Every year we renew our home insurance, car insurance, life insurance etc. to cover an occurrence with may or may not happen as a safeguard or a ‘just in case’. As a business or company owner you try to cover all aspect of safeguarding your assets but it is also important to consider what may happen if at any point during your lifetime you start to lose mental capacity.
What would happen to the running of your business or company?
Who would run your financial affairs?
What would be determined for your employees?
A commercial Lasting Power of Attorney (LPA) is the answer to these questions. The LPA document is essential to confirm your company or business will keep running smoothly and to ensure all commercial matters are carried out as they should be. Without an LPA fundamental aspects of your company or business may cease to operate; access to your accounts may be denied, suppliers or third parties may not be paid, contracts may not be completed and your employees may not be paid.
Making a Lasting Power of Attorney could be the answer to successful succession of the running of your company or business when you are no longer able to do so.
What is an LPA?
A Lasting Power of Attorney (LPA) is a Legal Document that allows you to appoint someone else to act on your behalf or make a decision for you when you are unable.
There are two types of LPA document – Property & Finance and Health & Welfare. A Health & Welfare power allows your attorney(s) to make decisions only about your health and wellbeing if you do not have the mental capacity to do so. A Property & Finance power is what you will need for your business or company.
A Property & Finance LPA will allow your attorney(s) to carry out specific tasks appointed to them by you when you no longer have capacity to do so. This LPA document is flexible and can be also be used onset of loss of mental capacity i.e. if you are away or ill.
Your company or business and LPAs
If you decide an LPA is right for you and your company or business the first step to take is a review of your business’ or company’s Articles of Association and any shareholders or partnership agreements followed by making a decision on whom your attorney(s) will be. The document will then be prepared and registered with the Office of the Public Guardian to have effect.
If you then lose capacity your business or company will be ‘safe’ and continue running effectively regardless of your business’ or company’s size, turnover, number of employees . An LPA could be the answer to your business’ or company’s continuity plan for succession.
For advice on Lasting Powers of Attorney contact our team on 0800 015 0340 to arrange an initial at any of our offices in Huddersfield, Halifax, Wakefield, Horbury, Leeds, Pudsey or Morley.