Lasting Powers of Attorneys: Business owner edition
A Lasting Power of Attorney (LPA) for your property and finances is an invaluable, proactive tool in planning for your future.
It enables your chosen Attorneys to make decisions on your behalf once you have lost capacity and even before then so long as they have your consent.
If you have lost capacity and do not have an LPA, anyone seeking to act on your behalf needs to apply to the court. This can be a costly and lengthy process as well an unwelcome hurdle for anyone running a business.
If you own all or part of a business, you may not know that you can have a Business LPA separate to your personal property and financial LPA. This enables you to choose the best attorneys for the job:
A family member may be the best candidate to assist with your personal finances but not for your business affairs.
Likewise, a co-Partner or fellow Shareholder may be the best choice to act on your behalf when making business decisions but not for family matters.
Unfortunately, you cannot appoint attorneys for one and attorneys for the other within one single LPA. You therefore would need two LPAs.
For any business, it is important that:
• decisions can be made quickly,
• client and supplier relations are maintained,
• stability is maintained, and
• the business’ reputation is protected.
A temporary or permanent lack of capacity which prevents you from participating in these decisions can quickly derail matters.
A lack of LPA to cover your business can leave it exposed. Partners, clients, suppliers and employees could face uncertainty and the business may be unable to operate effectively.
A Business LPA provides clarity, protection and continuity. It can ensure your business can continue to function smoothly even if you cannot manage it yourself.
At Bowcock Cuerden our Business LPAs are tailor-made. We ensure that your LPA will meet your Business needs, its decision-making structure and in line with the formal Agreements in place.
For more information, please contact our Private Client team on 01270 611106 and ask for Selina Pavey or Mollie O’Connor.
(This article is not intended to be comprehensive or to provide specific legal advice. It should not be relied upon in the absence of specific advice given in relation to particular circumstances.)
