There has been much focus on Lasting Power of Attorney (LPAs) recently, especially as they are important for those who have lost capacity and require people they trust to manage their affairs.  There has been less talk about LPAs for businesses which can provide protection for a business owner, providing a safety net should something happen.

Without an LPA in place, the Court of Protection will need to appoint a deputy, which can take time, meaning a business could quickly end up without access to bank accounts or the ability to make important decisions.   It is also expensive for a deputy to be appointed, which can cause further stress to the business.

If a business LPA is in place, the nominated person, the attorney, will be able to temporarily take over the running of the businesses with the ability to deal with important decisions and sign contracts.

Although unlikely to be used, having an LPA in place can ensure that not only is the business kept running, those who rely on the business remaining stable, such as employees and suppliers, will have their roles secured.

An LPA does not mean that the attorney will remain permanently; they are required to “so far as reasonably practicable, permit and encourage the person to participate, or to improve their ability to participate, as fully as possible in any act done for them and any decision affecting them.”  This means that a business owner will be involved in decision-making.

DLF addition

The fee for the preparation and registration of a business LPA is low in comparison to the costs and delays that your business will encounter if you lose the capacity to make decisions for yourself.