Safeguard your business from injury or illness

WITH the New Year upon us, it is usually a time for contemplating and planning for the year ahead. It may be a time for a new venture, a fresh start or for consolidation.

Whichever your proposed direction for 2018 may be, reviewing your existing personal and business provisions on an annual basis is advisable and can ease a burden that you may have been carrying around with you for some time.

If you run a business as a sole trader, in partnership or as a limited company, it is imperative to consider what might happen to the business if you become incapacitated by illness or injury. Have you considered who would take over the running of the business on your behalf? Do you have a crisis management strategy?

Your business partners and family members may already know what you wish to happen should illness or injury hinder your involvement in the business – but in the eyes of the law, this will not be sufficient.

Unless you have an attorney appointed by a power of attorney document (either an enduring or lasting power), the business will not be able to operate effectively. Access to business assets may be restricted or denied, insurance may not be renewed, suppliers may not be paid and existing contracts could be compromised.

Safeguarding the future of your business, whatever its nature, with a power of attorney is crucial.

Below are examples of difficulties an agricultural business could face if trading as a sole trader or if business partners have no clear authority by way of a written business agreement:

Your SAF and any RPW or RPA appeals cannot be submitted;

No new contracts, including new stewardship schemes, can be entered;

Your business has no legal representation and if you are a sole trader, your business will cease;

No financial security or access to business funds for your family, who may depend on your income;

Payments from your business account to settle debts, pay suppliers, utility bills, salaries, veterinary bills etc may be stopped;

Your bank cannot act on instructions from unauthorised persons;

Your accountant may not be able to submit your tax return, which may lead to penalties.

On death, the power of attorney comes to an end and, therefore, the preparation of a power of attorney has no interference with the administration of your will. However, investing in the preparation of this simple power of attorney document could be your business’ lifeline one day.