Guiding Clients Through Freezing Share Value
It is very common in private corporations to want to maintain the value of the owner’s shares when planning transactions, and to increase the value of the shares owned by family members. This can be done as a first stage of the sale of the business and as a way of increasing the value of the shares of other shareholders.
PMR Law has moved into the field of providing many Alberta-based clients with direction and corporate services with respect to implementing estate freezes in business succession plans. We have helped owners balance their ownership rights and developed legal strategies on issues such as:
- When is the best time for a founding shareholder to start the process of giving up ownership of a business?
- How does a business structure a bonus, profit sharing, dividend or share issuance program to attract and retain growth?
- What form of participation plan is favoured by the business?
- How do the tax laws enter into the planning discussions?
Designing A Unique Ownership Structure
Freezing of value involves concepts of corporate tax law and planning into the ownership structure of a property or business. Common among family businesses, it allows one generation to retain control of a company. It also helps groom the next generation for the eventual transfer of the rights and obligations of running a business.
This planning can maintain effective control and decision-making, so that the founders can have maximum power to deal with changes in circumstances.
PMR Law can help owners and controlling shareholders of private companies from different industries establish a key personnel participation program that benefits all parties. We can design a structure that motivates key value drivers to enhance the value of our clients’ businesses.
PMR Law has the experience to recommend a tax freeze as a way of achieving the objectives of a business owner.
Combining our knowledge of business and tax law with our extensive litigation experience allows PMR Law to develop logical and responsible plans for ongoing business profitability. We can develop solutions that are reasonable and protect the interests of our clients.
Talk To Our Lawyers Today
Contact Shaun T. MacIsaac, Q. C. of PMR Law today in our Calgary office at (403) 457-9600 or by email at [email protected] and find out how we can help.