Do I Need a Company Power of Attorney?

As an individual, you may well be familiar with the role of a power of attorney in granting authority to someone to look after your affairs if you are unable to do so. However, if you are a company director, this does not extend to acting on your behalf as a company director. Here, we look at a company power of attorney and how it works.

What is a company power of attorney?

A company power of attorney is a legal document in which a company grants a person authority to carry out the necessary tasks to keep it operating in specific circumstances. This is particularly important if you are the sole shareholder and director of a company and cannot carry out your duties. For example, this might be in the case of an extended absence, a serious accident, the loss of mental capacity or death. In this latter case, there would likely be a period of time before probate is granted, with company ownership passing to the beneficiaries and allowing them to appoint a new director.

A company power of attorney can therefore play an important part in allowing the continuing operation of the company should these circumstances come about.

Appointing an attorney to carry out this important governance role for your company is a serious matter, and you should consider carefully who is to be appointed and ensure the appointment is properly documented.

Contact our Power of Attorney Lawyers in Sydney, NSW

If you have any questions about a company power of attorney, please contact the specialists at Szabo & Associates Solicitors on 02 9281 5088 or fill in the online contact form.