Business risk management should include making a power of attorney
2 August 2015
You may think that a power of attorney is only necessary for the elderly, but business owners are also vulnerable to health risks that could affect their mental or physical capacity; such as increased levels of stress, travelling abroad and participation in adventure sports.
Stephen Myers advises all business owners and entrepreneurs to create a lasting power of attorney.
“Drawing up a lasting power of attorney should be as much a part of your risk management approach as taking out key-man insurance” advises Stephen.
If your business is run as a partnership or has a board of directors, it is prudent to ensure that all members have a lasting power of attorney to cover what happens to their company voting rights, shares and drawings.
Once you become unable to manage your own decisions even your close family do not have an automatic authority with company employees, your contacts or your company bank or Companies House.
Creating a lasting power of attorney is relatively straightforward and it can cover both your business and personal finances, or you can make two separate ones. For example, you may want to appoint your second-in-command at work to act alongside a trusted family member. Alternatively, you might appoint an independent professional.
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.