When the person expected to approve closure decisions is unavailable

Topic
Advisers and authority to sell
Reading time
2 minutes
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  1. Identify the blocked decisions precisely
  2. Locate the relevant documents
  3. Confirm the route and communicate its limits

When the person expected to approve decisions becomes unavailable, the business needs to establish the proper route before someone else begins signing or giving instructions. Practical familiarity with their work is not enough to settle authority.

Prepare a continuity brief for the relevant solicitor or professional adviser. State the actual business structure, the person's role and which decisions now need an answer. Avoid circulating unnecessary personal information about the reason for their absence.

Identify the blocked decisions precisely

List the proposed actions, their timing and the consequences of waiting. A customer response, an expense approval and an asset-sale instruction may require different authority routes.

Show what information gathering can be done by people already authorised to do it. Keep that activity distinct from making commitments. The closure authority map can display confirmed routes and the questions left open.

A fictional business can locate machine invoices and arrange an adviser call while a director is unavailable, but does not yet know who can approve marketing. The brief should state both facts. It need not describe the whole closure as impossible, and it must not treat preparation as permission to proceed.

Locate the relevant documents

Ask the adviser which company, partnership, delegation or other documents they need. Supply the current version and explain any known change in roles. For companies, GOV.UK outlines directors' responsibilities; the actual authority question needs assessment against the particular documents and circumstances.

If someone suggests relying on a power of attorney, take the document for specific review. The business power-of-attorney questions distinguish the scope of a personal document from assumptions about a company role.

Record urgent external dates with their source. Do not describe the owner's preferred timetable as an unavoidable deadline to pressure an adviser into an unsupported answer.

Confirm the route and communicate its limits

Once advice establishes what can happen, record the authorised person, defined scope and any conditions through the appropriate process. Give operational contacts a usable explanation without distributing confidential documents unnecessarily.

An authority-change notice can update service providers and prevent old instructions being followed after the basis has changed. Ask the adviser how existing commitments should be handled; do not assume they disappear automatically.

Tell UK Auction Group that the instruction route is being checked and identify the person coordinating the enquiry. Avoid presenting that coordinator as an authorised seller until the position is established. Clear limits allow useful factual work to continue while the decisions needing professional attention remain visible.

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?

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

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