Can your business survive without you?

Business owners, partners and sole traders… Safeguarding the future of your enterprise 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 Lasting Powers of Attorney can allow the people you choose as your attorneys to make financial decisions on your behalf - but care is needed. There can be legal barriers to a proxy acting on your behalf. A limited company is a separate legal personalty, and not all business decisions can be delegated. Your accountant will be a good source of advice and guidance.

It is essential that every attorney fully understands their responsibilities, whether they are appointed for your personal property and financial affairs or to manage elements of your business. For example, an attorney may need to take out their own personal liability insurance to protect them whilst acting. Clearly they should 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, especially for sole traders.

Is it time to consider a commercial LPA as part of your business continuity plan?

Contact us today for more information.