Legal Persons And Power Of Attorney

Question 1

Define legal person

Answer 1

1. An entity who has rights, protections, privileges, responsibilities, and liabilities under the law, just as natural persons do.
2. Examples of legal persons include companies, sovereign states and cooperatives

Question 2

Define legal personality

Answer 2

1. Acts as a Single Entity –
   Legal personality allows one or more natural persons to act together as a single legal entity, like a company or organization.
   The law treats the group as one “person” that can enter into contracts, own property, and take legal action.
2. Also Called a “Composite Person” – Since the law views the entity as a single unit, even if multiple people are behind it, it is sometimes called a “composite person” for legal purposes. Acts as a Single Entity – Legal personality allows one or more real people (natural persons) to act together as a single legal entity, like a company or organization. This means the law treats the group as one “person” that can enter into contracts, own property, and take legal action.
3. Also Called a “Composite Person” – Since the law views the entity as a single unit, even if multiple people are behind it, it is sometimes called a “composite person” for legal purposes.

3 Legal Obligations (Like Taxes) – Just like natural people, entities with legal personality must follow certain laws, such as paying taxes, following regulations, and being accountable for their actions.

4. Protects Individuals from Personal Liability –
   Legal personality separates the entity from the individuals behind it. E.g. if a company has debts/ gets sued, its owners (like shareholders) usually aren’t personally responsible for paying those debts. This protection is called “limited liability”

Question 3

Define natural person

Answer 3

A human being who has legal rights and duties from birth (e.g., the right to own property, enter contracts, and sue or be sued).

Question 4

Define power of attorney

Answer 4

1. A legal document that allows a person to give another person/ persons the power to make decisions about their financial affairs and/ or health and personal welfare
2. It comes in two forms:
   A. Enduring power of attorney (EPA)
   B. Lasting power of attorney (LPA)

Question 5

Power of Attorney

The LPA (lasting power of attorney) was created in 2007 under the Mental Capacity Act 2005. Replaces the previous EPA.

What are the two types of LPA’s?

Answer 5

1. Property and affairs LPA -
   Gives a person the ability to make decision decisions about somebody else’s financial affairs
2. Personal welfare LPA -
   Gives a person the ability to make decisions relating to somebody else’s personal healthcare and welfare, including decisions to give or refuse consent to treatment on their behalf

Question 6

Power of attorney

Who should the LPA’s be registered with?

Answer 6

Must be registered with the Office of the Public Guardian (OPG) to be effective.

Question 7

How can we deal with EPA’s registered before the 1st October 2007?

Answer 7

An EPA established before October 1 2007 can still be used AND must be registered with the OPG when the person it applies to (donor) starts to lose mental capacity.