Business Partnership and Lasting Power of Attorney: Do You Know Where You Stand?

When people don’t make provision for serious illness or incapacity, it can have an impact beyond just their family.

Jacqueline Almond explains.

Q: My business partner recently suffered a stroke and has been left incapacitated and unable to make any decisions. Alongside my personal worries and concerns for him, I am also concerned about the business. While this hasn’t presented a problem for the business in the short term, I am worried about its long-term future. My business partner owns 60 per cent of the company and I would need his consent to make long-term decisions about the company. How do I resolve this situation?

A: You will need to find out what arrangements are being made for the administration of your business partner’s financial affairs. If he has an enduring power or lasting power of attorney in place, which has been registered with the Office of the Public Guardian, then his attorneys will have authority to sign documents on his behalf and which will include dealing with his business interests provided that he has not restricted their authority to act in relation to the business. If he has not put such a power in place, then a deputy would have to be appointed by the Court of Protection to act on his behalf and to protect his interests. This can take about four months to put in place although if urgent decisions are required there is an expedited process. It is not usual for a deputy to run a business and therefore specific directions are likely to be needed from the court. It may also be appropriate for a professional to be appointed in relation to the business. Once an attorney or deputy is in place, decisions can be made about the business.

For more information and advice on Court of Protection, enduring power and lasting power of attorney, please contact Jacqueline Almond Partner, wills, trusts and probate team at IBB Solicitors, covering Buckinghamshire, West London, Uxbridge, Amersham, Chesham and surrounding counties. Call 01494 790000 or email estatemanagement@ibblaw.co.uk.