What is a Business LPA?
Business Lasting Power of Attorney is becoming more popular these days. They are similar to the Property and Finance LPA and operate in much the same way.
This donor in this case would be the business owner, and he or she would be able to appoint an attorney to make decisions about the business at a time when the owner no longer has the capacity to do so.
Business Lasting Power of Attorney
This may be the case when the business owner is temporarily unavailable or once there is a lack of mental capacity.
Unless there is a restriction in place, the Business LPA works in the same way as an ordinary power of attorney until the person has lost capacity so it be used on a temporary basis.)
What can business Attorneys do?
The power created would give business attorneys the authority to act in the business. Here are a few examples of the sort of decisions that a business attorney may have to make:
- Day to day management decisions, sales, production, admin etc.
- Dealing with business property buying, selling, renting.
- Managing business assets generally.
- Dissolving or winding up the company.
- Dealing with partnership agreement or Articles of Association.
- Appointing or removal of partners and directors.
- Tax issues and wages.
- Recruitment, redundancies of staff.
- If the business is regulated then complying with all the formalities of the regulators.
The attorney should be making decisions in the donor’s best interests and make decisions based on how the donor would have acted. The donor may wish to discuss their preferences to the attorney for example:
- Succession planning for the business
- Business development and growth of the company.
- Sale of the business.
- Who to use for litigation matters.
Contact us on 0203 004 8269 or info@sclwillsandprobate.co.uk to find out more about Business LPAs.
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