Why every Company needs a Corporate Power of Attorney

What is a Corporate Power of Attorney?

A Corporate Power of Attorney is a legally binding document that grants a designated individual (known as the ‘attorney’), the authority to act on behalf of the Company. For example, the attorney appointed may be granted the power to sign legal documents and contracts. 



Company directors face many unforeseen circumstances including accidents, illness and death. By designating a trusted attorney to act, directors can safeguard the interests of the Company in critical circumstances by ensuring that the operations of a business can still continue. 

What happens if a Sole Directors dies without a Corporate Power of Attorney?

If a sole director of a company dies without a Corporate Power of Attorney, a ‘legal personal representative’ may apply to the court to appoint either themselves or another nominated individual to be the director of the company.

However, to do so, the legal personal representative must first apply for what is known as a grant of Probate or Letters of Administration of the deceased’s estate which can take between 3-6 months depending on the complexity of the estate. 

A Corporate Power of Attorney is therefore a critical legal document which every company director should consider making to ensure ongoing decision-making powers are in effect. At Kells, our experienced commercial lawyers can work with you to develop a corporate power of attorney that reflects your specific business needs and interests.

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