business if the An effective way to protect your standstill? business is to set up a business PoA. It’s similar to a ‘personal’ PoA CONTENT SPONSORED Therefore, we in that you authorise a chosen having more c person to make decisions on colleagues an your behalf, but it applies to the business only. The attorney doesn’t business PoAs hugely cheerfu have to be the same person as but important your personal attorney. In fact, in many cases, different people will Want to find be better suited for each task. How you set up a business PoA Don’t just think of Powers of Attorney as part of depends on whether you operate Please give us planning for old age. For business owners and your own part as a of soleAttorney trader or have How y Grant Johnson Don’t just| Partner think of Powers as apart of directors and sole tradersgrantjohnson@lindsays.co.uk of any age, they’re a company or partnership. Existing depen planning for old age. For business owners partnership agreements or and as a s key part of business planning 01382 224 112 company articles of association directors and sole traders of any age, they’re a comp may already have provisions for partn Think of this. You run a small a Worstkey of all,part this would be of business planning Dundee | Edinburgh | Glasgow what happens if a partner or comp business or operate as a sole happening when family and 01382 224112 director becomes incapacitated, may a trader, and you are suddenly friends are of already struggling witha lindsays.co.uk Think this. You run a small Worst of all, this would be so your power of attorney should what incapacitated by serious illness other business practicalor and emotional operate as a sole happening when family and be compatible with these. Advice or injury. If this happened, issuestrader, aroundand your illness or injury. you are suddenly friends are already struggling with direct is therefore important. so you who would pay your suppliers, incapacitated by serious illness other practical and emotional manage the bank account, deal We apologise if we’re painting a or injury. If this happened, issues around your illness or injury. be co We all know that businesses don’t is ther with contracts or insurance, file gloomy picture who wouldhere, pay but yourthese suppliers, want to create more paperwork VAT returns or generally keep thingsmanage happen the to small bankbusinesses account, deal We apologise if we’re painting a but a PoA is a We al customers happy? day after Too many of them file for themselves, with day. contracts or insurance, gloomy picture here, but these simple mechanism for preventing want have VAT no provisions dealingkeep returns orfor generally things happen to small businesses far greater legal complexity and for th If your business bank accounts are with it,customers and therefore don’t survive. happy? day after day. Too many of them cost. In this sense, it is similar to simpl in your name and you have no have no provisions for dealing insurance – something you hope Power of Attorney (PoA) in place, If your business bank accounts are with it, and therefore don’t survive. far gr “Think of a Power of not to use but are relieved to have cost. I no one would be able to take over in your name and you have no if disaster strikes. Attorney as similar insura managing the finances. This could Power of Attorney (PoA) in place, “Think of a Power of not to be catastrophic for your credit to no insurance for your one would be able to take over Spreading the word can if disa Attorney as similar record, business relationships managing the finances. This could
08
‘Guardianship’ – a process which can take six months or more. Few businesses could survive a hiatus this long.
Why anyone who runs a business should Why anyone who runs a busin consider a Power of Attorney consider a Power of Attorney
and reputation, as well as for dependants relying on your income.
Worst-case scenarios Any relative or colleague who wanted to take up the reins would have to apply to the courts for ‘Guardianship’ – a process which can take six months or more. Few businesses could survive a hiatus this long.
Grant Johnson | Partner grantjohnson@lindsays.co.uk 01382 224 112
business – it’s something protect you too be catastrophic for your credit to insurance for your yourecord, hopebusiness not torelationships use but All this matters Spre not–only tosomething families, business it’s prote areand relieved toashave reputation, well asiffor but to other businesses too. Even youapply hope toyou use but All thi if it doesn’t to not you, or dependants on your disaster relying strikes” have a business PoA already, you if income. are relieved to have but to probably have suppliers, clients or if it do disaster strikes”
Worst-case scenarios A simple solution
customers who aren’t protected. What would happen to your own Any relative or colleague who business if they were brought to a An effective to protect wantedway to take up theyour reins would standstill? A simple solution business is to apply set up to a business have the courts for PoA. It’s similar to a ‘personal’ PoA ‘Guardianship’ – a process which An effective way to protect your Therefore, we should all be in thatcan youtake authorise a chosen six months or more. Few business is to set up a business more conversations with person to make decisions on a hiatushaving businesses could survive PoA. It’s similar to a ‘personal’ PoA colleagues and friends about your behalf, but it applies to the this long. in that you authorise a chosen business PoAs and their uses. Not business only. The attorney doesn’t person to make decisions on hugely cheerful chat, to be sure, have to be the same person as your behalf, but it applies to the but important nonetheless. your personal attorney. In fact, in business only. The attorney doesn’t many cases, different people will have to be the same person as Want to find out more? be better suited for each task. your personal attorney. In fact, in Please givecases, us a call to discuss many different people will your own particular be better suitedcircumstances for each task.
DACC • CONNECTED | SUMMER 2019
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Grant Johnson | Partner grantjohnson@lindsays.co.uk 01382 224 112 Dundee | Edinburgh | Glasgow 01382 224112 lindsays.co.uk
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Dundee | Edinburgh | Glasgow 01382 224112 lindsays.co.uk
