A business LPA differs from personal LPA’s because it will be tailored according to the business and considers your articles of association along with any shareholder agreements or partnerships agreements you have in place. 

 

You can put a Business LPA in place should you become unable to make decisions for example you are on holiday abroad, due to illness, an accident or simply due to a loss of capacity. Your chosen attorney(s) would then be allowed to continue running the business, paying salaries to staff, settling bills etc. 

 

How an LPA for your Business would be drafted depends on how your business is run, i.e. in the capacity as a sole trader, partnership or even a limited company. 

If you own a business, lose capacity and there is no LPA in place, it is likely the bank would freeze the business accounts. This also means potentailly the only option then would be for someone on your behalf to make an application to the Court of Protection and apply for a Deputyship Order. This can take up to 6 months and can be very expensive and the impact of this could be very negative on the business even being able to continue trading as there is no-one being able to make crucial business decisions during this time – how would the staff get paid, stock be purchased to continue trading and invoices settled? 

 

Capacity can be lost at any time and could be due to either an accident, a stroke or a deteriorating condition so please don’t wait until it’s too late.