It is important for all business owners, whether they are sole traders, partners or company directors to consider how their incapacity (even if only temporary) would have a significant impact on their business. For example, third parties could not be paid, stock could not be purchased and nobody would be authorised to control the business’ bank accounts.
Many business owners may believe that family members, or employees, would be able to deal with the running of their business whilst they are unable to do so. However, this is not necessarily the case, as in the eyes of the law they will not have authority to do so.
A business Lasting Power of Attorney (LPA) is an important document in this regard. The business LPA will appoint Attorneys to deal with business matters and ensure business continuity in the event that the business owner is unable to work. Subsequently, the Attorneys would be able to pay the bills, sign cheques, make loan repayments and pay salaries.
The business LPA can sit alongside a personal LPA dealing with the business owner’s personal property and finances.
If you would like more information as to whether a business LPA might be right for you then Beers Solicitors would be happy to help. Please call us on 01752 246 000.