(Querist) 05 May 2009
This query is : Resolved
I would like to know whether one company can appoint another company as its power of attorney / agent to run business on its beahlf. The power will be without consideration and that both the company has one or two same directors.
(Expert) 06 May 2009
Yes company can appoint another company as POA but both company should pass appropriate board resolution with regard to the said transactions.
(Expert) 08 May 2009
under the POA Act, the word that has been used is "Prson" which includes legal entity like compnay so technically there is no such bar to appoint a company as an attorney of another compnay but in practicality if you appoint any other compnay as your attorney, that shall mean that the attorney company again will have to deligate those powers to some individual who can work on those conferred powers. so there would be sub delegation of powers which can make the poa impractical(in spite of inserting CLAUSE authorising the company to sub delegate the powers).