Husband detained under Mental Health Act - can I run his business?

BillieBoy

Thank you so much for your help in advance. Please be gentle with me as I am going through a very difficult time.

I was recently away looking after my father while he was receiving end of life care when I received the call that everyone dreads - my husband had been in a serious car crash. Whilst critical, his injuries weren’t life threatening so I stayed with my father for another week until he died and then I travelled back home.

whilst my husband’s physical injuries are healing his brain has completely wiped out the accident to help with the trauma and he is currently suffering from amnesia. On a good day he thinks he is at a golf and country club and on a bad day he think he is being held captive and tries to escape. For this reason he has been detained under the mental health ac section 2 (initially).

He is a sole trader with 12 staff, including me, providing care for the elderly but I don’t have access to his bank accounts so I can’t pay anyone. His contracts are for the local authority so I have their details. His team provide meals for people so we can’t just stop.

Can I keep trading even though he doesn’t have capacity? Can I change the company bank details so that the money comes to me so that I can pay the staff and our mortgage, bills etc?

I can see that I can apply to be an attorney but this can take up to 3 months by which time it will be too late.

Could I set up my own company and take over the contracts?

I’m so worried about doing something illegal.

sorry for so many questions

KxMx

Unfortunately as your husband doesn't have capacity at this time in terms of understanding and consent, you cannot apply for a Power of Attorney for him. It's taking around 20/22 weeks anyway.
The court of protection is the only other route that I know of, and that takes an extremely long time so probably isn't a viable option in your predicament.

On-the-coast

So sorry to hear of this double family crisis.
Does your husband have any form of business insurance that could step in and help provide emergency cash/cover/business operations continuity?
I sincerely hope that the recovery is rapid / complete.

Robin9

His accountant should know a fair bit about the business.   Is he the sole signature on cheques ?  Does ne pay the staff via online banking ?

DullGreyGuy

As a sole trader he and the business are one and the same therefore you cannot adjust bank accounts, contracts etc if they were solely in his name. 

You could form your own company or business but that would effectively be a competitor of your husband's and so you'd have to tender to win the contracts away from your husbands business and would obviously only get paid for future work not anything thats already been done.

As he has lost capacity it is too late to apply to be his attorney and instead you would need to apply to be his deputy. Unfortunately the timescales for this is about 6 months and that assumes everything go smoothly. 

BillieBoy

Oh dear, I think I’ve been doing everything wrong. To keep people fed I’ve been sending the carers in and it looks like I’ll have to pay them out of my own pocket. I raise the invoices on behalf of my husbands company so he will get paid but I won’t have access to the money. I work for him and don’t have another job or source of income so I can’t pay any of the bills. Job seekers won’t scratch the surface as we live on a large, drafty money pit of a farm and my husband is the sole earner. He doesn’t have an accountant to advise. He did all of his own accounts but I don’t have access to his laptop and his phone was destroyed in the crash.

It looks as though, as suggested, I will need to set up my own company and see if the local authority will allow me to tender for the business.

MikeJXE

Maybe your first port of call should be the local authority and explain the situation 

Savvy_Sue

I am so sorry to read your posts.

This may be no help to you, I'm afraid, but there is such a thing as  Business Power of Attorney, which would have given you access to the accounts. If he recovers capacity enough to grant this, it might keep you going.

Also note that capacity can vary, and he doesn't have to have it all the time to sign paperwork  the issue is that he must have it at the time of signing. 

Nearlyold

He is a sole trader with 12 staff, including me, providing care for the elderly but I don’t have access to his bank accounts so I can’t pay anyone.

Just wondering how you personally are paid for your work with the business? Are you definitely PAYE or does your husband actually treat you as a partner in the business in respect of self assessment tax returns? 

You also mention your husband's "Company". Is that just a figure of speech as it contradicts your description of him as a "sole trader".

BillieBoy

Just wondering how you personally are paid for your work with the business? Are you definitely PAYE or does your husband actually treat you as a partner in the business in respect of self assessment tax returns?  

You also mention your husband's "Company". Is that just a figure of speech as it contradicts your description of him as a "sole trader".

You’re quite right, “company” is just a figure of speech, he is a sole trader.

I am paid via PAYE

TBagpuss

Have you spoken to him? And have his doctors actually said he lacks capacity to deal with financial issues? 
Being detained (sectioned) doesn't automatically mean that he lacks capacity, although of course it would also depend on whether he is willing to do anything, when he is at his best. 

It's possible that he might have capacity for some things or at some times, so it may be possible for him to add you as a signatory / give you access to the accounts - or to make a one-off bank transfer to allow you to pay wages , if when he is at his best , he is able to understand the need for and effect of doing so. 

It might be worth talking to his doctors to find out whether  there are specific times or situations when he is most able to understand what's happened, and might be able to make some temporary arrangements .