As a business owner have you ever wondered who would run your business in your absence, through either illness or accident? – The answer is a Business Lasting Power of Attorney (LPA).
Business continuity is one of the key elements in business planning, and is valid whether you are a Sole Trader, Partner, or Company Director where your main objective is to ensure the efficient running of the business in the event of any disruption which could happen if you became incapable of running, or making decisions about your business. This could be due to physical or mental incapacity, or simply because of your personal circumstances or being out of the country on holiday.
Business Lasting Powers of Attorney (LPA)
If you have a business and you became ill, or have a major accident, you might find that your absence makes it difficult for your business to operate efficiently. Who could you trust to look after finances, such as paying staff & invoices, and to make decisions on your behalf if you were in hospital? Worse still if you lost mental capacity you and your business would be at the mercy of the Court of Protection, who would appoint a Deputy to run your affairs, which would not only be costly but take months to set up. Would you want your affairs run by a stranger, and would your business still be in a sound financial position?
Other issues to consider are what would your bank’s response be to your illness/accident?They may call in loans, freeze bank accounts etc, but by having an LPA in place for your business interests should help to head off these problems before they even surface.
A Lasting Power of Attorney (Business) is a necessity for all business owners. You can have two LPA’s (property), one appointing attorneys to act on your behalf within your business, another, probably appointing different attorneys, to act on your behalf in regards to your domestic financial affairs.
Your other option - leave it to the Court of Protection to appoint somebody they choose when the time comes, this is not only time consuming but expensive, and not the suggested route.