A power of attorney is often signed for convenience.
Someone is abroad and cannot attend completion. A property needs to be purchased. A bank account must be managed. A company requires representation. An elderly parent wants help with paperwork. An adviser needs authority to deal with a notary, a bank or a public authority.
At first, it looks like an administrative solution.
Legally, however, a power of attorney is much more than paperwork. It gives another person authority to act on someone else’s behalf. Depending on how it is drafted, that authority may include buying, selling, borrowing, mortgaging, moving funds, incorporating companies, signing tax forms, representing shareholders or appearing before public officials.
The risk is not the existence of the power. Powers of attorney are useful and often necessary, especially in cross-border matters. The risk is signing a document that is too broad, too vague, too old or no longer aligned with the person’s circumstances.
This is particularly important when several countries are involved. A power granted in one jurisdiction may need to be used in another. Notarisation, apostille, translation, local formalities and the exact scope of authority can determine whether the document is accepted by a bank, land registry, notary or public authority. A power that seems routine in one country may be insufficient, or unexpectedly wide, in another.
The choice of attorney also matters. A family member, adviser, employee, business partner or professional representative may be perfectly suitable in one context and inappropriate in another. Where there is age, illness, dependency, family tension or lack of oversight, the same document can create a risk of abuse, pressure or unauthorised action.
Loss of capacity is one of the most delicate scenarios. A power may have been granted when the person was fully capable, but later questions may arise about whether it remains valid, whether it should still be used and whether the attorney’s actions truly reflect the principal’s interests. Without clear limits, convenience can become vulnerability.
For companies and family businesses, powers of attorney can also affect control. Who can sign contracts? Who can bind the company? Who can move funds? Who can represent shareholders? If powers, board resolutions and internal governance documents are not aligned, confusion may arise at exactly the wrong moment.
Good drafting should define the authority clearly. Who may act, for what purpose, within what limits, for how long and with what safeguards? In some cases, it may be appropriate to require joint signatures, transaction limits, exclusions, reporting obligations or periodic review.
Revocation is equally important. Relationships change. Transactions end. Advisers are replaced. Family situations evolve. A power that was useful years ago may become dangerous if nobody remembers that it still exists.
A power of attorney should never be treated as a routine formality. Used properly, it allows efficiency, continuity and protection. Used carelessly, it can transfer control without enough visibility.
The problem is not giving someone authority.
The problem is failing to define it.