Business Lasting Power of Attorney
A business lasting power of attorney (BLPA) is a method by which a business owner can legally authorise a person or persons to make decisions on their behalf if they are unable to do so. Thereby ensuring a business is able to operate and that the business’s interests are protected when they face adverse circumstances.
It is important for a business owner to consider what will happen to the business if the owner, director, partner or another person with significant control was either:-
- involved in an accident, or
- suffered from a medical condition that incapacitated them
Appointing a business power of attorney enables business continuity without significant delay or damage to reputation. A business power of attorney would enable an attorney to pay bills, contractors and salaries, sign
cheques, manage business relationships and execute business development plans. Therefore a Business Lasting Power of Attorney protects customers, employees and the business’ reputation.
What type of business requires a BLPA?
- Sole Trader
All types of business owners can appoint a power of attorney to provide protection to their business. Some partnership agreements/articles of association documents may include a provision for physical psychological absence. Nevertheless, most articles and agreements that are used (including standard modal articles and partnership agreements) are inadequate and do not include sufficient terms for a legally compliant provision. In addition to this, changes in the law such as the Mental Capacity Act, may mean that your current terms are null and void, resulting in no adequate provision being in place. If you are unsure of whether your articles/agreements are sufficient, contact us for review and advice in respect of the same.
What happens if you do not appoint a business power of attorney?
If you do not appoint a business power of attorney, and your partnership agreement or articles of association, fall short of the requisite clause no person will be able to conduct the day to day duties that your business requires to operate. In order for an alternative person to be appointed, a court application must be made whereby the Court of Protection will appoint an attorney on your behalf.
This can be complex, costly and lengthy procedure (an average of 9-12 months) in this time your business reputation may be damaged. You could lose clients, employees as well as an irreparable damage to business relationships.
Who should a business owner appoint as an attorney?
A business owner must take a number of factors into consideration when appointing a Business Power of Attorney. These include appointing:-
- A person that the business owner trusts, and
- A person with the requisite skill set
The type of business that you run may require you to appoint a particular type of attorney.
In order to obtain further information about our business lasting power of attorney service contact us today on 0161 943 4124.
Last updated on 1 July 2020
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