Can your business survive without you?
Business owners, directors, partners and sole traders… Safeguarding the future of your business with a Lasting Power of Attorney makes good business sense.
Who would take over the running of the business and its financial and property affairs if you were incapacitated by illness or injury?
You may have an informal agreement with your business colleagues about what would happen should illness or injury take one of you away from the business, but legally this may not be sufficient. Unless you have appointed an attorney, fundamental business operations may not be possible. The consequences could be loss of access to business bank accountss, your suppliers might not get paid, contracts could be lost, insurance premiums might not be renewed and your employees could be left without income. The disruption could be immediate and catastrophic.
A Lasting Power of Attorney (LPA) can be used specifically to appoint attorneys to deal with business matters and ensure business continuity in the event that you are unable to work. Specialist advice about a commercial LPA is essential as there will be important legal considerations: who would be a suitable attorney, will an attorney’s appointment affect the balance of power within your organisation, are there limitations or restrictions in your company’s Articles of Association that need to be altered by a special resolution?
Making a business Lasting Power of Attorney
A registered business LPA will allow your attorney to make financial decisions on your behalf, including buying and selling business property, organising property insurance and repairs, accessing business bank statements, opening and closing bank accounts, investing assets, and dealing with tax affairs.
It is essential that your attorney fully understands their responsibilities. For example, they should take out their own personal liability insurance to protect them whilst acting in the capacity of an attorney. They must have the skills and ability to carry out the necessary tasks.
If you or a key member of your team suffer a serious illness or are out of action for a period of time, with a business LPA you and your business will retain control. It really does make good business sense, irrespective of the size of your company.
Is it time to make a commercial LPA the cornerstone of your business continuity plan? Contact us today for more information.
