A Business Lasting Power of Attorney, or LPA, lets an owner authorise people to act if they are unavailable or lacking capacity. A company cannot make an LPA. Only individuals such as directors, partners or sole traders can. Planned well, it preserves banking access, payroll and decisions and continuity.
What the Law Allows
Under the Mental Capacity Act 2005, a property and financial affairs LPA can be limited to business matters. The donor appoints attorneys, sets scope and safeguards and registers with the Office of the Public Guardian. Check articles and partnership or shareholder agreements for conflicts.
Structures and Suitability
Sole traders often use a business-restricted LPA. Partners should align the LPA with the partnership deed and cross-authorisations. Company directors must consider board dynamics. Attorneys do not become directors by default, so contingencies may be needed. Many firms reference Power Of Attorney Online when explaining the process internally.
Setting One Up
Decide what to delegate. Choose attorneys with commercial judgement, and name replacements. Be sure to register early, as processing can take weeks.
Boundaries and Good Practice
Keep personal and business LPAs separate. Write clear instructions on reporting, spending limits and conflicts. Maintain a short playbook for payroll, supplier continuity and communications. Review annually. For support, specialists such Power Of Attorney Online can assist with applications.
Getting Help
Templates help, but tailored drafting reduces risk. Ask a solicitor to confirm alignment with governance and banking. A business LPA supports continuity. However, they are not a substitute for good controls and informed directors.
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