Power of Attorney (PoA) is the legal authorisation to represent or act on another’s behalf. Most people are somewhat familiar with domestic PoA, but there are a wealth of situations where it is beneficial to appoint a PoA in a commercial or business setting too.

Commercial PoA is normally appointed by a company director, allowing another person or persons to carry out responsibilities on their behalf, and can be highly customisable to fit the needs of the business or organisation.

Here we share five key scenarios where a commercial PoA is useful for business affairs.

1. When an urgent signature is required

It isn’t uncommon for instances to occur in a commercial environment where an important document requires an urgent signature. If the primary signatory, often a company director, is not available, having a trusted individual appointed as a PoA allows them to sign the document in the director’s absence.

2. When regular signatures are required

The business may regularly issue large numbers of documents that need to be signed but are routine and do not need the attention of a director to explore each one individually. When a director is unavailable, whether they’re in the office but preoccupied, or perhaps away from the premises entirely, having a senior member of staff who understands the ins and outs of these documents and is empowered by a PoA to sign for the company, can be very beneficial.

3. For assistance outside of trading hours

While a business's modus operandi may be 9am until 5pm, any company director will tell you that there are always exceptions to this rule. A contract may need signing, a client document may need extra attention, or a deal may need to be finalised - and these ‘extra-curricular’ activities don’t always fit neatly into traditional office hours.

By appointing one or more members of staff to act under a PoA during out-of-hours, the business can be confident that there is a reputable staff member available at all times to address any problems or urgent matters. This is especially beneficial if the business liaises with trading partners abroad in different time zones.

4. If the director is out of the office

For a business owner, company director, or partner who is often away from headquarters, perhaps as an international sales director, or perhaps someone who owns a second home abroad, having a legal deputy to act in their absence is a boon. There may be a PoA set up long-term to accommodate a director who is regularly out of office, or a temporary PoA may be granted for the agreed period of absence. This can be an effective way to ensure the director is not disturbed whilst out of the office, for instances such as a honeymoon or grievance leave.

5. If the director goes on long-term sick leave

Far-sighted business owners or directors may put a PoA in place to act as a hedge against their own illness or injury, ensuring that in these unfortunate instances, their company has an individual appointed to keep things running smoothly until they are able to return. If the director sadly needs to retire due to ill health, the company must continue its business until a successor or a buyer is found. Having a senior staff member with PoA provides the ideal solution here.

Is a PoA right for your business?

These scenarios are just a few of many examples where appointing a PoA is beneficial in commercial settings. No matter the size or nature of the business, if there is any risk of a director (or another main decision-maker) being unavailable at a critical moment, then having a PoA in place is both prudent and pragmatic.

Need more information about commercial PoA? Contact us today.