Generally if you lose mental capacity and you haven’t made a Lasting Power of Attorney, someone would need to apply to the Court for a Deputyship Order to act on your behalf. This is expensive and the applicant may not be who you would have chosen. The process can also be lengthy – typically taking between 3 and 6 months to complete. In the meantime, nobody can make financial decisions on your behalf.
Business accounts can also be frozen, even where these are held jointly held in the names of business partners or directors. With no funds, businesses in these circumstances can fail.
Having a Business Lasting Power of Attorney in place allows someone that you trust – someone who understands your business – to take over the day-to-day affairs as soon as they are needed. Your attorney might be given the power to pay suppliers and staff, access and manage bank accounts, invest assets, handle tax matters and enter into contracts. Of course, you can limit your attorney’s power, but you need to ensure that the company can continue to operate with any limits in place.
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