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ARTICLE · 12 FEBRUARY 2024

Powers Of Attorney – Some Important Aspects

Grant of authority by one person to another to act on their behalf can have significant consequences, both for the issuer and the person so authorised.

IndiaCorporate/Commercial Law

Introduction

Grant of authority by one person to another to act on their behalf can have significant consequences, both for the issuer and the person so authorised. Irrespective of the purpose for issuing a power of attorney, the extent of powers granted pursuant to a power of attorney, or the duration of its validity, it is important to be advised of the consequences and responsibilities attendant to a power of attorney.

This Article examines issues that ought to be considered by the issuer and the holder of a power of attorney.

What is a power of attorney?

The Powers-of-Attorney Act, 1882 ('POA Act') contains the law relating to powers-of-attorney. Under the POA Act, the holder (or donee) of a power-of-attorney may, if he thinks fit, execute or do any instrument or thing in and with his own name and signature, and his own seal, where sealing is required, by the authority of the issuer (or donor) of the power; and every instrument and thing so executed and

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