You may have considered what will happen to your business after your death, but have you considered what would happen if you were unable to make decisions about your business during your lifetime? You may not be in a position to make decisions for a number of reasons, whether that’s because of a medical condition that leaves you incapacitated, or, given recent experiences, because you’re stuck abroad.
If these sound like risks you’d like to mitigate then you may want to look into getting a business Lasting Power of Attorney (LPA). A business LPA is a legal document that authorises trusted individuals, called attorneys, to run your business if you are no longer able to fulfil your responsibilities.
Business LPAs can be broad-ranging but there are also specific business LPAs that allow you to assign certain responsibilities to certain people. In short, if circumstances conspire against you, a business LPA can secure your interests when you’re not able to.
Business LPAs cover different types of enterprise
Whatever shape your affairs take, it’s important to seek legal advice in relation to the preparation of your business LPAs, particularly if they need to work alongside existing arrangements.
- Sole traders often run specialist and technical businesses. In this case it may be unwise to assume that a family member could step in and manage the business on your behalf. A properly prepared business LPA can ensure the continuity of your business especially if the right person has been appointed as your attorney.
- If your business is a partnership then in the absence of a properly drafted Partnership Agreement that covers issues such as incapacity, it may be impossible to make decisions without having a business LPA in place.
- If you own shares in a limited company, you can provide for your loss of capacity in your Articles of Association. You can also appoint other shareholders in your company to act as your attorney and make decisions regarding your shares in the event that you are not available to make the decision yourself.
Steps you can take now to secure your interests
All businesses need clarity and stability to keep working effectively. Equally, every business has its own special circumstances which need to be taken in to account, so appropriate measures are put in place.
If you’d like help with putting an LPA in place, to secure your business and its future, we are happy to explain how you can organise yourself and prepare for the unexpected. We’ll help you create arrangements to ensures the right people are appointed to do the right things.
At Jackson Lees our specialist advisors can provide you with the guidance and advice you will need to protect your business. We can explain what types of business Power of Attorney may be right for you and in what circumstances they can help. Speak to us about putting arrangements in place now to protect your business interests into the future.
Call us for a free today on 0151 282 1700 to find out where you stand.