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Powers to Carry on a Business

By | Business | No Comments

Clause 4.8 of the STEP Provisions (second edition) contain limited powers to allow the trustees to carry on the trading of any business interests which the testator may have at death. Where the testator was a sole trader, through these provisions the trustees have an implied power to continue the business in order that it is then sold. This power is only limited to realising the value of the business and through the implied power; this cannot continue indefinitely. Generally, the trustees running the business would be liable for any debts which they may sustain. If the business is only being carried on to realise the value then through the STEP Provisions the trustees have the right to an indemnity from the estate, which gives precedence to the testators creditors and also the beneficiaries. For this reason, it is recommended to include the Powers to Carry on a business clause…

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Commercial LPAs. What they are and what they do!

By | Commercial, Legal, LPA, Uncategorized | No Comments

Commercial LPA Many business owners, partners and directors may not consider what would happen to their business should they be unable to make decisions for their business in the case of their mental incapacity, or if they plan on leaving the country for a long period of time. The answer could be an LPA. For many Partnerships, LLPs and companies, under the Mental Health Discrimination Act 2013, in the case of a Director/Partner losing their mental capacity they cannot be removed as a Director for that company. This will leave the company in a difficult position, where the best way around this, is to apply for a Deputyship, which as we all know is a timely and costly procedure. For a Sole Trader, if they lose their mental capacity, in most cases this would result in losing the business as there is no one able to take it on and…

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