BUSINESS REPORT
THE IMPORTANCE OF PROTECTING YOUR BUSINESS
If you are a shareholder, partner, sole trader or director and become incapacitated through illness or injury, your business is at risk if you don’t have a business lasting power of attorney (LPA), according to Dagmara Kulczykowska (pictured), partner with Geoffrey Leaver Solicitors. The concept of personal LPAs for both property and financial affairs and
health and welfare is well known, but a business owner should have a separate business LPA for their financial affairs to deal specifically with their business. You need to plan, prepare and protect your business by putting in place a business lasting power of attorney to appoint someone to act on your behalf in connection with your business so that fundamental business operations can continue if you become incapacitated.
Why do I need a business lasting power of attorney? If a business owner becomes incapacitated without a business LPA the
implications can have a detrimental impact on the business including: • The running of the business on a day-to-day basis • The management of the business finances • The business decisions • The banks may freeze the business account • Loans can be called in by the bank • The mechanism for decision making can be frozen • Contracts may not be entered into or valid • Business insurance may be affected Your business could be in breach of its regulatory obligations if a key
business owner is incapacitated and measures are not in place. It could bring your business to a grinding halt. A business LPA is the cornerstone of an effective business
continuity plan. Visit:
www.geoffreyleaver.com
APRIL/MAY 2020 inbusiness 17
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