About the Power Of Attorney By Company

What is a Power of the Attorney?

A Power of Attorney gives someone the authority to do things on behalf of the Company - "You stand in the shoes of the Company." For example, the person you appoint can sell and buy another factory on behalf of the company. With a Power of Attorney you as a director can go on holidays and for period of time somebody else can run the company as attorney for the company.

Why should your Company give a Power of Attorney?

As a proper asset protection strategy your company should only have one director. As a hard working ‘man’, you need some extensive holidays overseas. There is the World Cup in Germany, the Tour de France in France and Wimbledon in England, not forgetting the Cricket, and a two month trek through the Amazon Jungle!

All good reasons to leave the country for a while.

But your company cannot stop acting just because you are away, or unable to act for other reasons. Further you prefer not to be disturbed while you are away.

A company acts through its director(s). If the director(s) are not in the country, the company cannot act. The person / people you nominate as having Power of Attorney can act for the Company, while you, as director are away on your well earned holiday.

Section 124 of the Corporations Act gives a company the legal capacity and powers of an individual both in and outside this jurisdiction. As a consequence, a company can appoint agents, attorneys, whether individuals or other bodies corporate, because it has been given the power of an individual under section 124 Corporations Act.

The Directors may, by power of attorney, appoint any person to be the attorney of the Company for the purposes and with the powers, authorities and discretions held by the Directors for the period and subject to the conditions that they think fit.

The same arguments would apply if the company has two directors and one is away. Therefore it is always worthwhile having the Power of Attorney.

Only $99.00 for a peace of mind! Money well spent.