As a business owner, it is important to make a business contingency plan to safeguard your business in the worst case scenario. Have you thought about what would happen if you were no longer able to run your business or make those important decisions? Who would you trust to carry out this role on your behalf? You would want to ensure that the person who is managing your company has the authority to make the best decisions. This could involve vital business tasks such as:
- Signing cheques
- Paying staff wages
- Entering into contracts
- Placing orders
- Managing bank accounts
- Buying or selling property
- Arranging insurance
Unless you have made a Lasting Power of Attorney, there could be a substantial disruption to your business if you are unable to act in any way.
A Lasting Power of Attorney for Property and Finances allows you to appoint someone to deal with both your personal finances and your business affairs. This could be used if you are physically incapable, mentally incapable or if you are just out of the country.
You can even appoint several attorneys to act on your behalf and you can specify that either one of them can act at any time. You can include restrictions or guidance in the Power of Attorney. This provides your business with a greater level of protection. This is a way to protect your family as the Power of Attorney may secure a crucial income for them, at an important time.
Your Lasting Power of Attorney is a document that lasts for the rest of your lifetime. The Power of Attorney also needs to be registered with the Office of the Public Guardian which has the power to monitor the use of the Power of Attorney. You can then relax knowing that you have taken steps to protect your business and your family.
If you did not have a Lasting Power of Attorney and became incapable of dealing with your financial affairs, an application would need to be made to the Court of Protection for them to decide who they appoint as your Deputy. This is a costly and complex procedure which can take many months to resolve. You run the risk of having many problems with your business in the meantime!