If you own and run a thriving business, then its success may depend on you being there and being capable of running it. Many business owners plan for unexpected death through life insurance policies, shareholder agreements and having a properly drafted will. But is that enough?
If you become incapable of running your business - for example if you have a car or sporting accident, a knock to the head or a debilitating illness - the impact on your business could be tremendous. Having someone appointed in your place could be costly and time-consuming and in the meantime, the business may grind to a halt, order books may dry up and employees may leave, fearing for their livelihoods.
A Lasting Power of Attorney (LPoA) for Property and Financial Affairs should be a key priority in your business back-up plan. You should appoint an attorney(s) to manage your financial affairs in the event you cannot. This could be a spouse, a fellow director, a parent, a son or daughter or a combination of other professionals such as your solicitor or accountant. If you are running a regulated practice, then it may be a requirement of your professional rules to have a LPoA in place, granted to a fellow professional.
Making a LPoA should be seen as a one-off insurance policy. But should it be required, it may just save your business.
If you would like more information on this matter, please call one of our expert solicitors on 0113 201 4900 for a no-obligation initial chat or email us on firstname.lastname@example.org.Back to Blog