What is a Business Lasting Power of Attorney? And why are Business Lasting Powers of Attorney helpful?

A Business Lasting Power of Attorney (BPLA) needs to be considered by business owners, who need to be clear about what would happen to their business and its running if they were unable or unavailable to make decisions. Without a BLPA in place, who may (temporarily or permanently) assume control and have the authority to do so less clear and may leave a business exposed to risk.

A BPLA is useful if a business owner:

  • Is abroad on business or holiday
  • Has an accident meaning they’re no longer capable of acting
  • Has a medical condition that means they are no longer capable of acting 

What happens without a Business Lasting Power of Attorney?

If the above situations arise and a business owner does not have a BPLA in place, an application to the Court of Protection to appoint a deputy to act on their behalf may be required. There is no guarantee at this stage that the Court will appoint an individual who the business owner would have chosen. This process can also prove costly and take time, exposing the business to greater risk.

Who should use a Business Lasting Power of Attorney?

  • Sole Traders – they are not a separate legal entity to their business
  • Self Employed – they are not a separate legal entity to their business.
  • A director of a company – if a director’s incapacitation is not protected by Articles of Association or Memorandum of Association


XYZ Law can advise on whether a company’s Articles of Association or Partnership Agreement cover incapacity.

What are the types of Lasting Powers of Attorney?

The Lasting Power of Attorney (LPA) must register to be registered by the office of the Public Guardian whilst the Donor still has the mental capacity to take effect.

A business owner may wish to consider a:

  • Personal Lasting Power of Attorney (PLPA) – For Property, Financial Affairs, Health and Welfare
  • Business Lasting Power of Attorney


The same document and process are followed by both a PLPA and a BPLA. Each LPA  can be changed to meet an individual’s specific needs and requirements.

A person can have both a PLPA and a BLPA but should appoint suitable attorneys for each one separately.

A business attorney must be able to carry out the role of the Donor in a BPLA, and the Donor should consider giving specific and detailed instructions on what powers a business attorney would hold.

Contact XYZ Law to help with any of your Business Lasting Power of Attorney needs.