A good first step in succession planning for any size business is evaluating the usefulness of a power of attorney in the operation of your company. Who will sign checks? Who can deal with other banking, regulatory or legal issues? For many small single-owner businesses, the owner’s inability to attend to the day-to-day mechanics of running the company can be satisfied with the execution of a power of attorney naming a trusted employee or family member. In larger companies, where equity ownership includes multiple persons, it isn’t necessarily the day-to-day operations that present problems. However, both the company and other equity owners will need assurance they can deal with a legally appointed personal representative, and the existence of a power of attorney can eliminate the need for a court proceeding.
The time is now to consider these issues – unique to every business – and plan ahead.
Powered by Compendium
Comments for Succession planning