Business risk management should include making a power of attorney

7th May 2015

As a business owner or director, have you ever considered what would happen to your business if you became incapable of making important day to day decisions?

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 your mental or physical capacity – such as increased levels of stress, travelling abroad and participation in adventure sports.

Marie Tisdale, partner and wills and probate solicitor at Ansons Solicitors in Lichfield, 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 Marie.

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.

For advice on appointing a lasting power of attorney or any wills and probate matter, contact Marie Tisdale in the wills and probate team on 01543 267 981 or Ansons Solicitors has offices in Cannock and Lichfield, Staffordshire.