27 April 2026
Running a business means making decisions every day, often quickly and under pressure. But few business owners take the time to consider what would happen if they were suddenly unable to make those decisions. Having the right safeguards in place can make all the difference in protecting the future of the business.
What is a Business LPA
A Business Lasting Power of Attorney (LPA) allows you to appoint someone you trust to step in and make decisions about your business if you lose mental capacity.
This could be due to illness, an accident or a temporary medical issue. While many people associate LPAs with later life planning, they are just as relevant for anyone involved in running a business.
Why it matters
Without a Business LPA, there is no automatic right for someone else to take over your role.
For company directors, this can create real challenges. Even where there are other directors, their authority to act may be limited depending on the company’s governing documents. This can delay key decisions, from signing contracts to accessing business accounts.
For sole traders, the position can be even more difficult. If you are the only person running the business, it may simply not be able to operate until the issue is resolved.
In some cases, families or colleagues may need to apply to the Court of Protection for authority to act. This can be a lengthy and costly process at a time when the business needs quick decisions.
What decisions can your attorney make
A Business LPA can cover a wide range of day to day and strategic decisions.
This might include managing bank accounts, paying staff and suppliers, entering into contracts and keeping the business running smoothly. You can tailor the document, so it only relates to your business interests, keeping it separate from your personal affairs.
Choosing the right person
Appointing an attorney is an important decision. It should be someone you trust, who understands how your business operates and is comfortable making commercial decisions.
Depending on your circumstances, you may choose a fellow director, a senior employee or even a professional adviser. Some business owners prefer to appoint more than one person so that decisions can be made jointly.
Making sure everything works together
It is important that your Business LPA fits with your wider business arrangements. Your articles of association, shareholder agreement or partnership agreement should be reviewed to ensure there are no conflicts.
Taking advice at an early stage can help ensure everything works together as intended.
A simple step that offers real protection
Putting a Business LPA in place is straightforward, but it can have a significant impact. It helps protect the continuity of your business and provides reassurance to employees, clients and stakeholders.
Most importantly, it means that if something unexpected does happen, there is someone ready and able to step in without delay.
For more information or to discuss putting a Business Lasting Power of Attorney in place, please contact Niamh Minihane in our Wills, Trusts and Probate team on 01628 962262 or email niamh.minihane@blasermills.co.uk.