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FLAG THIS PAGE 9. Jrmie, Pascal and Stphane are equal shareholders in Dsauto Inc. Each shareholder has a life insurance policy naming the co-shareholders
FLAG THIS PAGE 9. Jrmie, Pascal and Stphane are equal shareholders in Dsauto Inc. Each shareholder has a life insurance policy naming the co-shareholders as beneficiaries so they can buy the shares of the deceased shareholder. Upon Stphane's death, his wife Dominique inhered his shares. When Jeremie) Pascal wanted to buy her shares, Dominique asked for a much higher price that not only exceeded the amount the shareholders had discussed but thi was also much higher than the amount stipulated in the policy. This forced Jrmie and Pascal to be co-shareholders with Dominique, who has no experience managing such a company. What measure should the shareholders have taken to prevent such a situation? Have a written buy-sell agreement in place. Have legal representatives draft a formal will for each shareholder. O Fund the purchase of the shares with business-owned insurance. Fund the purchase of the shares with the "criss-cross insurance" method.
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