Business Power of Attorney Keily Legal
Business Power of Attorney Keily Legal

Business Power of Attorney

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The cornerstone of an
effective business continuity plan.

What is a Business Lasting Power of Attorney

Business Power of Attorney Keily Legal

A Business Lasting Power of Attorney is a legal document which allows you to give another person (your attorney) authority to make decisions on your behalf. There are two types of LPA, one in respect of health and welfare decisions, and one for property and financial affairs.

A Business Lasting Power of Attorney (BLPA) is the one you need for your business. Once registered with the Office of the Public Guardian, it will allow your attorney to deal with property and finances, and is a flexible document that may be used before the onset of any mental incapacity (if you want it to) as well as lasting beyond.

If you lose capacity and do not have an LPA, it may become necessary for an application to be made to the Court of Protection for an order appointing someone else to act on your behalf. This can be expensive and time consuming. Appointing an attorney via the LPA to deal with property and financial affairs is a useful precaution against future incapacity. If you do not restrict the power, then your attorney can use the document to act at your direction if you are out of the country or physically incapacitated.

The decisions that you authorise your attorneys to make can be either in relation to your finances, for which an LPA for property and affairs will be created.

An BLPA is a very important document, as it ensures continuity in the management of your life and your finances, should you become unwell or lose the capacity to make decisions.

Perhaps you feel that an LPA is not necessary, and assume that family members can step in, when necessary, to make decisions. But this is not the case; family members do not have the automatic right to make decisions on your behalf.

Benefits of a Business
Lasting Power Of Attorney (BLPA)

Peace of mind that you have put in place a legal mechanism to deal with your business interests (note for companies it is imperative to check the articles of association, for partnerships check the partnership agreement or, if none, the Partnership Act 1980 will come into play, to ensure the LPA is consistent with these) if you are incapacitated, unavailable or lacking mental capacity.

The ability to limit the powers to deal with your business interests as you see fit through the LPA.

The knowledge that your business will keep ticking over so that, for example, important decisions can be made, wages can be paid, stock purchased etc.

The safeguard that through the LPA your attorneys need to act in your best interests, encourage you to make decisions for yourself (if you can), act in good faith and, if in a professional capacity, according to the standards of skill and care expected of a person in that profession.

You can choose whether you wish to pay the attorney e.g. professional attorneys such as solicitors and accountants would charge for their services and if you wish to appoint to pay a non-professional attorney, you can record this in the LPA.

Business LPAs are especially useful for directors, due to recent changes making it difficult to remove a director who has lost capacity.

WHY Business LPA’s are a valuable insurance
and IS VITAL FOR YOUR BUSINESS

As a business owner what steps have your business partners and you taken to protect your business and your respective families in the event of your death or critical illness or mental/physical incapacity?

Keily Legal Business LPAs Business Power of Attorney Keily LegalWithout the full and proper protection in place, you are leaving your business and your family exposed not only to the taxman but also to potential financial disaster.

Unexpected incapacity of a Business owner can cause financial and operational difficulties for a business. It could, for example, result in no-one having authority to control the business account.

Have you considered what might happen to the business if you were to lose your mental capacity by illness or injury or if you were stranded abroad because of delay or extreme weather conditions? or if something happens to you? Who would take over the running of the business on your behalf, sign contracts, pay salaries and suppliers, write cheques and make the important day-to-day decisions to keep the business going. Worryingly, many financial institutions respond to a business owner’s lack of capacity by freezing bank accounts.

The aim of all the business owners is to make their business a success and to provide for their families and their loved ones. You work very hard, commit time and money to your business and have employees and suppliers who are all depending on you. You and they have families who need your financial support and security.