Power of attorney

V.PAVAN KUMAR (Querist) 02 May 2012 This query is : Resolved
Respected Sir,

The Director of the Company has issued General Power of Attorney in favour of President of the Company to do various acts, deeds and things as it is necesary for day to day affairs of the company, with ref. to Board Resolution passed on so and so date.

In this GPA, President has authorised to delegate all or some of the powers to any person/ persons to do the things/ deeds on behalf of the company in day to day operations of the company.

Under these circumstances, please give your valuable guidance whether President (who has delegation power under GPA) can issue Power of Attorney in favour of one of his employees for attending/ respresenting on behalf of the company, before Any Govt.Authority.

Regards,
V.PAVAN KUMAR

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Arvind Singh Chauhan (Expert) 02 May 2012
If is is clearly mentioned in GPA that GPA holder can delegate power to another, it can be.

Sailesh Kumar Shah (Expert) 02 May 2012
In case of company, instead of Power of attroney, It is only suffice to pass resoultion in the board meeting to do such work.

Suhail A.Siddiqui (Expert) 02 May 2012
GPA must support with Board resolution and such resolution will be bible to know about the powers work execution.

Devajyoti Barman (Expert) 02 May 2012
Repeated query on the same point.

Adv.R.P.Chugh (Expert) 02 May 2012
Dear Mr.Kumar,

General Rule is delegatus non potest delegare - a delegate cannot delegate further (S.190 ICA) however if the contract of agency (POA in this case) itself makes an exception - sub agency may be created.

In this case Certainly he can - the President acts as the agent of the company by virtue of POA - as he is authorised to do so - he can create what is technically known as sub-agency - and delegate work. The president would be liable to the company for the work and acts of the sub-agents appointed by him. Though the company would be liable towards 3rd persons for the acts of such sub-agents if done within the area of their authority.

Feel free to talk !