrity which should be addressed at the outset of a company’s start of business.

This usually doesn’t happen as the first order of business is often devoted to running the business.

Often overlooked are the issues that arise through partner and shareholder disagreements, key person disability and key person, partner or shareholder death.

A Unanimous Shareholder’s Agreement (USA) contractually dictates various courses of action that all shareholders agree upon; actions which are activated when significant corporate events occur. Lawyers are generally called upon to draft such agreements. But lawyers are generally not well versed in how insurance applications can and should be incorporated into USA’s.

Business Contracts – Partnership and Buy/Sell Agreements often suffer from the same deficiencies as USA’s

These business contract should provide a framework for purchasing the financial interests of shareholders or partner who has become disabled and is therefore unable to perform his or her duties. If an “active” shareholder or partner has passed away that partner’s or shareholder’s interests in the company are now in the hands of the beneficiaries-individuals who may not have sufficient knowledge or ability to carry on in the company’s operations. Agreements funded through insurance can ensure the disabled person or his or her estate receive appropriate financial compensation without impairing the ability of the company and the remaining partners to carry-on.

Morgan National can provide draft business contracts where none are in place. We can also review existing agreements to help ensure that risks are contained through key person insurance in accordance with USA’s, Buy/Sell Agreements and bank loan guarantees.

Call Morgan National Corporation today at (866) 595-3533.