Company Powers of Attorney – Do You Need One?

A General Power of Attorney (POA) is a legal document that authorises a person to act on behalf of a company. The attorney can perform actions specified within the POA document including signing documents, handling financial matters, buying and selling assets and making general business decisions.

Why Would a Company Need a POA?

The following situations may warrant the appointment of an attorney under a Power of Attorney:

• A company director is temporarily unavailable (e.g., overseas) and urgent documents require an authorised signature.
• The company has a sole director and wishes to ensure business continuity by having an authorised representative in place in case of the director’s incapacity or unavailability. 

The decision to grant a POA must be made in accordance with the company’s governing documents and applicable corporate law. A properly executed Power of Attorney serves as a crucial risk management tool for business continuity. A POA is not final; a company can cancel it whenever they wish as long as proper notice is provided to the attorney of the revocation.

If you have any questions regarding whether or not your company needs a Power of Attorney, please do not hesitate to contact me. I am here to help.

DISCLAIMER: This article is for informational purposes only and does not constitute legal advice.