Share options and Wills

I have a situation whereby a testator has an interest in a Limited Company (Director and shareholder) and has set up a Shareholder’s Agreement and Cross Option Agreement which would enable one of the other shareholders in the Company to purchase the testator’s share (there are 4 shareholders in total, one being the testator) within a period of 2 years following the testator’s death. If such option is not exercised then it will lapse. How do others draft a Will in this situation? Do you have any specific clauses that need to be included. I cannot find anything on PLC with regard to specific clauses nor in the books that I have.

Any help would be much appreciated.

I don’t see why you would need any special provisions as the two agreements you mention would be binding on the executors. They would not have to do anything other than sell as required, which would be covered by the usual/statutory powers.

You may want to ensure that they have a reasonable indemnity that would cover them if there is to be any negotiation on values.

The only implication I can think of is that (depending on the terms and others’ intentions) the executors may be stuck with the shares for two years, until the option lapses.