What they are
Most people are aware of Lasting Powers of Attorney (LPAs). These are legal documents which allow an individual or individuals referred to as your attorneys to manage your affairs. You can appoint your attorneys to either manage your ‘Property and Financial’ or ‘Health and Welfare’ affairs.
A Business LPA is a useful document which allows a business owner to appoint an attorney or attorneys to make decisions in the best interests of the organisation should the owner become mentally incapacitated, is abroad on holiday or business or has had an accident and does not have the capabilities to make a decision.
Business Lasting Powers of Attorney can be useful for business either as Sole Traders, Limited Liability Partnerships, Traditional Partnerships and Directors.
What they do
The Business LPA would allow the appointed individuals or individuals to make decisions such as authorising the payment of invoices, signing company cheques, instructing employees to perform key tasks, employing new members of staff and dealing with the daily business activities.
Who to appoint
It is advisable that the attorney is familiar with the business and is someone who can be entrusted with the affairs of the business. The attorney should be someone who is confident, trustworthy, competent, reliable and can undertake the tasks to manage the business in the absence of the owner.
In the best interests of the business it may be pertinent to appoint two attorneys- one to deal with the dealings / everyday activities of the business (e.g. business accountant or employee) and the other attorney who deals with the personal financial issues (e.g. a member of the family).
The Implications of not preparing a business lasting power of attorney
If there is no business lasting powers of attorney in place, this could prove to be extremely detrimental to the business. If this is the case and there is an absence of a business lasting power of attorney, an application would need to made and submitted to the Court of Protection which is time consuming and expensive. During this period, the business may suffer with no one in person to manage the daily affairs.
If you need advice in respect of these documents, please do not hesitate to contact the Wills, Trusts and Probate team on 0203 814 2020 or email enquiries@blasermills.co.uk.