This Indian Law power of attorney is for when a company gives authority to a general manager to transact business on behalf of the company – for example, to make financial decisions and to sign agreements on behalf of the company.
In 13 clauses, it addresses a range of functions that the manager may be required to perform: from negotiating contracts to taking responsibility for customs documents, vakalatnama (memoranda of appearance), and granting authority to other company employees.
The range of activities which the attorney is authorised to transact and sign include:
- Negotiating and signing contracts for the sale of the company’s products
- Signing bonds, indemnities and guarantees
- Buying and selling property
- Registering contracts and other documents
- Dealing with export and customs
- Issuing refund orders
- Submitting bids and tenders
- Signing affidavits and documents related to claims and proceedings
- Entering into contracts
- Representing the company before any judicial and other authorities and central and state government departments
- Signing applications and other documents relating to utilities services
- Giving authority to employees of the company
There is also a general clause giving wide authority to the attorney to act in the name of the company.
A Power of Attorney (also referred to as a PoA) in India is an authority given by an instrument by one person, called the donor or principal, authorising another person, the donee, attorney or agent, to act on his behalf. The Power of Attorney gives legal authority to the other person (called the Attorney-in-Fact) to make property, financial and other legal decisions for the principal. The Power of Attorney is frequently used to assist in legal transactions where the principal cannot be present to sign necessary legal documents.
A principal can give an Agent broad legal authority, known as a general power of attorney, or very limited authority – a special power of attorney. If the powers given are not general in nature, the mere fact that wide and full powers have been conferred upon the donee with regard to a specific matter does not make the power of attorney a general power of attorney. The word “General” in general power of attorney connotes that the powers given by it must be general with regard to the subject-matter. Our document is a General Power of Attorney for the general manager of a company. The term ‘General’ is used to distinguish it from a “Special” power in India. It covers broad powers conferred by the Board of Directors of a company through a Board Resolution. Without a Board Resolution the Power of Attorney is not valid.
The power of attorney is a unilateral document executed by the donor or principal, who gives authority to the agent so appointed to act on their behalf.
PERSONS COMPETENT TO GIVE POWER OF ATTORNEY
The power of attorney in this case is given by a company and it should be executed under its common seal, and in conformity with the Articles of Association of the company. A partnership firm or unincorporated associations may also execute power of attorney to do acts on their behalf.
AUTHENTICATION OF POWER OF ATTORNEY
As this power of attorney authorises a person to present a document for registration, it must be executed and authenticated by a Registrar or Sub-Registrar of Assurances.
REVOCATION OF AUTHORITY
The authority given by a general power of attorney continues until it is revoked or any of the parties dies, unless it is given for a limited period. A special power to do an act is determined after the particular act is done. The authority can be revoked expressly or impliedly by the conduct of principal or agent. The authority cannot be revoked after the authority has been partly exercised so far as regards such act or obligations as arise from facts already done in agency. The principal should give reasonable notice to the agent before termination of the agency and if the agent is not aware about the termination and he does any act in pursuance of the power of attorney, the act will not be invalidated.
Stamp duty is chargeable on a power of attorney is chargeable in terms of Article 48 of Schedule 1, Indian Stamp Act, and the amount is different in different States.
As a general rule, a power of attorney is not required to be registered. However, if the power of attorney gives authority to present a document for registration, it must be executed before and authenticated by the Registrar or Sub-Registrar. (You will find information on registration of documents in India at: http://www.dateyvs.com/gener11.htm ).