The power of attorney plays a pivotal role in any company as it is a legal document that gives legal authority to someone to participate in the affairs of the company whether financial or any other business related. The giver of the authority is called principal whereas the receiver is called an agent imparted with certain roles and responsibilities. The essay draws attention towards the importance and implications of the power of attorney and will answer some of the questions understood through the material available regarding the power of attorney.
Some companies are involved themselves in making decisions for the company and some hire legal lawyers for decision-making. Companies pay ample amount of consideration while handing over the authority to the third person to make legal decisions and defend the company in controversial situations. The person willing to be the attorney of power has to agree to the demands and requirements lay out by the company. The vital responsibility of an agent is to agree in accordance with the company’s rules and regulations. An agent has to help the principal in making important financial decisions or other decisions where the principal does not have an understanding of the matter.
There are different types of agents, and their duties vary accordingly. The types of power of attorney include non-durable, durable, special/limited, medical, and springing power of attorney. Some agents might make banking decisions on behalf of the principal or legalize various projects for the company. Through the understanding established, the power of attorney should be given to the third person who has greater knowledge and experience of the field. For instance, a doctor willing to open up his clinic in a remote area needs to hire an agent to give him insight regarding other clinics operating in that particular field. For such businesses, non-durable type of power of attorney would be best, where the agent will make decisions for a set period. It is opinionated that while setting up any business, hiring an agent and implementing the power of attorney is a good start (The Law Donut, 2016).
Reference List
The Law Donut. (2016). Lasting power of attorney responsibilities. Retrieved from http://www.lawdonut.co.uk/law/personal-law/powers-of-attorney/lasting-power-of-attorney-responsibilities
