How would you Protect Your Business in Bristol, Bath, Cardiff or Swindon?
Most of us have some understanding now of estate planning in relation to our personal affairs. We know that we need to write a Will; we know that it is also advisable to protect our key assets whilst we are still alive so these are left intact to be shared out through the Will after our death. Some of us are shrewd enough to put a Lasting Power of Attorney (LPA) into place to allow loved ones to make decisions on our behalf in the event we are no longer able to do so for ourselves but have you considered how to protect your business?
What happens though if we lose mental capacity and we run a business?
How many of us have considered what would happen to our business interests ? How many have considered what would happen if their fellow business partner or Director were to lose mental capacity?
A traditional Lasting Power of Attorney (LPA) identifies one or more persons you trust to make decisions on your behalf about your personal affairs – either property and finance related or around your health and welfare. Would you want these same individuals running your business affairs ? Would you really want your spouse, son, daughter, niece or nephew making decisions about your company? Who would they hire? Who would they fire? What would they purchase / sell / change? How confident are you that the business would continue to be stable, make a profit and feed your family? What about your business partner or fellow Director(s) – how would they feel about the prospect? And what if something happened to one of them?
Business Lasting Power of Attorney
A Business Lasting Power of Attorney allows you to appoint one or more individuals to run your business in your absence should you be incapacitated in any way. Section 172 of the Companies Act states that all Directors must act at all times in the best interests of the Company. Failure to make provision for a possible state of incapacity could be seen as a breach of your duty under the Act and could potentially leave you liable to being sued for damages.
The Equality Act 2010 and Mental Health Act 2013 means that it is now against the law to remove a Director purely because of mental incapacity. Why leave yourself and your family vulnerable? Why take the risk? Ensure your fellow Director(s) act to protect each other as well – you are in this together.
Here at The Will Associates, we have years of experience in protecting people’s assets and ensuring their loved ones are left in the best possible place when the worst happens. We are specialists in this area and spend all day, every day dealing with nothing else.
We have Consultants across England and Wales who will identify for you the areas of risk pertinent to your particular situation and who can offer guidance on how to protect your business and family. Call us today to speak to one of our Consultants in the Bristol, Bath, Cardiff, Swindon areas on 0800 847 7050.