With a qualified and experienced team, we have helped 1000 companies across the UK. Do you want to know more? Call us today and we can guide you through the process and offer you shareholder protection insurance. If one party wishes to exercise its choice, the other party must comply. Options can only be exercised after death and there will be a certain option period. Second, this agreement in turn offers relatives a willing buyer and cash instead of shares or participation in the transaction, which could create problems of their own. A duly developed cross-option agreement, with associated maturity guidelines, not only ensures that the beneficiaries of a deceased shareholder can derive value from the business, but also does so in a way that is both fiscally efficient and results in minimal disruption to the remaining shareholders. The recent case of Griffin -v- Citibank Investments Ltd (2000) provides an even stronger argument that a put and call option in identical terms does not constitute a single bilateral contract. The case had nothing to do with shareholder share purchase agreements, but involved two identical options and is therefore of particular importance. It is therefore generally accepted that the Griffin case puts an end to speculation as to whether or not there is no contract for the sale of commercial immovable property relevant to inheritance tax, and that a put and call option in identical terms constitutes a single bilateral contract.
This relatively unreported case is therefore of considerable importance for financial advisors, especially those who provide advice on corporate protection agreements. There is an “option” for both parties to the agreement.