What is a Business Lasting Power of Attorney and Why Does My Company Need One

What is a Business LPA?

A Business Lasting Power of Attorney (LPA) is a legal document appointing one or more trusted individuals (the attorneys) to manage your business affairs on your behalf, if you become permanently or temporarily unable to do so. This could be through illness (short or longer term) which leaves you without capacity to run the business, for example.

How a Business LPA works

As a business owner, ensuring the continuity of your business and protecting your personal and financial interests are top priorities to maintain it as a viable asset. One critical step in this process is creating a Business Lasting Power of Attorney (LPA), which plays a crucial role in securing your business operations in case of incapacity.

It’s similar to a personal LPA, which can be set up by anyone, so that decisions can be made by others if you become incapacitated – care or financial decisions on your behalf.
Except a Business LPA applies to the business decisions should you become unable to make them; someone else is appointed prior, to step in should the need arise. It’s a ‘just in case’ measure, but an important one to take.

At Bridger’s Law, our friendly and experienced solicitors specialise in helping business owners establish LPAs that protect their business interests and ensure that their company can continue running smoothly, even if they become unable to manage it themselves.
Yet so few businesses know about it or have it in place.

An LPA ensures business continuity planning

Running a business requires quick decision making, effective management, and the ability to oversee day-to-day operations. If these are your responsibilities and you become unable to handle them due to illness or injury, having a business LPA ensures that your business will continue without disruption. Your chosen attorney can step in and make financial and business decisions to keep things running smoothly, maintaining your reputation, finances and longevity of the business.

An LPA provides business protection

Without an LPA, your business can be left unprotected, creating uncertainty for employees, clients and suppliers. This could mean facing long delays and financial loss whilst waiting for someone to be appointed by the court. Some businesses may not survive this time. By putting a business LPA in place, your business is safeguarded and there will be clarity on who will make decisions in your absence.

An LPA can help to avoid business disruption

Choosing the right people to act on your behalf is one of the most important aspects of an LPA. For a business owner, this means selecting someone who understands your business, your values, and your long-term goals. We can guide you through this process, ensuring that you appoint someone who is capable of managing both your personal and business affairs effectively. This will provide a seamless transition of authority, so business-critical decisions can be made without delay.

Get expert help with setting up a Business LPA

At Bridger’s Law, we understand the complexities that business owners face when creating a Lasting Power of Attorney. Our team of experienced solicitors is here to provide you with the expert advice and guidance you need to ensure that your business and personal affairs are protected.

We take a personalised approach with each business or owner, taking the time to understand their business operations and goals, and helping them to select the right person or people to manage affairs in case of incapacity.
Whether you’re a sole trader, a partner, or a shareholder in a limited company, we can tailor your LPA to suit the specific needs of your business.

Find out more about our Corporate & Commercial team
Read our blog that outlines LPA outside of a business – it’s best to have both covered