Business LPA - Multi-director company

  A Business Lasting Power of Attorney (BLPA) enables each director in a multi-director limited company to appoint a trusted attorney to manage their business responsibilities if they lose mental capacity or are otherwise unable to act. This allows business operations to continue smoothly without disruption. 

  Company Articles often address director incapacity, with standard Model Articles automatically terminating a directorship upon medical confirmation of incapacity. However, companies can adopt bespoke articles for greater flexibility, such as introducing a tiered system that distinguishes between temporary and permanent incapacity. Amending the articles to explicitly empower attorneys appointed under a BLPA can strengthen business continuity plans.

  The authority of an attorney under a BLPA should be clearly defined and limited by the company's Articles.  The director decides whether to appoint one or more attorneys and whether multiple attorneys should act jointly or independently. The persons chosen to act as attorney will have the necessary skills and understanding of the company's business.

  Having in place a Business Lasting Power of Attorney for each individual director can be a key part of business continuity planning, while helping to safeguard each director's interests. 

   To be effective, the BLPA must align with the company's Articles of Association and any Shareholders' Agreement, which may require amendments to documents so that they are aligned. We carry out the groundwork and then refer to a firm of solicitors the final drafting of the BLPA and updating of the company's Articles and any Shareholders Agreement.