The other partners & family would hold a percentage of shares & they or someone else could be voted to fill the role if the deceased person played an active role or position in the company. You would have to have business experience if it was a managers or high role position to even be considered as a replacement. If a silent partner then it wouldn't make a difference. The profits would go to the next of Kin or to whoever was the benerficery/ies. I assume.
I think the way it works is that most of the time, someone else owns some of the company, so the company goes to the person that has the highest percentage and he/she gets the dead persons percentage, for example if John owns 20% and Dave owns 30% and the Matt who died had 50% Dave now owns 80%. Or if Jane owns 15% and Rose owns 85% and she dies then now Jane owns 100%, but thats just my guess.
5 months ago
Last edited at 1:43PM on 7/7/2013
Ownership of the company would be deemed as part of the estate of the deceased. If there is a will .. then it would be clearly spelled out. If there is no will .. Then it may be a little more difficult to deal with .. someone who dies intestate leaves no assurance that their assets will be inherited by their loved ones .. once the government takes over the estate .. they will take their 'chunk' and divide it up how ever THEY see fit.
If there are partners and a 'survivorship' clause in their agreement, the surviving partner "MIGHT" inherit the entire company.
There are a lot of "IF's" that have to be addressed when people own a business ..in terms of what happens "IF" someone dies. Assets and debts are handled as per agreement and/or will.
It depends on the kind of company. If it is a corporation the company can continue in existence and the shares of stock will go to the owner's heirs. If it is a sole proprietorship the assets become part of the owner's estate and are distributed to the heirs after all debts are settled from the estate.