I am sure as a business owner you have your Shareholder and Partnership Agreements in place, but have you ever considered a Business Lasting Powers of Attorney (BLPA)?
What is a Business Lasting Powers of Attorney?
Most people are familiar with a Lasting Power of Attorney, being a legal document giving individuals the authority to manage and deal with your personal finances (or health and welfare decisions), on your behalf should you lose mental capacity or are temporarily unavailable to act due to a mental/physical impairment.
But what about your commercial interests?
A BLPA is specifically tailored to protect your commercial interests in your business. You can carefully select individuals who would be able to manage your business should you be unable to do so due.
Surely my existing Property and Financial LPA covers this?
Individuals appointed to manage your personal finances may lack the requisite business competency and it is for this reason that your BLPA should be distinguished from your Property and Financial LPA.
Your business attorneys will have the specialist knowledge to manage your business and the relevant expertise and skills to make effective business decisions.
A BLPA must be seen as part of your business crises management as it reduces business risk by having the right Attorneys managing your commercial interests.
What happens if I don’t have a BPLA?
If you were to lose capacity without a BPLA, an application may have to be made to the Court of Protection (COP) seeking a Court Order allowing the appointment of a deputy to act on your behalf.
This process is excruciatingly long and can take up to a year for the COP to grant an Order. During this time, you may have the wrong individuals trying to run your business or no one at all. The lack of continuity in your business will disrupt the day-to-day management and may even lead to your business closing.
How can I make a BLPA?
Contact our specialist Trust and Estates Team who will be more than happy to guide you through the process and provide you with the peace of mind that you have done everything to protect your business. Call 0800 118 1500 or email: newbusiness@talbotslaw.co.uk