Whether you run your own business as a sole trader, as part of a partnership or through a company you will appreciate that a key aspect of any good business plan is continuity. Have you considered the effects of what may happen if you suddenly became unable to manage your business and financial affairs whether through illness, injury or even due to being temporarily stuck abroad? In the short term this could cause delays and initial loss of business but long term the effect could be catastrophic. This presentation highlights the need for a LPA to help keep your business flourishing.

1. Backhouse Solicitors
Friends of City Networking
“Lasting Powers of Attorney for Business”
25 August 2016
Carly Dartnell

2. Objectives
• What are Lasting Powers of Attorney
– Property and Financial Affairs
– Health and Welfare
• Why you should have one
– Individuals
– Businesses
• Who you can appoint
• Any questions

3. What is a Lasting Power of Attorney
• A legal document which allows you to give people
(“Attorneys”) the authority to make decisions for
you.
• There are two types of LPA
1) Health and Welfare
2) Property and Financial Affairs (including
business affairs)

4. Health and Welfare
• Can be used by your Attorneys to make decisions
about your health when you are unable to make
the decision yourself
• Types of decisions include:-
– Giving or refusing consent to life sustaining treatment
– Making decisions about full time residential care and
where you are placed
– Consenting to operations and medication

5. Case Study 1
Mrs W, made a LPA for financial affairs in 2011. She
subsequently developed vascular dementia and as a
result lost her capacity.
In 2015 she required a minor operation on her
hands. As she was unable to consent herself AND
because she had not made a health LPA the doctors
refused to operate.

6. Property and Financial Affairs
• Can be used by your Attorneys to make decisions
about your financial affairs under your instruction
and when you are unable to make the decision
yourself
• Types of decisions include:-
– Buying and selling property
– Organising insurance
– Accessing bank accounts and statements
– Dealing with tax affairs

7. Case Study 2
Mrs D created a LPA for finances in 2012. She
subsequently became physically unwell and unable
to get out of the house to withdraw her pension,
purchase shopping etc.
Her appointed Attorneys were able to register the
LPA with the building society, withdraw her pension
and organise a weekly food shop for her.

8. Business Lasting Powers of Attorney
• Applies whether you are a sole trader, a partner or
a company director
• What would happen if you were suffering from
illness or injury or if you were stranded abroad?
– Who would sign your company cheques and manage
your accounts?
– Who would pay your employees?
– Who would order and maintain your stock levels?

9. Business Lasting Powers of Attorney
A family member or a loved one?
No - in most cases there is no one with legal
authority to make decisions for you.
Short term? delays and maybe disgruntled staff
Long term? Potentially catastrophic!

10. Business Lasting Powers of Attorney
Q: So, how can you avoid this situation?
A: By making a Lasting Power of Attorney for
Property and Financial affairs to deal solely
with your business.

11. Who should be your Attorneys?
• Someone that you trust
• Must be over the age of 18
• Must not be bankrupt
• You can appoint replacements
• Can be a family member, business partner or
professional BUT IT IS imperative that they are
familiar with the business and that they share the
same values and outlook as you

12. Other considerations…
• You will need to check your articles of association
to see whether there are any restrictions – if so
they may need to be amended
• You can provide guidance and advice to your
Attorneys on the types of decisions that they can
make

13. Other considerations cont.
• You can even decide how they should act:
– Jointly
– Jointly and severally
– Jointly for some decisions and severally for others
• You can also have a separate LPA with separate
Attorneys for your personal and for your business
decisions
• You can revoke the business LPA when you retire
or close the firm

14. What if you don’t have a LPA?
• Application to the Court of Protection for
Deputyship
• Court will assess the circumstances and decide
who is best suited for the role
• May not fit your personal or business needs
• Costly and expensive process with no guaranteed
results
• Ongoing yearly supervision costs

15. Procedure & Costs
• Documents prepared
• Signed by all parties (including a certificate
provider)
• Registered with the Office of the Public Guardian
– Statutory period of 4 weeks
– Registered with 8 – 10 weeks
– Court fees £110.00 per document
– Can be used as soon as they have been registered

16. Any questions?

17. Further Help
• For further information or to discuss your
individual needs, please don’t hesitate to contact
myself or the Private Client Team for more details:
• T: 01245 893400
• E: info@backhouse-solicitors.co.uk
• W: www.backhouse-solicitors.co.uk