Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
IMG 7894 644 - Business Express
Cropped image of business partners carrying briefcases on the foreground while their colleague standing on the background

Lasting Power of Attorney for Business Owners

By Sue Wakefield, Director at ZEDRA

You may have heard of Lasting Powers of Attorney (LPAs) for managing personal affairs like health or to oversee personal finances, but did you know you can create a Lasting Power of Attorney for your business too?

One of the lessons learned from the pandemic is not to assume Lasting Powers of Attorney are just for the elderly and only useful when people lose mental capacity. The sad reality of much younger people being incapacitated or hospitalised and unable to deal with their finances has seen an increase in demand for Lasting Powers of Attorney amongst the younger generation – particularly those who own their own businesses.

Why do business owners need a Lasting Power of Attorney?

A Lasting Power of Attorney allows nominated Attorneys to make decisions on your behalf. For business owners – especially small business owners with employees, and the self-employed or sole traders – ensuring the business is protected from your incapacity is vital.

Business Hybrid Lasting Power of Attorney

There are two types of Lasting Power of Attorney widely utilised; one covering Property and Financial Affairs and one to deal with Health and Welfare issues. A hybrid of the Property and Financial Affairs LPA is one drafted specifically to cover business interests and may have different Attorneys appointed than those chosen to deal with personal finances in view of the various tasks associated with running a business such as financing, accounts, property matters, staff, payroll, production etc. that may require attention.

What happens if I don’t have a Business LPA?

The reality of a business owner being unable to continue the day to day running of their business is very concerning and often overlooked. Who would assume control or have the authority to make decisions should a business owner be unable to? This is clearly a risk to the business.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Without a Business LPA in place, an application to the Court of Protection to appoint a Deputy would have to be made. There would be no guarantee that the Court would appoint the person you would have chosen, and the process is usually time consuming and costly.

How long do Deputyship applications take?

Deputyship applications can take up to six months and during this period the business would be frozen meaning invoices and insurances going unpaid.

Ensuring business continuity

When drafting Business LPAs it is important to consider a company’s articles of association or a partnership agreement that may be in place as these may already deal with incapacity; however sole traders or the self-employed may have no such arrangements in place.

It is also important to draft bespoke and detailed instructions as to the powers and duties the Business Attorney will have and, of course, to ensure that the choice of Business Attorney is made carefully, with due consideration and with the agreement of the person being chosen to act.

Putting a Business LPA in place should be an integral part of a Business Continuity or Disaster Plan and will bring peace of mind to business owners and their families alike.

For more information on business LPAs and how we can help you to protect your business, please contact us.

Recent Post: