Important information for Company Directors

Important information for Company Directors

Did you know that as a Company Director you can no longer be removed from that role on the grounds of mental health issues? This change in the law could have a catastrophic effect on many small and medium sized businesses. The rules arguably also extend to Partners in a partnership and potentially to Sole Traders.

The change arises under the Mental Health (Discrimination) Act which took effect from 28th February 2013. The Act applies to MPs, Jurors and Company Directors.

Fortunately there is a relatively simple and effective way of insuring against this eventuality by making a Commercial Lasting Power of Attorney whilst you have the capacity to do so. In the LPA you would appoint others to fulfil your duties as a Director in the event of your loss of mental capacity in the future. The choice of Attorneys for your business activity needs to be made with extreme care. It is unlikely to be the same people as the Attorneys you might have appointed in a personal LPA.

Contact us for guidance, advice and/or to discuss your options.

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