Businesses urged to safeguard future with commercial LPA’s

The tragic demise of local business figures may often make headlines but what often follows in the void of their commercial world may be equally harrowing for colleagues and employees unless simple precautionary measures are taken, claims the Newcastle-based Commercial Law specialists, Barristers and Co.

Amanda de Winter, who heads up Barristers & Co, explained, “Whilst business owners will often have in place ‘Key Man Insurance’, the impact of incapacity is rarely fully considered until it is too late and the harsh reality is that failure to do so could jeopardise the entire organisation. If the owner, a partner or one of the Directors were to temporarily or permanently lose the capacity to make business decisions, they also lose the right to decide what person does have authority in their absence as any LPA must be registered before incapacity strikes.”

“In this event, funds are frozen whilst the courts decide who would be given authority to sign important documents and keep the company running. The legal process of finding a ‘deputy’ would be led by the court system and the longer the process takes the more catastrophic to the business and the more expensive the bill for legal fees becomes.”

“Yet, there is a very simple and highly cost-effective alternative in a Commercial Lasting Power of Attorney (LPA). Working like the more common private LPA’s which safeguard personal funds, a Commercial LPA only becomes operable when needed should the worst happen and incapacity strikes.

Restrictions on dealings can be applied along with exactly how much authority one or more deputies have within the business.  A Commercial LPA can also can make the transition into retirement easier by authorising a trusted family member or employee to have the power to sign contracts, invoices and account matters.”

“This is an absolutely vital business decision to be made and yet there are companies where the future of employees, suppliers and customers are entirely dependent on the health of a very limited number of individuals. A Commercial LPA takes all this risk away and Barristers & Co are currently offering single Commercial LPA’s at a fixed fee of £500.00 plus VAT.”

Based in Alderman Fenwick’s House on Pilgrim Street in the centre of Newcastle, Barristers & Co, led by Amanda de Winter, offers the Direct Access model of legal services which has worked so well in other parts of the North East for her. In essence, it offers clients the expert advice and services of barristers without additionally having to instruct a solicitor.