28 April 2025
But what happens if you're running a business, and you suddenly can’t make those key decisions? That’s where a Business Lasting Power of Attorney (BLPA) comes in.
Whether you're a sole trader, company director, or business partner, a BLPA is a smart and proactive way to protect your business from unexpected disruption.
What is a Business Lasting Power of Attorney?
A Business Lasting Power of Attorney is a legal document that lets you appoint someone (an "attorney") to make decisions about your business if you’re ever unable to do so temporarily or permanently. This could include decisions about finances, operations, contracts, or staff management.
Essentially, it ensures your business keeps running, even if you can’t.
Why You Might Need One
Running a business comes with responsibility, not just to your customers and staff, but to the future of the company itself. A BLPA can:
Without a BLPA, your business might be left in limbo, especially if you're the only one legally authorised to act.
Who Should Consider a BLPA?
A BLPA is particularly valuable for:
Even if you work alongside others, a BLPA can act as a safety net where internal documents fall short.
Business vs Personal LPA – What's the Difference?
While a personal LPA deals with personal finances and health matters, a business LPA is focused entirely on your business. That means your attorney can:
You can also tailor the BLPA to reflect the specific needs of your business - whether it's retail, professional services, or a tech start-up.
Real-World Examples
Here’s how a Business LPA can make a real difference:
1. Unexpected Illness or Accident
You’re in an accident and can’t work. Your attorney steps in to authorise salary payments, manage your accounts, and handle contracts, avoiding missed deadlines or financial penalties.
2. Travel or Absence
Frequent business trips or extended time abroad? A BLPA lets your attorney handle urgent business matters while you focus on other priorities.
3. Incapacity Without a Plan
If your company’s governing documents don’t address director or partner incapacity, your BLPA provides a legal route to manage or even replace an incapacitated decision-maker.
4. Partnership Protection
In the absence of a formal clause in your partnership agreement, your attorney can ensure your interests, and the smooth running of the partnership are protected during incapacity.
Don't Forget: Legal Compliance is Key
A Business Lasting Power of Attorney must comply with the Mental Capacity Act 2005, especially sections dealing with capacity, scope, and attorney responsibilities. It’s not just a formality - it’s a legal safeguard.
You should also notify stakeholders, such as your bank, employees, and professional advisers, once the BLPA is in place. Transparency ensures everyone knows who can act and when.
Get the Right Legal Advice
Every business is different and so are its risks. Taking legal advice ensures your BLPA is fully compliant, customised to your needs, and integrated with your existing business documents.
A Business Lasting Power of Attorney isn’t just a smart idea, it could be a business lifesaver.
Thinking about protecting your business with a BLPA? Get in touch with our expert team to start the conversation. Contact 01202 527008 or via online: Contact Us AB Solicitors For Your Legal Needs
