A Lasting Power of Attorney can also be drafted in order to provide cover for your business needs and enables you to create a Business Power of Attorney.
From a practical point of view it may be very useful to have a business LPA in place in order to ensure that if you are ill, injured or even just out of the Country and unable to deal with the day to day management of your business then someone else can stand in for you.
However, on a more serious note, there are huge impacts on your business if you were to lose mental capacity. In 2014 the law changed. Previously, if a Director of a company lost mental capacity the remaining Directors could remove him from the role, to try and protect the business and the assets. This is no longer possible as it amounts to disability discrimination. The biggest problem with this is that if the business's bank discovers that a Director of a Company has lost mental incapacity then after only 28 days the bank can call the business's loans/overdrafts in. The bank is entitled to do this in order to protect their interests in the business. This could have a huge impact on your business and may even result in its closure.
Having a Business LPA in place means that you can ensure that in the event of your mental incapacity someone can deal with managing your business to either ensure it continues in your absence or deals with closing the business on your behalf
For more information, why not download one of our helpful guides or call our team to discuss your problems in person on 0114 272 1884 or 01302 341414
We can help you with any of the following: