You know that you want to empower key leadership in your company to take over and step into bigger roles if and when you need to depart. You probably also know that there may be some documents in place, such as contracts or buy/sell agreements that stipulate the circumstances under which you could leave the company and other people can step up.
Creating a formal business succession plan gives you peace of mind about the opportunities available to you and how best to protect yourself. Knowing that you have a plan in place enables your company to take the necessary action if and when you need to depart, whether that departure is voluntary or involuntary.
After you create a formal business succession plan with the support of an attorney, you’ll want to make sure that you formalize the plan by updating or creating supporting documents. This can include a broad range of different types of materials such as:
- Key person agreements
- Buy/sell agreements
- Trust agreements
- Shareholder agreements
- Powers of attorney
- Key person compensation agreements
Make sure that additional details, such as mortgages, wills, property deeds, bank account information and life insurance and property and casualty information is also easily accessible to the person who might need to access it in the future. For more questions about creating and updating your business succession plan, schedule a consultation with an attorney today- our business succession law office in Pasadena is still open!