February 2026 - Legal Update - Corporate Powers of Attorney

A corporate power of attorney is a crucial but often overlooked document for business owners. While many entrepreneurs are familiar with personal wills and powers of attorney, the need for a plan that specifically covers their business if they become incapacitated is often overlooked. A corporate power of attorney allows you to appoint someone you trust to act on your company’s behalf, ensuring contracts don’t stall, and your clients aren’t left in limbo. This person should understand your business and may be a trusted professional or family member, but the authority is limited to business matters only. Many business owners assume a family member can step in during a crisis, but running a business requires specific knowledge and access to information. Without proper planning, your family could face unnecessary stress, and your business could suffer. This is especially true for small businesses and sole directors. Take, for example, the role of professionals like lawyers or real estate brokers who have access to trust funds. If you have not managed your risk through proper estate planning, the consequences of your injury could lead to frustration and delay for those who have chosen to work with your business. For this reason, working with a lawyer for a consultation for your estate plan can help minimize risks and ensure someone is ready to step in if needed. With a corporate power of attorney, a trusted substitute can immediately manage issues, honour contracts, and keep your business on track, protecting your livelihood and legacy when the unexpected happens. If you are looking for an estate planning consultation, do not hesitate to reach out to Liddiard Law Professional Corporation! Michael Craig Liddiard, BA MA JD (905) 932-5437 [email protected] Liddiard Law Professional Corporation