Are you your company’s Steve Jobs?
My brother is a die hard Mac/Apple fan. I tend towards PC/Microsoft. Just like the commercial, we have spirited discussions on the pros and cons of each. But we are united in one thing – the hope that visionary Apple co-founder Steve Jobs comes back to his position as CEO. Mr. Jobs recently stepped down from his position for medical reasons. Investors feel so tied to Jobs and his leadership of Apple, that the price of shares of the company dropped with this announcement.
Now your company probably is not in the same league as Apple, but if you are a founder of a company or part of a family run company and are crucial to its day to day activities – or even its survival, then it is essential to have a plan to ensure that your business survives you. Lawyer Peter Lillico gives these hints, published in an article in the Globe and Mail, (Wednesday, January 19, 2011, p.B10) entitled "Planning for the loss of a leader" by Richard Blackwell.
- Buy disability insurance and "key man" insurance.
- Have a succession plan.
- Make up a separate will and power of attorney for your business
- Have a partnership/shareholder agreement that spells out what happens
Read up on this subject with books from the Toronto Public Library collection:
Succession planning kit for Canadian business by Lynne Butler
Tax and family business succession planning by David Lewis
and
Ensure your company's life for another lifetime.
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