21/07/2026
What a Business Lasting Power of Attorney (LPA) is, Why it Matters, and How It Protects Your Business.
A Business LPA safeguards your company if a director or shareholder loses mental capacity due to a health event like a stroke, dementia, or an accident.
Many small businesses are run by one to three directors or shareholders, so if one becomes incapacitated, who has the authority to run the business?
Without a Business LPA, the bank could freeze accounts, loans might be called in, and overdrafts withdrawn…. putting the business at risk of not being able to pay wages or collect invoices.
A Business LPA is similar to a personal LPA but focused solely on business matters. While a personal LPA might appoint family members to manage personal finances, a Business LPA designates someone with specific business experience, ensuring decisions are made by someone competent and dedicated solely to the company’s interests.
Why do many clients want both a personal and a business LPA? Often, the attorneys chosen for a personal LPA.. frequently family, don’t have the experience necessary to manage the business.
For businesses, it’s crucial that the designated attorney has the right expertise, potentially governed by a relevant professional body, and can make decisions in the best interest of the business without conflict with personal interests.
For most businesses, a Business LPA is as essential as having public liability insurance or professional indemnity insurance.
Many companies also take out key person insurance to pay out on the death of a main shareholder or director. But unlike other insurances, a Business LPA is a one time cost. Once completed, it remains in effect until circumstances change, like a shift in shareholdings or business structure, making it a lifetime document that provides lasting protection.
Finally, what's more, Business LPA’s are classed as a business expense 😀.
Get them done today; tomorrow might be too late.
Get in touch to book an appointment with myself - details below :
Tel : 07970 776935
WWW : garyowenwillsandestates.co.uk
E-mail : [email protected]