Company Power Of Attorney
Business & Commercial
Newcastle's leading experts in legal advice
You may be familiar with a general Power of Attorney, which appoints an attorney to represent and act on behalf of the appointor in specific types of affairs as outlined by the document such as legal, financial or otherwise. Generally, you may wonder why a company would need a power of attorney – a company is not a living person and it can’t lose mental capacity.
What you may find interesting however, is that under Federal legislation, a company is considered a legal person in the eyes of the law. One result of this notion is that a company is considered to have the legal capacity and powers of an individual. This capacity and power is exercised by the directors of a company. However, if the directors cannot act on behalf of the company for whatever reason, it may be suitable to appoint an attorney.
Appointing an attorney confers powers on a nominated person to do things authorised by the Company Power of Attorney document, such as to manage the financial affairs of the company, deal with company shares, and enter into legal agreements. The team at Burgess Thomson can assist you in making this important business decision by helping prepare the Company Power of Attorney, but also helping you consider whether appointing an attorney is appropriate, and what conditions should be imposed on them to protect the company.
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FAQ's
Why would I grant a Company Power of Attorney?
You should consider a Company Power of Attorney if you want to ensure that your company is able to continue operating at full capacity if a director is unable to deal with a certain matter. For example, if your company has two directors but both are overseas on a work related trip, what happens if an urgent matter arises that they are unable to deal with? This is where an attorney would step up to resolve the issue. It is also prudent to appoint an attorney incase any of the directors lose mental capacity or pass away.
Who can I appoint?
You can appoint any adult who is an Australian resident of sound mind. Who you should appoint is a different question. We recommend appointing someone trustworthy, who you are confident could take care of the company and act in the best interests of shareholders.
