Special power of attorney
Special power of attorney authorizes an agent to ac on behalf of principal. It is a written formal document. Special power of attorney is limited to certain predefined circumstances. For example, board of directors can give special power of attorney to employee who will be authorized to sign money transfers when no directors are present.
Special power of attorney is very useful in the small company when CEO is traveling a lot (e.g. seeking new contracts). It is also useful in large companies, when board of directors is not able to sign every contract with hundreds of customers.
General vs. special power of attorney
General power of attorney is not limited to certain activities. Special power of attorney can be granted to only one activity, e.g. selling a property. To distinguish those two, it is important to very clearly state what are the boundaries of granted power.
- Black, J. A. (2008). The not-so-golden years: Power of attorney, elder abuse, and why our laws are failing a vulnerable population. John's L. Rev., 82, 289.
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