What is a Commercial LPA and why would I need one?
A Commercial Lasting Power of Attorney is a document which we would recommend for anyone who is involved in running a business obtains. 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. If that Director/ Partner has created a Commercial LPA the person appointed as an Attorney could make decisions involving the business while the Director/ Partner is unable to.
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 if 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 to ensure that those documents allow an Attorney to act in situations where you are unable to and, if necessary, these documents will need to be amended. If the donor has several businesses we would recommend that an LPA is prepared in relation to each of them to ensure that they are specifically tailored to the needs of that specific business.
For further information about Commercial LPA’s please contact our Employment team.