Do you need a Business Lasting Power of Attorney?

What is a BLPA?

A lasting power of attorney (‘LPA’) lets you appoint someone you trust to act on your behalf.

There are two types:

• Property and Financial Affairs LPA (FLPA): empowers your attorney to manage finances and property.
• Health and Welfare LPA: lets your attorney make decisions about healthcare and personal welfare.

A BLPA is a specialised FLPA focused entirely on your business. It ensures your attorney can manage your business exactly as you would, while leaving your personal finances untouched.

“Separate your personal finances from your business and keep control where it matters most.”

What does a BLPA do?

Your BLPA appoints a trusted attorney to step in when you can’t, whether you are travelling, ill, or have lost mental capacity. It’s your plan for continuity: smooth operations, uninterrupted decisions, and business as usual.

Because business decisions can be complex, the authority you grant should be carefully considered. Your attorney can only act on business matters, leaving your personal FLPA to cover private affairs.

Already have a general Power of Attorney or personal FLPA?

A general power of attorney ends if you lose capacity. A BLPA continues. It must be registered with the Office of the Public Guardian, a process that can currently take several months or more.

If you want different people managing business and personal finances, you will need separate FLPAs. Your BLPA can have instructions specific to your business, while your personal FLPA may only be triggered if you lose capacity. For owners of multiple businesses, consider a separate BLPA for each entity.

Legal Considerations

The BLPA must comply with the applicable law relevant to the business type, e.g., Partnership Act 1890, Limited Liability Partnership Act 2000, Companies Act 2006 and should not conflict with the business’ governing documents.  These documents should be reviewed when a BLPA is made.

Choosing the right attorney

It can be tempting to choose a spouse or family member, but the right attorney should have:

• Experience and the ability to act in the business’s best interest
• An understanding of your business operations
• Regulatory compliance if it is required
• Compatibility with other partners, directors, or shareholders
• Good health and longevity

“Choosing the right attorney isn’t about family ties, it’s about business expertise”

What happens without a BLPA?

Without a BLPA, appointing someone requires a deputy application. This can be costly, slow, and unpredictable, and can take six months or more. During that time:

• Bank accounts may be frozen
• Staff and suppliers may go unpaid
• Contracts can be jeopardised or lost
• Loans remain unpaid, insurance may lapse, and reputational damage can follow

Our Private Wealth team, in collaboration with our Corporate & Commercial team, reviews your governing documents, asks the right questions, and ensures the right powers of attorney are in place. We help you plan for the unexpected, so your business and your personal affairs continue smoothly if you lose capacity.