For many business owners, the day-to-day running of a company’s operations depends heavily on their personal involvement.
However, everyone who plays a significant role in a business, whether as a sole trader, partner, or director, should have provision in place for what happens if they are unable to fulfil their responsibilities, either temporarily or permanently, because of illness, injury or incapacity.
A Business Lasting Power of Attorney (BLPA) can provide a valuable safeguard, by ensuring a company can continue to run smoothly if for any reason a key player is unable to perform their duties.
In this blog, our Business Law solicitors consider the value of BLPAs in protecting commercial interests and reveal why every business owner should have one.
What is a Business Lasting Power of Attorney (BLPA)?
A BLPA works in much the same way as a personal LPA in that it gives a trusted attorney the power to make decisions on your behalf should you lose the capacity to do so.
Family and friends are usually appointed as attorneys for personal matters, but for Business LPAs, the choice is more likely to be a work colleague or peer.
Who needs a BLPA?
If you are involved in running a business, particularly in a decision-making role, we would recommend that you have a Business Lasting Power of Attorney.
Putting in place a BLPA is particularly important for sole traders and entrepreneurs who may lack the protections of partnership and shareholder agreements that govern larger organisations.
However, even for partners and directors of companies, what happens if one of the partners becomes incapacitated can often be an area that is overlooked, and it is vital to check the articles of association to see whether it contains any provision for such an eventuality.
This can be a complicated area of law, and specialist legal advice is vital.
If you are a business owner and are unsure whether adequate provision is made in the partnership agreement, or you believe that a BLPA may be required to protect your commercial interests, please contact Bowsers Solicitors.
Our experienced Business Lasting Power of Attorney solicitors advise business owners and directors of companies of all sizes and operating in various industries on their risk management practices and will be able to ensure you have sufficient protection in place.
Speak to one of our experienced Business Law solicitors and chartered legal executives today by calling 01945 583194 (Wisbech) or 01354 652606 (March), or email reception@bowsers.co.uk.
What can a BLPA include?
A BLPA is tailored specifically to your company and its needs. BLPAs can typically give your attorney the authority to:
- Make a company’s financial decisions.
- Manage payroll.
- Oversee staffing.
- Access business accounts.
- Deal with suppliers.
- Sign contracts.
What are the advantages of a BLPA?
Making a BLPA ensures that someone you trust and who understands the business will be able to continue the day-to-day operations of the company.
BLPAs can provide continuity and mean the future of the business is protected.
It is very risky for business owners not to have a BLPA or other appropriate and adequate provision that covers the chances of a key decision-maker being unable or unavailable to oversee the company’s operations.
If you have not made a Business LPA, then it may be necessary to apply to the Court of Protection for a deputy to act on your behalf. There is no guarantee that the Court will choose someone you want to run the business, and the process can be long and expensive.
In the meantime, contracts may become invalid, bank accounts may be inaccessible, salaries go unpaid, and ultimately, the company’s value may be affected.
A Business Lasting Power of Attorney is a necessity and should be a key part of any company’s crisis management plan.
Can I make more than one BLPA?
Yes, you can make more than one BLPA. However, if you are making multiple BLPAs, each should contain specific instructions defining the scope of the respective attorney’s powers.
Owners of several businesses can set up a BLPA for each of their enterprises with specific instructions relating to a particular company.
Business LPAs can also be set up to cover temporary periods of absence, for example if you are overseas and unable to sign documents, pay salaries, service a business loan or take other commercial decisions.
Business Lasting Power of Attorney Solicitors
A BLPA is a powerful legal document that can offer valuable protection. However, it is a complex area of law, and specialist legal advice from an experienced solicitor is vital.
Without seeking appropriate legal advice, there is a danger that important details will be missed, or errors made when drafting the forms, which can make life unintentionally difficult for your attorneys or even cause your LPA to be rejected by the OPG.
At Bowsers Solicitors, we help create LPAs for individuals and businesses. Our experienced power of attorney solicitors work with individuals, entrepreneurs and business owners to ensure that LPAs and other legal documents are robust, and your interests are protected.
To find out more about making a power or attorney, speak to our experienced LPA solicitors, who will be happy to discuss the most appropriate solution for you and your circumstances.
For more information, call us today on 01945 583194 (Wisbech) or 01354 652606 (March), or email reception@bowsers.co.uk.
Alternatively, you can fill in our contact form.
