A Business Lasting Power of Attorney allows you, as the owner of a business, to appoint someone to make decisions concerning your business interests should you be unavailable or lack mental capacity.
If there is no Business Lasting Power of Attorney in place certain risks can arise: for instance, if one of the business bank account signatories lacks capacity the bank can freeze the account… if there is an overdraft the possibility of the bank freezing the account is higher.
If this were to occur an application would have to be made to the Office of the Public Guardian to have a deputy appointed: a process which can be expensive, invasive and take several months.
Many businesses consider crisis management: what happens if there is a fire, flood, theft or computer hacks? Considering what would happen if key business owners or employees lose capacity should form part of a business crisis plan.
It should be remembered that it is not only the elderly or those with a diagnosed medical condition that are at risk – the sad events surrounding Michael Schumacher’s skiing accident remind us that anyone can be affected at any time.
If we can help, please speak to one of our experienced private client lawyers who can advise you further. Our private client team work closely with our commercial / corporate team to provide complete and comprehensive advice to businesses and individuals.
Please call us on 01524 846846 to speak to one of our specialised solicitors today.
By Mark Hutchinson-Lyons