Seminar: Business Trust (12-13/7/12)

Business Value Protection Trust (BVPT)
Business value protection or business succession involves planning for the smooth transfer and continuation by the co-owners due to retirement, death, illness or disability.

Key questions for business owners:

• When a business owner decides to retire or suffers a life threatening illness or dies, is there a proper exit strategy put in place?

• Is the exit strategy stated in writing to ensure smooth transfer and continuation of the business? Has it been structured properly?

• In the event of death or disability, can the heirs of the business owner manage the business with the co-owners? If no, will the heirs be compensated in any way to ensure adequate income for them?

• Will the co-owners have the available funds to purchase the business owner’s interest or shares when the time comes to do so?  

Key components of Business Value Protection

• Buy-Sell or Buyout agreement and issues for consideration
• Option agreement - when it should be used and issues for consideration
• Power of attorney - types and usages
• BVPT - structure and important elements for Muslims and Non-Muslims

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3G Family Biz Trust

3G Family Biz Trust creates a structure for the continuation of the family business with or without the involvement of the family members. The existence of family participation in the business directly or indirectly, can strengthen the company because family members are often loyal and dedicated to the family enterprise.  However, family participation as managers of a business can present unique problems because the interests of a family member may not be aligned with the interest of the business.

Through the application of various strategies, 3G Family Biz Trust is designed to benefit the family members to receive the dividend income from the trustee and the profits generated by the business  to ensure the continuity and preservation of the business within the family.  More importantly, the strategies used are to ensure that the business is managed by a competent person overseen by the Board of Directors.