Why do business owners need a power of attorney?

This article was originally published by The Hamilton Spectator.

Q: Do I need a Power of Attorney as a business owner?

A: As a business owner, you know that decisions must be made on a daily basis to ensure the smooth and successful operation of your business. That’s why you plan for someone to make business decisions in your absence when you go on vacation. However, not all absences are planned.

An accident, disability or illness can occur suddenly and make you incapable of making decisions for significant periods of time. As a result, a Power of Attorney for Property is especially important for business owners and operators.

A Power of Attorney for Property is a document which gives a named representative of your choosing (called an Attorney) the authority to make decisions and take actions regarding your property. This may include managing your business, buying and selling property, day-to-day banking transactions, signing contracts, managing investments, and collecting debts.

If you’re incapable of making decisions and don’t have a Power of Attorney in place, control of your assets would rest with Ontario’s Office of the Public Guardian and Trustee until a guardian is appointed. Most individuals, and certainly business owners, don’t want a government body managing their money or business, and having to get an Attorney appointed can delay time-sensitive business decisions and result in added costs.

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