Have you considered what would happen to your business if you weren’t able to manage its affairs?
Putting a Business Lasting Power of Attorney (LPA) in place is just one way to make sure your day to day business can continue if you were to lose capacity, even for a temporary period of time.
Just like a Lasting Power of Attorney for your personal affairs, whether that be for Property and Finance or Health and Welfare, an LPA for your business allows decisions to be made on your behalf by an appointee in the event you do not have the mental capacity to make those decisions anymore.
That being the case, if you didn’t have a Business LPA the following situations could soon cause severe disruption to the business:
- Your bank account could be frozen meaning regular payments may not be made, including salaries and bonuses to staff
- With a signatory unable to sign on the business bank accounts, suppliers may not be paid and cash could be withdrawn. The company's suppliers could be left without payment and therefore refuse to send further products
- Without the authorised company signature, the business could be prevented from entering new contracts, paying invoices, buying stock and authorising sales
- Your insurance cover could be affected
- If your business falls under a regulated capacity, a professional body could get involved in handling your business affairs
Generally speaking if you can’t continue to run your business, either through being physically or mentally incapable, (or by simply being out of the country for long periods of time) it is important that somebody has the authority to act on your behalf in relation to your business interests.
Please get in touch to discuss how a Business LPA might help your business.