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