A Lynn firm of trust and estate planning specialists are aiming to raise awareness of a change in the law which could potentially have a serious impact on businesses.
Inheritance Legal Services, which opened a new branch in London Road in January, said that few businesses were aware of the implications of the legislation which came into effect in 2013.
Under the Equality Act 2010, the government produced legislation to introduce protective characteristics against discrimination for having a mental illness or losing mental capacity.
This means that if a company director or business owner should lose capacity, he or she can no longer be removed as a director by the other directors of the company.
Ryan Taylor, business development manager at the Lynn firm, explained: “If for example someone was in a coma, or suddenly had a car crash, then that person would be unable to sign pay cheques and other directors cannot do so on their behalf.”
A business cannot be sold if a director or owner loses capacity as they cannot sign legal documents. It also means that new contracts cannot be signed,
To comply with legislation, each company director or owner should set up a Business Lasting Power of Attorney, naming the attorneys they trust and would want to act on their behalf.
For more information call Ryan on 01553 860123.