Why is a Commercial Lasting Power of Attorney vital to my business?
There can often be periods in which you may be unable to make decisions relating to your business, be that ill health, incapacity or simply being on holiday. In those circumstances, it is absolutely imperative to ensure that you can have somebody you trust to be able to step into your shoes and keep your business running in your absence.
What is it?
Ordinarily, a Lasting Power of Attorney (“LPA”) would give individuals of your choosing the ability to make decisions (with your Consent, until you lose mental capacity) regarding your personal financial and property affairs. However, it is wise to implement a separate LPA to appoint people to make decisions regarding your business/company.
How would it help my Business?
In reality, businesses can be severely stung, if, for example, a bank account signatory is unable to sign. The risks included the freezing of such accounts, spiralling of overdraft facilities, contracts could become unenforceable by virtue of someone’s incapacity, and paying creditors etc could all become extremely difficult. A Commercial LPA could reduce or even extinguish all such risks, and could even be used to retire a business owner or director to help safeguard the business.
Most businesses plan for high risk events, but often overlook something as simple as what would happen if any of the owners were unable to make decisions or access accounts, and that can have devastating consequences. You would, with a commercial LPA be able to appoint suitably trusted and skilled individuals to ensure that if something happened to a key person, the business could continue as usual in the interim.
The cost implications far outweigh the costs involved in putting a Commercial LPA in place, and avoid the need to apply for a Deputyship Order or similar from the Court of Protection (which could take up to 6 months in some cases). One key consideration is that you would not be simply giving someone free-reign over your affairs, as they would only be able to act with your consent until you lost capacity. In that sense, you can see this form of LPA as a convenience to use when you may be unavailable to sign documents, mandates or other papers, and instead your chosen Attorney can assist.
How do I put one in place?!
Our expert Commercial and Private Client teams are readily available to assist with putting Commercial LPA’s into place. If you do want to discuss the commercial sensibility and value of this form of business protection, contact our James Ford or Sean Devlin on 01942 246 241 and we will gladly assist. Commercial LPA’s are different to ordinary LPA’s, and it is crucial that you are advised by an experienced specialist.
Let us help you protect your business.