Deputy Leadership: A Business Lifeline When the Owner Is Suddenly Unavailable

If the owner and managing director suddenly becomes unable to work due to illness or death, a business can come to a standstill almost overnight. Careful contingency planning helps ensure that this does not happen.

Anyone with entrepreneurial responsibility should decide well in advance who can step in legally, operationally, and strategically in the event of an emergency. The goal is to safeguard business continuity and maintain liquidity, even under exceptional circumstances.

Typical Risks

• No legally authorised representative to deal with contracts, banks, or public authorities
• Interrupted payment processes (e.g. salaries or supplier invoices)
• Unclear responsibilities for customer projects and employees
• Risks to business succession and the company's long-term value

Recommended Measures

• Grant a General Power of Attorney: Appoint a trusted person—such as a spouse, business partner, or fiduciary advisor—and provide them with a notarised power of attorney. This enables them to manage banking transactions, sign contracts, and handle administrative matters if an emergency arises.
• Appoint a Deputy: Designate someone to take over day-to-day operational responsibilities. This can be an experienced internal employee or an external professional such as a fiduciary firm or business advisor.
• Keep Essential Documentation Accessible: Ensure that access credentials, customer lists, contracts, and information on ongoing projects are securely documented so that authorised individuals can act without delay. Tip: Store a secure digital emergency file with your fiduciary advisor.
• Secure Your Succession Legally: Use a will or a marital and inheritance agreement to define who is authorised to continue or take over the business.
• Prepare an Emergency Plan: Create a clearly structured emergency contact list that includes your bank, fiduciary advisor, insurance providers, and key customers to enable an immediate response when needed. Tip: Review and update your emergency plan annually.

Source: Treuhand | Suisse