When running a business, unforeseen circumstances can arise that may affect your ability to manage your company’s affairs. A Business Lasting Power of Attorney (LPA) is a valuable legal tool that allows you to appoint trusted individuals to make decisions on your behalf if you become unable to do so yourself. At Beers, we guide our business clients across Devon through this important planning process to ensure peace of mind and continuity.
What is a Business Lasting Power of Attorney?
A Business LPA is a specific type of Lasting Power of Attorney that grants someone (known as your attorney) the authority to manage your business matters. This can include making financial decisions, signing contracts, handling banking, and managing day-to-day operations.
Unlike a personal LPA, which covers health and welfare or personal finances, a Business LPA focuses solely on your commercial interests.
Why Should Business Owners Consider a Business LPA?
● Continuity and Stability: If you become incapacitated or unavailable for any reason, a Business LPA ensures your company continues to operate smoothly without disruption.
● Protecting Your Interests: You can choose reliable people such as business partners, family members, or professional advisors to safeguard your business interests.
● Avoiding Court Intervention: Without an LPA, the court may appoint a deputy to manage your affairs, which can be time-consuming and costly, and that deputy may not be the most appropriate person to manage your business affairs.
● Tailored Authority: You can specify what powers your attorney has and when they can exercise them.
How Does the Process Work?
1. Choosing Your Attorney(s): Select one or more trusted individuals to act on your behalf. You can appoint joint or separate attorneys depending on your preferences.
2. Defining Powers and Restrictions: Clearly outline the scope of authority and any conditions or limitations.
3. Registering the LPA: The LPA must be registered with the Office of the Public Guardian before it can be used.
4. Activation: The LPA comes into effect either immediately or only when you lose capacity, depending on your instructions.
Key Considerations
● Regularly review your Business LPA to ensure it remains up to date with your business structure and relationships.
● Ensure your attorneys understand their duties and responsibilities.
● Consider how a Business LPA fits within your broader succession or contingency planning.
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Need Help Setting Up a Business Lasting Power of Attorney?
At Beers, we offer clear, tailored advice to help business owners protect their interests and plan for the future. Whether you run a small family business or a larger commercial operation, we can guide you through setting up a Business LPA that works for you.
Contact our Kingsbridge or Plymouth offices to discuss your business planning needs.
Kingsbridge: 01548 857000
Plymouth: 01752 246000
E-mail: info@beersllp.com