If you’re a small or medium-sized business owner, you already know how much responsibility...
If you’re a small or medium-sized business owner, you already know how much responsibility rests on your shoulders. From managing finances to ensuring your staff are paid on time, your role is central to the stability of your business. But what happens if you become unable to make decisions due to illness or injury?
Without proper legal safeguards, your business could be left vulnerable, and so could your employees.
Why Business Owners Need a Lasting Power of Attorney (LPA)
A Lasting Power of Attorney (LPA) allows you to appoint someone you trust to make decisions on your behalf if you lose mental capacity. While many people think of LPAs in terms of personal finances or healthcare, they are just as vital for business continuity.
Key reasons to consider an LPA for your business:
● Protect your business operations if you become incapacitated
● Ensure staff salaries and bills are paid without disruption
● Avoid delays or legal complications in accessing business accounts
● Safeguard contracts, payroll, and financial obligations
● Provide peace of mind for you, your team, and your clients
What Happens Without an LPA?
If you lose capacity without an LPA in place, no one, not even your spouse or business partner has automatic authority to manage your business affairs. This could mean:
● Frozen bank accounts
● Unpaid wages
● Missed tax or supplier deadlines
● Risk to your company’s reputation and stability
In such cases, someone would need to apply to the Court of Protection for a Deputyship Order, which is more time-consuming, costly, and restrictive than an LPA.
How an LPA Works for Business Owners
You can tailor your LPA to cover business-specific financial decisions, such as:
● Authorising payments and managing accounts
● Overseeing contracts and supplier relationships
● Handling tax and compliance matters
● Making strategic financial decisions in your absence
Your appointed attorney should be someone with the skills and understanding to act in your best interests, often a trusted colleague, professional advisor, or family member.
Getting Started
At hpjv solicitors, we help business owners create robust, legally sound LPAs that reflect their unique needs. We’ll guide you through:
● Choosing the right attorney
● Defining the scope of authority
● Registering the LPA with the Office of the Public Guardian
● Ensuring your business is protected with clarity and confidence
Don’t Leave Your Business Exposed
An LPA isn’t just a legal formality; it’s a vital part of your business risk management. Whether you run a limited company, partnership, or sole proprietorship, having a financial LPA in place ensures your business can continue smoothly, even if you can’t.
Alexis Thomas; Associate at HPJV and Chartered Legal Executive
For expert advice on setting up a Lasting Power of Attorney for your business, contact Alexis Thomas, a CILEX Lawyer and an Associate within the firm carries a wealth of experience in areas such as Will writing, drafting of Lasting Powers of Attorney, Probate and Estate Administration.
