Business LPA and a Partnership
A Business
Lasting Power of Attorney allows a partner to appoint one or more persons ('attorneys') to manage their business
interests if they lose capacity, injured or are not available for some other reason. This could be very useful if the Partnership agreement is missing or unclear on
incapacity or if partners travel frequently. The BLPA only grants the
attorneys the authority to manage the absent partner's share of the business
affairs.
Having BLPA attorneys in place minimises the risks of business
disruption and of an impact on the relationship with clients.
The chosen attorneys may be permitted to, for example, manage work, pay suppliers and employees and to sign contracts.
The BLPA is drafted so that it aligns with the Partnership
agreement. A traditional Partnership is typically dissolved if one of the Partners becomes incapacitated. To change that, the 'incapacity' clause in the Partnership agreement would be modified.
In the case of an LLP Partner, making a Business LPA has similar benefits.
For information about having a Business LPA prepared, tailored to your particular circumstances, please contact us.