What is a Commercial Lasting Powers of Attorney (LPA) and why would I need one?
A Commercial Lasting Power of Attorney (LPA) is a document which would be recommended for anyone who is involved in running a business to obtain. In the same way as an ordinary LPA, it grants power to an Attorney to deal with your affairs in the event you are incapacitated.
Business owners, Directors and Partners (especially if they have sole responsibility for the business), rarely think about what would happen to their business should they lose the ability to make decisions, even for a short time. Should that Director/ Partner create a Commercial LPA, the person appointed as an Attorney could make decisions involving the business while the Director/ Partner is unable to do so.
The person making a Commercial LPA should consider appointing someone as their Attorney who is knowledgeable about their business. Often the other Directors or Partners within the business would be appropriate. Or in the case of a sole trader, someone else with detailed knowledge of how things are run.
The partnership agreement or articles of association (and possibly even your employment contract) will need to be reviewed. This ensures those documents allow for an Attorney to act in situations where you are unable to and if necessary, make any necessary amendments. A particular recommendation would be where the donor has several businesses. An LPA is prepared concerning each enterprise to ensure they are specifically tailored to the needs of each specific business unit.
For further information about Commercial Lasting Powers of Attorney please contact the Employment team.