Lasting Powers of Attorney for Business People

This is a special Lasting Power of Attorney (LPA) needed for a businessman or woman in relation to his/her property and affairs as opposed to private property and affairs.

The answer depends on the business. A sole trader, for example, may not need anything but a general authority to his Attorneys under an LPA.

However, the position is not the same in relation to partners in a business nor in relation to a shareholder and director in a company such as a family company.

In a partnership, the partnership agreement should be considered and may need amendment or indeed the creation of one if there is not one in existence. If not, it is possible that under the Partnership Act 1890 the partnership could be deemed dissolved where one partner is incapable of performing his part of the partnership contract.

In relation to a family company where the donor is the effective owner and director, the position is that the director’s duties cannot be delegated under an LPA unless the Articles of Association of that company makes special provision for this. It is most likely that the Articles of Association of a company will not allow such delegation and the position should be checked and the Articles of Association amended if necessary.

It is advisable for all persons with business interests to have an LPA covering their property and financial affairs, but it should not be assumed that a general authority LPA will satisfy particular circumstances of the donor.