COLCHESTER, England, January 7, 2015 /PRNewswire/ --
All business owners, whether sole traders, partners or the directors of private companies should consider the simple step of drawing up a commercial lasting power of attorney (LPA)
LPA's are used to empower a trusted relative or other person to step in should the worst happen.
Planning a succession is a difficult but vital part of any business if it is to outlive the working life of the founder. Even when a transition is planned, such as at the retirement of a principal or managing director, the upheaval can bring many problems. These potential problems pale beside the disruption that can be caused by the unexpected loss of a business owner through illness or serious injury, even if the loss is only temporary.
It might mean that no one is authorized to sign on the business bank account so that suppliers cannot be paid or cash cannot be withdrawn. Businesses could also be prevented from entering contracts, paying invoices, authorising sales or buying stock. Or perhaps worst of all it could mean wages going unpaid with added knock-on difficulties that could cause for staff and their families.
LPA's are easy to put in place and they normally authorise at least one person to sign on the business bank account should the need arise. An LPA only comes into force when it is needed. That might be in the event of a serious accident or something like a stroke causing the loss of mental capacity or even if a lesser injury incurred, such as a broken leg, that temporarily prevents someone from taking care of their own affairs.
More Than Wills have known viable businesses go under simply because no-one was authorised to sign on the business bank account after the owner became incapacitated. Don't let that be your business or organisation!
More Than Wills Ltd registered in England & Wales. Company No: 9031470. Society of Trusts and Estate Practitioners.
SOURCE More Than Wills Ltd