Most business owners plan for what happens to the company when they die, but far fewer plan for what happens if they're suddenly unable to run it — a serious illness, an accident, or a medical event that leaves them incapacitated but very much alive. An enduring power of attorney is the document that keeps the business functioning through exactly that gap.
What is an enduring power of attorney?
An enduring power of attorney (EPA) is a legal document under Western Australian law that lets you nominate one or more people to make financial and legal decisions on your behalf. The "enduring" part matters — unlike a general power of attorney, it stays valid even after you lose the mental capacity to make decisions yourself, which is precisely the situation it's designed for. Without one, nobody, not even a spouse, automatically has authority to act on your behalf.
Why does a business owner need a power of attorney?
A business doesn't pause for a health crisis. Payroll still needs to run, suppliers still need to be paid, and the business bank account still needs someone with signing authority. If a sole trader or the sole director of a company is suddenly unable to act, an EPA lets a trusted attorney step in immediately — paying bills, managing accounts, signing documents, and keeping the business operating until the owner recovers or a longer-term plan takes effect.
What happens if a director loses capacity without one?
Nobody has automatic authority to act for them, regardless of how close the relationship. Family members or business partners generally need to apply to the State Administrative Tribunal for an administration order, which appoints someone to manage the person's financial affairs. That process takes time — often weeks — costs money, and hands the final decision on who is appointed to the tribunal rather than the family. Meanwhile, bills go unpaid and decisions that needed to be made yesterday simply don't get made.
Can a power of attorney cover business decisions specifically?
Yes, and it's worth being deliberate about it. An EPA can be drafted broadly to cover all financial and legal matters, or narrowed to specific powers. Many business owners use a general EPA for personal affairs alongside a separate, specific power of attorney covering company or trust dealings — signing on behalf of the business, dealing with the company bank account, or executing documents as a director's delegate. Being explicit avoids any dispute later about whether the attorney's authority actually extends to the business.
Who should be appointed as attorney?
Someone you trust completely, who understands (or is willing to learn) the basics of how the business runs. It doesn't have to be the same person named in your will, and business owners with a co-director or business partner sometimes appoint that person specifically for business-related powers, while a spouse or family member handles personal financial affairs. You can also appoint more than one attorney and decide whether they must act jointly or can act independently.
Where should power of attorney documents be stored?
Somewhere secure and known to the people who'll need it — a solicitor's safe custody, or a digital estate vault that your attorney and family can access on short notice. A signed EPA that nobody can locate when it's actually needed provides no more protection than never having signed one. Services like Custodium Vault exist for exactly this problem, giving your attorney a secure, structured place to find the document and any related instructions without delay.
An enduring power of attorney is a small piece of paperwork that prevents a genuinely serious problem. The Metier Group works alongside our clients' solicitors as part of a complete estate planning strategy for business owners. Contact us to make sure your business is protected if you're ever unable to run it yourself.