Does your Business need a Business Lasting Power of Attorney?
Dealing with the day-to-day affairs of a business can be difficult, especially if you were to become incapacitated and were unable to deal with your personal affairs. Your ill health could affect your business. By appointing a trusted Attorney to deal with YOUR business affairs, they would give you and your company the peace of mind you need.
A Senior Judge recently inferred that failure to make provision for the possibility of incapacity, in light of recent legislation, could amount to a breach of the duty owed to investors/ shareholders and directors and leave you open to being sued for damages. Even with the protection of a personal Lasting Power of Attorney, you may not have considered potential conflicts of interest arising and the responsibilities of your personal Attorney to the Company and shareholders. The rules around S172 to S174 of the Companies Act 2006 also would apply to your Attorney should you become incapacitated for any reason. Your Attorney would need to have the appropriate skills and abilities under your personal Lasting Power of Attorney to make appropriate decisions for your business.
When choosing your Attorney(s) some of the factors you need to take into account are:
Directors attitude to risk
Size of the business and number of employees
Someone you trust
There may be other options open to you such as leaving it to the Court of Protection to appoint somebody they choose when the time comes. This is not only time-consuming but very expensive potentially causing costly delays and damaging consequences for your business.
How can we help you and your business?
We can advise you on how to ensure you are up to date with the current legislation in this area, mitigating the risk of exposing your Business and family to claims for damages if sufficient arrangements are not made. Our advisors can provide you with the necessary guidance on how to assess the risk to your business and protect your family and your business by the preparation of a Business Lasting Power of Attorney (BLPA).
For any additional information contact The Will Associates today by calling us on 0800 8477 212 to arrange a free, no-obligation consultation at a time convenient to you and your loved ones, in the comfort of your home.