The Benefits of an Enduring Power of Attorney
In the unfortunate event of an accident or the premature onset of dementia or Alzheimer’s disease, business owners may no longer be able to make any reasonable decisions.
On a short term basis, this can lead to the business’ shutdown as the business owner may have no ability to access the entity’s bank accounts, pay staff wages and contract new orders – in effect keep the business going.
Many business owners and company directors do not have in place an effective Enduring Power of Attorney (EPA), whereby another nominated person has the immediate ability to make informed and reasonable decisions and act on their behalf.
Using a legal practitioner to implement an Enduring Power of Attorney is a simple process. It can also eliminate the need for the family of the business owner or company director to make an application to the Victorian Civil and Administrative Tribunal (VCAT) Guardianship List.
Even though the VCAT application and hearing can be held within a short number of weeks, appointing an administrator to manage the financial affairs for the business does mean it will lose valuable time. Losing a few short weeks can be detrimental if access to bank funds and normal weekly commitments cannot be made. In most instances the business has just a short number of weeks before customers and staff find alternate suppliers and employment.
Every business owner and company director is advised to establish an effective Enduring Power of Attorney.
If you would like more information, please contact us.