If you are the sole director and shareholder of your company and you lose capacity, even temporarily, your company cannot legally function. Your personal Enduring Power of Attorney does not cover your company. The company is a separate legal entity and needs its own authority document, a company power of attorney, to allow someone to act on its behalf when you cannot.

Most business owners have never thought about this

Most business owners are extraordinarily good at building things. They are planners by nature. They think about risk. They prepare for contingencies every single day.

Then something unexpected happens to them, and the business they spent years building cannot function. Not because it was not profitable. Not because the people around them were not capable. Because nobody had the legal authority to sign anything.

The authority problem

If you are the sole director and shareholder of your company and you lose capacity, nobody can sign contracts, pay wages, make decisions, or keep things moving. Your Enduring Power of Attorney covers you as an individual. The company is a separate legal entity and needs its own document to fill this gap quickly. A company power of attorney appoints a trusted person to act on behalf of your company when you cannot.

The longer term succession question

The question of who controls the company, who the shares pass to, and how that interacts with your overall estate plan requires deliberate, coordinated thinking across your business structure and your personal documents together.

For business owners with testamentary discretionary trusts in their estate plan, there is also the opportunity to think carefully about how business interests, personal assets, and family protection work together as a whole.

✦ Download the Company Power of Attorney Guide

✦ Book a Family Wealth Planning Session

Frequently Asked Questions

What is a company power of attorney?

It is a legal document that gives a nominated person the authority to act on behalf of your company when you cannot. It allows them to sign contracts, make decisions, and keep the business running until a new Director is formally appointed.

Does my personal power of attorney cover my business?

No. Your Enduring Power of Attorney covers you as an individual. Your company is a separate legal entity and requires its own authority document if you want it to be able to continue operating efficiently.

Do I need a company power of attorney if I have a Will?

Yes, for different reasons. A Will deals with your personal estate after death. A company power of attorney deals with authority to act on behalf of the company during your lifetime if you lose capacity.

This content contains general information only. It is not legal advice. Your situation may differ and this is where tailored advice matters.