Have you EVER considered what would happen to your business if you were suddenly unable to manage it yourself? WHO would be legally entitled and able to manage the day to day running of your business should you lose mental capacity?
Business Lasting Powers of Attorney (LPAs) allow the donor (the business owner) to appoint a suitable attorney to make decisions concerning their business interests when they’re unavailable OR lack mental capacity to manage it.
If there is no business LPA in place, you may be putting your business at risk. Just as a few examples:
…..If one of your bank account signatories lacks capacity, the bank could potentially freeze the account to protect the now vulnerable adult…and if there is an overdraft attached to your business, the possibility of the bank freezing the account is higher!
…..Any contracts entered into by a person who had capacity, but now lacks capacity, may become unenforceable owing to their incapacity.
…..Paying creditors, employees or tax becomes difficult as does running the business generally with a businessperson who now lacks capacity.
…..Investors may require their investments to be returned.
By appointing a business LPA attorney, these issues may not arise and you can be reassured you are doing your utmost to safeguard your business.
If you lost the ability to manage your business without a business LPA in place, an application would need to be made to the Court of Protection to have a deputy appointed. This might take months (or even longer!), during which time the business is exposed to uncertainty of survival. Also bear in mind the person chosen to manage your business will be picked by the Courts and might not be the person you’d ideally want managing your affairs……
Michael Wadsworth is a Director of Wadsworths and head of our Wills and LPA Department. With over 16 years of experience in this field and thousands of happy clients, Michael is able to advise on the best way forward to protect your business and personal affairs and get an LPA in place.
To make an appointment or to speak with a member of the team, please call 0121 745 8550 or email firstname.lastname@example.org.