Map who can decide what during a closure

Topic
Advisers and authority to sell
Reading time
2 minutes
Last reviewed
On this page
  1. Use one row for one defined decision
  2. Try the map against a real request

A closure coordinator can organise the work without having power to approve every decision. An accountant can advise without becoming the business's decision-maker. A site manager can supply facts without owning the equipment.

Draw an authority map around decisions, then ask the appropriate legal adviser to check the formal basis. The map is a working explanation of established arrangements, not a document that creates new powers by itself.

Use one row for one defined decision

Start with an action such as instructing marketing for a specified asset group, approving a contractor expense or agreeing a customer response. Broad entries like "all closure matters" are hard to check and easy to misuse.

Field What to establish
Relevant person or entity Whose property, contract or obligation is involved?
Information provider Who can supply the current facts?
Adviser Who is assessing the legal, tax or other question?
Authorised decision route What process and people can approve this action?
Conditions and evidence What must be resolved and where is the supporting record?

For companies, the Insolvency Service points directors to their articles and later resolutions when identifying their powers. The actual documents and circumstances need review; a familiar title is not enough to complete the map. Record shareholding separately from the role of running the company.

Try the map against a real request

Suppose the auctioneer asks whether an additional machine can be included. The map should show who confirms the machine's current business use, who checks any ownership question and how the final instruction is authorised.

If the request reaches someone who only coordinates information, the referral route should be obvious. Recording a director instruction helps preserve the capacity, scope and conditions when the proper decision is made.

Keep shared family or partner involvement distinct from formal powers. Equal involvement and authority explains why listening to someone's concerns and accepting their instruction are separate actions.

Update the map when roles, entities or relevant arrangements change. An authority-change notice should identify the affected decisions rather than merely announce a new contact name.

Provide UK Auction Group with the current instruction route and any unresolved condition before commitments are considered. Supporting documents can be supplied through an appropriate controlled process when needed.

A useful map reduces the number of times people have to guess who can answer. It also leaves a clear blank where authority has not yet been established, giving the adviser a precise question to resolve.

Explore advisers and sale authority.

Sources

This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.

Closing a business with assets to sell?

UK Auction Group values everything on site, runs the sale and hands the premises back clear, with a full statement of proceeds at the end.

Send a list of what you have, where it is and your deadline. Decisions that are still open can be included.

Business closure auctions and site clearance Contact UK Auction Group

Business Closure Guide is part of the UK Auction Group portfolio.

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