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AS a business owner it is very important to consider what would happen to the day-to-day running of your business if you were not able to make decisions.
This could be because of incapacity, being diagnosed with an illness, an accident or simply being unavailable because you are out of the country for a length of time.
If any of these situations were to arise and you didn’t have a Lasting Power of Attorney in place, an application would have to be made to the Court of Protection. This is an expensive process and lengthy and in the meantime no one would be able to make important decisions on your behalf.
Also, the Court could appoint someone who you would not have chosen for the role.
Making a business Lasting Power of Attorney provides protection for your business as you are able to appoint trusted people to act as your attorney if necessary.
Many business owners will already have Lasting Powers of Attorney in place to cover their personal finance and property and also for health matters, often appointing spouses and children.
Relatives may not be suitably qualified to make important business decisions if they are not involved in the running of the business. It is possible to have more than one Lasting Power of Attorney so you can appoint the most appropriate people for each position.
A business LPA is suitable for different types of business:
Sole Traders – The business is not legally separate from the owner and the owner not being able to make decisions could have a devastating impact on the business.
Partnerships – Some partnership agreements may already deal with the issue of incapacity but it is sensible to check and if not to seek professional advice on putting a business LPA in place.
Directors of Companies – Directors should check their Articles of Association and take professional advice. It may be that all the Directors should consider making a business Lasting power of Attorney.
To ensure there is no disruption to the smooth running of your business you should give serious consideration to putting a Business Lasting Power of Attorney in place.
Our private client team will be able to prepare documents appropriate for your business. Call Jill Waddington on 01457 761320 to arrange an appointment.