When running a business, it is hard to plan for the future because the immediate needs take over your attention. There are risks to any business if there is no one to run your business in your absence either by being abroad or lacking mental capacity. Any business needs to make sure that there is contingency to ensure someone can pay the invoices or salaries and complete on transactions.
Partners and company directors should check their governing documents about how they deal with incapacity issues. This is important to avoid the risk of discrimination issues and to ensure that delegation of authority is permitted.Sole traders must also make sure there is provision for continuity in their absence as this could threaten the business’ existence.
A Lasting Power of Attorney is a document allowing you (the donor) to appoint an attorney to make decisions on your behalf. There are two types of Lasting powers of Attorney; one for Financial Decisions and one for Health and Welfare Decisions.
The appointment of an attorney will depend on your circumstances but if those involved in the business did not want your family members to interfere in the business, it is possible to create a Lasting Power of Attorney for Financial Decisions to deal with the business affairs and this is commonly referred to as a Business Lasting Power of Attorney. It is also possible to create another Lasting Power of Attorney to deal with your non-business assets. Without a Lasting Power of Attorney, there are considerable delays and costs in appointing a Deputy (a person authorised through the Court of Protection).
You will not lose control by creating this document but ensure you have those you want dealing with your business interests in your absence.
Contact Anna Fowler-Guest at Scott Fowler Solicitors for more information on 01604 750506.