Lasting Power of Attorney - New law for business owners and Directors

 The Mental Health (Discrimination) Act 2013 takes out the option to remove a company Director because of mental health problems. This effect makes mental health problems a protected characteristic under the S4 Equality Act 2004 so that the same rules apply for partnerships or even sole traders.

1 in 6 of us under 65 will take time off for mental health problems during our working lifetime. The term mental health covers a wide range of illnesses from long-term dementia to taking time off for stress-related illness and everything in between. So how would your company function without one of its key decision makers? It could have serious implications for your business.

For example what if the bank finds out? They could call in any loans or overdrafts! If they think their money is jeopardized in any way they can ask for it back. Bear in mind that if your accountant or other professional, knows about a mental health problem, they have a professional duty of care to notify anyone affected which could include the banks.

The solution is a Business Lasting Power of Attorney (LPA). A specific LPA to solely deal with your business affairs. This type of LPA can be used for a number of situations:

  • Mental health problems
  • A prolonged absence from work e.g. holidays
  • Working abroad
  • Other illnesses that might incapacitate you
There are, “Cases where the donor should have made two LPA’s: one for their business affairs and the other for their personal finances.”

DENZIL LUSH, Senior Judge of the Court of Protection Elder Law Journal in July 2013, [2013} Eld JJ 144

In your absence, you nominate someone to make decisions for you. There is a lot of important detail about who you choose e.g. are they qualified, but if for whatever reason you are unable to fulfil your duties at work your Attorney can make them for you. This gives your business robust provisions that will satisfy important institutions like the banks that their money is safe.

It is vital that if you run a business or if you are a Company Director you MUST get a Business LPA in place as a matter of urgency.

If you would like further information or to book a free consultation please contact me

Matthew Wildeman on 07557 682 702 or mpwildeman@yahoo.co.uk

Location: Bristol, UK

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