What Happens to a Business If an Owner Dies or Loses Capacity?

The answer depends on the entity and governing documents. Company shares may form part of an estate, but directorship does not pass under a will. Trust control follows the trust deed. Partnership consequences depend on the agreement and law. Leases, licences, finance and guarantees may trigger separate events.

Continuity plan

• Identify emergency decision-makers and signing authority.
• Review constitution, shareholders agreement and trust deed.
• Document valuation and buy-sell funding.
• Check key-person insurance.
• Coordinate wills, EPA and superannuation.
• Record leases, licences, banking and digital access.
• Plan communication with staff, customers and suppliers. An EPA may assist with the owner's personal financial affairs but cannot automatically appoint a company director or rewrite trust succession. Entity-specific documents must do their jobs. Book a business-continuity review.

Sources

• ASIC — Companies and officeholders General information only.