A Lasting Power of Attorney (LPA) removes the strain of dealing with finances should you lose physical or mental capacity, by giving someone you trust the authority to manage your financial affairs and make decisions on your behalf.
While it is hoped that an LPA never needs to be actioned, many people put in place an LPA to ease the burden of personal finances, but a worrying number of people fail to consider a separate LPA in respect of their business interests.
If there is no LPA in place, the day to day management of your business could be seriously affected. It may not be possible to access bank accounts, meaning supplier invoices and employee salaries could go unpaid, creating tension in relationships and risking the future survival of the firm.
With a business LPA, it is vital that the person you appoint is someone who you not only know and trust, but someone who is also familiar with the running of the business. Once in place, the attorney will be able to make financial decisions such as negotiating contracts and operating the company bank accounts, as well as dealing with any sales and purchases of business assets.
Before proceeding with a business LPA, it’s important that documents such as articles of association, shareholder agreements or partnership agreements are examined to check whether they allow the creation of an LPA, as they may need to be amended to allow this.
Making a Lasting Power of Attorney is one of the biggest financial plans you can put in place commercially, so for peace of mind, do not hesitate to get in touch to arrange an appointment.
For more information on how to make a Lasting Power of Attorney in respect of your business please contact Holly Gethin on 0161 761 4611 or email her at Holly.Gethin@whnsolicitors.co.uk