Business Lasting Powers of Attorney
More and more people are now appreciating the importance of preparing Lasting Powers of Attorney ensuring that trusted individuals can, in the event of unforeseen events, make decisions about their personal affairs, whether concerning their finances and/or their health and welfare.
However, far fewer people consider the benefits of an additional Business LPA and the consequences of a key individual within said business suddenly being temporarily or permanently unable to act. Especially in these turbulent times we find ourselves, many businesses are having to evolve, adapting to an ever changing playing field. The tried and tested regimes relied upon previously are suddenly stretched by self-isolation requirements, by travel restrictions whether abroad or closer to home, or perhaps a prolonged illness or lack of capacity. A Business LPA could be equally adept at solving the smaller operational issues or indeed the larger more strategic ones.
In a business partnership, a “Partnership Agreement” may include provisions to deal with the above dangers. Equally, a “Shareholders Agreement” will assist Limited Companies. However, in their absence, a Business LPA could appoint fellow Partners or Shareholders to act as Attorneys for each other.
If the individual is a sole trader then they should certainly consider preparing one as the business is effectively them.
Without a Business LPA, it would be necessary to make a costly and time consuming application to The Court of Protection. They would then be tasked with deciding whom should be appointed to act. This application could take months to conclude thus affecting the stability of your business and potentially its very existence.
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