Lasting Power of Attorney (LPA) for Your Business
If you own a business then you should make a separate Lasting Power of Attorney for Property and Financial Affairs in relation to the business only. You should also have a separate Property Financial Affairs LPA for your personal affairs.
- This applies to Sole Proprietors, Partnerships and Limited Companies.
- Your Partnership or Shareholder agreements and Articles of Association should cover any such eventuality. They should note your intentions e.g. secure business longevity, or wind up, sell etc.
- Your choice of Attorney(s) is crucial. He/she should be someone who is capable and familiar with the business and its objectives. Ideally, with a similar outlook and knowledge about the business as you.
- You need to consult with the other Partner, Directors, etc. It is always a good idea to tell the other key people in your business about who you have appointed as your attorney(s), should you lose capacity or become incapacitated. And how you would like the business to be dealt with.
- Once your LPA has been registered with the office of the Public Guardian, your attorneys can then make decisions on matters such as business banking, contracts, suppliers insurances, employees, salaries and costs, marketing, advertising, administration etc.
Without an LPA for the business the other partners in the business are powerless to make any decisions. They cannot remove you from the business due to the Mental Health (Discrimination) Act 2013. The only option they would have is to apply to the Court of Protection for a Deputyship Order. This can not only take months but can an also result in the business suffering losses. In addition to this, there is also costs involved to obtain a Deputyship to consider and, they can be very costly. Click here to read our blog about Lasting of Powers of Attorney which outlines the cost of a Deputyship Order.
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