What Happens When A Shareholder Dies?

Delaying plans is understandable, but an unexpected illness or loss can deeply impact a business owner's family, the business's future, and fellow shareholders.

It is easy to put off such plans but the effect of an unexpected illness or bereavement can be devastating not only for the family of the business owner but also for the future prospects of the business and their business partners/fellow shareholders.

Death of a shareholder

If specific provisions have not been included in the articles of association of a company or in a shareholder or partnership agreement, the shares of a deceased business owner will pass in accordance with the deceased’s will and handled by the executor of a will or under the intestacy rules.