Business Lasting
Power of Attorney

If you’re a business owner, your business could be paralysed if you’re unable to make decisions through ill health or incapacity. A Business Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone to make those decisions for you, and enable continuity of business.

There can be many reasons you might be unable to make decisions – such as being abroad on holiday or business, having an accident or a medical condition or treatment that meant you were incapacitated – but in such a situation, who would authorise payments, sign cheques, service a business loan or pay salaries?

With a Business LPA in place, you can avoid all those potential problems, with someone you trust able to pay suppliers, sign contracts, manage company accounts and payroll, make key decisions and even sell or merge the business if necessary.

Is a Business LPA right for you?

It depends on the type of business you have.

Sole traders

If you’re a sole trader, your business relies heavily on you, and has a simple legal structure. That means a Business LPA would be ideal to keep your business going if you’re incapacitated.

Business partners

Here, your partnership agreement may already outline provision if any of the partners is unable to carry out their duties. In this case, a Business LPA may not be right, but if you’re not sure we can advise you on whether or not you need one.

Company directors

With a number of directors, check the company’s articles of association, which may specify a director’s appointment being terminated if they lose capacity. If that’s the case, a Business LPA may prove useful if it’s just a temporary incapacity or absence, or if you want to preserve your decision-making rights within the company – we can advise you on that. If you’re the sole director of a small company with no-one else to run it in your absence, a Business LPA is ideal.

Whatever your situation, we can provide support and legal advice to help you put a comprehensive contingency plan in place to ensure business continuity.