Business Lasting Powers of Attorney
Running a business often means planning for growth, risk and the unexpected, but many business owners overlook what would happen if they were suddenly unable to manage things themselves.
A Business Lasting Power of Attorney (Business LPA) is a simple but powerful way to protect your business, your income, and the people who rely on it.
What is a Business Lasting Power of Attorney?
A Lasting Power of Attorney allows you (the Donor) to appoint one or more trusted people (Attorneys) to act on your behalf.
A Business LPA is a type of Property and Financial Affairs LPA that focuses specifically on your business interests. It allows your Attorneys to step in and manage business matters if you are unable to do so - whether temporarily or permanently.
Importantly, a Property and Financial Affairs LPA can be used while you still have capacity, if you choose, or only if you lose capacity - the choice is yours.
Why might you need one?
It’s worth asking yourself a few practical questions:
- What would happen to your business if you were suddenly unable to run it?
- Could your family cope without the income it provides?
- Would your employees know who has authority to make decisions?
- Is there anyone who could step in immediately if you were ill or injured?
Without a Business LPA in place, even close family members may have no legal authority to deal with bank accounts, contracts, payroll or day-to-day decisions. This can cause delays, uncertainty and financial risk at exactly the wrong time.
A Business LPA gives you peace of mind that your business can continue smoothly, even if the unexpected happens.
How does a Business LPA work?
You remain in control throughout the process.
- You choose the Attorneys you trust to run your business in your absence.
- You can include clear instructions and guidance within the LPA about how you want the business to be managed.
- You can also prepare more detailed supporting instructions to sit alongside the LPA, covering technical or day-to-day matters.
- You can plan for both short-term absence and longer-term scenarios, including what should happen if you are unable to return to the business.
When your Attorneys need to act, they simply provide a copy of the registered Business LPA to banks, clients or other organisations to confirm their authority.
Important things to consider
Before setting up a Business LPA, it’s important to review:
- Any Partnership Agreement or Shareholders’ Agreement, to ensure Attorneys can be given the necessary authority.
- Whether your bank or financial institutions will recognise the appointment of an Attorney.
Taking advice at this stage helps avoid problems later.
How do I set one up?
Putting a Business LPA in place doesn’t have to be complicated, but it does need to be done properly.
If you’d like clear, practical advice tailored to your business, Cath Collins can guide you through the process, answer your questions, and ensure your Business LPA reflects how you want your business to be run.
You can call us on 01945 898090 or email us at hello@vinelaw.co.uk*
Planning ahead now can make all the difference later — for you, your business, and the people who depend on it.
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