As a business owner, you have probably invested a lot of time and energy to get your business to where it is now. So, it is important that you take steps to ensure it does not grind to a halt if you unexpectedly lose capacity.
We often assume that capacity is an issue for the retired. However, it is important to consider who would be able to sign documents on your behalf, pay the company bills and staff wages, or buy stock, if your condition deteriorates unexpectedly through accident or illness.
What steps can I take?
Surprisingly, the way to minimise the possibility of your business suffering is relatively simple. A Commercial Lasting Power of Attorney (LPA) gives you the ability to appoint someone you trust to make business decisions on your behalf. It allows you to choose:
- the decisions they can make;
- who will make them;
- and how you wish them to make these decisions.
When thinking about a Commercial LPA you should:
- Consider the company’s memorandum and articles, or the partnership agreement, as planning now will save the need to amend the particulars in the future.
- Ensure that the attorney(s) you appoint to act on your behalf have the appropriate skills to make the decisions.
- Register the document with the Office of Public Guardian as soon as possible as it only comes into force once this has been done.
- Seek advice to ensure you understand the process and implications.
What happens if I don’t have a Commercial LPA?
If you lose capacity to make decisions and you don’t have a Commercial LPA in place, an application to the Court of Protection would need to be made for someone to run your business. This can be a slow and expensive procedure and often a business will experience operating difficulties during the application and processing period.
To start a conversation about how we can help you to get the outcome you want
Call us on +44 (0)345 521 4545 or send an email.