What Are General Powers Of Attorney?
A power of attorney, also referred to as a general power of attorney, is a document that allows one party to give another the power to act on their behalf and in their name.
A general power of attorney should be contrasted with a Lasting Power of Attorney.
Powers and uses of General Powers of Attorney
The powers provided within the general power of attorney can be general or limited to only one specific power. There are legal limits on the powers that can be given under a general power of attorney, and in addition to this, the specific wording of the general power of attorney must be carefully considered to establish what powers have been granted.
They are most often used in transactional and commercial or corporate circumstances such as: the signing/execution of deeds or contracts when one person cannot be present; to allow members of a partnership to conduct their business efficiently; to give the power to exercise rights to shareholders not yet registered; or to appoint a proxy to act on behalf of a shareholder.
They are however, also often used to enable an individual’s personal business to be carried in their absence (for instance, if they are travelling abroad for an extended period).
You should note that a general power of attorney automatically ceases to have effect if the donor loses mental capacity. Please refer to our information sheet on Lasting Powers of Attorney referred to above if you want to make provision for what happens should you or a loved one lose mental capacity.
How to create a General Power of Attorney
For a valid general power of attorney to be drafted, specific legal conditions must be satisfied and it is advised that you seek professional advice.
Get in Touch
Our General Power of Attorney Team is part of EMW Wealth. Take a look at the EMW Wealth Brochure here.
Our team are experienced in advising on all matters relating to general powers of attorney. Should you have any queries in relation to any of the points mentioned within this information sheet please do not hesitate to get in touch with Daniel Wilson.
The information contained in this leaflet is or general information purposes only and is not legal advice, which will depend on your specific circumstances. © 2021 EMW Law LLP