What is a General Power of Attorney?
A General Power of Attorney (POA) is a legal document that allows a company to give someone else (called an attorney) the power to act for the company. The attorney can:
- sign contracts;
- handle money matters;
- buy or sell on behalf of the company; or
- make business decisions.
The attorney can step in and do what the company needs, within the limits set out in the document. The company stays in control – it is just giving someone else permission to act on its behalf, usually to make things easier or more efficient.
We recommend you definitely have one in place if your company only has one director and that director makes day-to-day decisions on behalf of the business.
When would a company use a POA?
Directors should consider putting in place a POA for the following:
- a company director is overseas and needs someone to sign documents while they are away;
- the company is controlled by 'mum and dad' who usually travel together;
- the company has only one director and wants a contingency plan if that director cannot act for the company for any reason; or
- the company needs someone to handle a specific transaction, such as buying or selling land.
Can you cancel it?
Yes! A company can cancel (revoke) the POA at any time – as long as the company lets the attorney know.
Importantly, it is your company's name on the line, so make sure the person you appoint is up to the task and someone you trust.
Why you should get MDL to draft your POA
We can ensure that:
- You avoid costly mistakes: If the document isn't worded correctly, or doesn't meet legal requirements, it could be invalid or worse, lead to unintended consequences.
- The document is tailored to your business, making sure it includes exactly what powers you want to give (and what you don't).
- The POA complies with the law.
- If the POA will be used to deal with real property in Queensland, it will need to be registered with the Titles Office. We can arrange this on your behalf.
What next?
A POA is a useful tool to ensure someone is always there to act for your business when needed.
If you believe a POA may be beneficial to your business, contact the Estate Planning Lawyers at MDL to discuss.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
