Business Lasting Power of Attorney

 An individual who has a self-employed business or is the sole director of a company can make a Business Lasting Power of Attorney. If they subsequently lose mental capacity or become injured or unavailable, the persons they have nominated will be able to make business decisions on their behalf, allowing the business to continue.

 With the LPA in effect, the attorneys would be able to manage the business and make contracts for the sale and purchase of goods and services, collect monies, pay bills and authorise payment of wages to employees. Having the LPA in effect should remove the risk of the bank freezing the business bank account.

 The attorneys would be in place to see to the business meeting its legal and contractual obligations. They could also take actions to protect the interests of the business. Having the LPA attorneys in place may protect the good standing of the business insofar as customers and suppliers are concerned.

 The attorney or attorneys would probably chosen by the donor after taking into account relevant factors such as their reliability and trustworthiness, their business skills and their experience in managing a business. It is not uncommon for a donor to appoint two attorneys, one of whom is their spouse or partner.

 The LPA would specify that the attorneys must make decisions jointly, or alternatively that they can act jointly and severally, which allows each attorney to act on their own.

 If the donor wants to have a degree of support while they still have capacity, having a business LPA in place would allow the attorneys to make decisions on the donor's behalf. The donor's wishes would have to be respected. This could be part of a phased approach, involving the donor taking time to familiarise the attorneys with the business and the donor's goals for the business.