What is Power of Attorney?
A power of attorney is a legal instrument that is used to delegate legal authority to another. A written document is signed by a person giving another person the power to act in conducting the signer’s business, including signing papers and making financial, property, and legal decisions in the name of the person granting the power. The person who signs (executes) a power of attorney is called the Principal. The person receiving the power of attorney is called an Agent or Attorney-in-Fact. A power of attorney may expire on a date stated in the document or upon written cancellation. A power of attorney for health care appoints an Agent to direct health care decisions should the Principal be unable to do so. There are two types of power of attorney. A Non-Durable power of attorney grants powers limited to specific matters, such as handling specific financial matters or health care decisions. A power of attorney may expire on a date stated in the document or upon written cancellation.
A Power of Attorney is a legal document where a person can appoint another (the attorney) to manage their affairs. An Enduring Power of Attorney remains valid even if the person giving it loses mental capacity. It can be used for a spouse, family member or trusted friend to help a person who has lost the ability to look after their own financial affairs. It must be signed before the person loses capacity.
Power of attorney or POA is given to an agent (which can be a family member, a trusted person or a nominated professional.) The POA has the’ power’ to act on certain undertakings as outlined in a legal document produced by the shareholder/s. These undertakings can range from incorporating the company and signing on behalf of the true shareholder or simply opening the bank account on behalf of the shareholder/s. Care must be taken to have a carefully written POA so that the true owner retains all rights and powers of the company and the POA acts only as a signatory.
