Types of Powers of Attorney

Types of Powers of Attorney

From a legal perspective, powers of attorney exist in several forms, including banking powers of attorney, those issued within correctional facilities, those issued in medical institutions, and judicial powers of attorney. Each category has specific applications and legal validity requirements.

What types of powers of attorney exist?

• Official Power of Attorney: An official power of attorney is issued through notary offices or other authorized governmental institutions such as embassies and consulates abroad. The principal must clearly specify the scope of authority granted to the attorney within the document. Financial institutions and other entities may act strictly in accordance with the powers expressly granted in the document. In Islamic banking systems, banks may act as agents for account holders or depositors in certain financial transactions. In such cases, contractual agreements often designate the bank as an agent with authority to delegate representation to another party. Therefore, an attorney authorized to conduct banking transactions on behalf of a principal must also possess explicit authority to delegate powers to third parties where required.
• Ordinary Power of Attorney: All powers of attorney that are not issued as official or judicial documents are generally classified as ordinary powers of attorney.

Specialized Powers of Attorney in Legal and Criminal Matters

• Banking Power of Attorney: Banks provide standardized printed forms enabling customers to appoint representatives for banking transactions. The signatures of both the principal and the appointed attorney must be certified by a notary office before submission to the bank.
• Powers of Attorney Issued in Correctional Facilities: Prison inmates may issue powers of attorney within correctional institutions. The inmate’s signature must be verified by the prison authority.
• Powers of Attorney Issued in Hospitals: Individuals receiving medical treatment who are unable to personally manage legal or financial affairs may appoint an attorney through a hospital-issued power of attorney. The patient’s signature is typically certified by hospital administration.
• Judicial Power of Attorney: Judicial authorities may appoint a legal representative to manage the affairs of individuals who are legally incapacitated. Under Article 231 of the Probate Code, a trustee appointed by a court to administer the property of an incapacitated individual is treated as a legal representative with rights and responsibilities equivalent to those of an attorney.

Duration of Powers of Attorney

A power of attorney may be granted for a fixed period or without time limitation. When granted for a specified duration, it is essential to clearly define the expiration date and establish appropriate administrative procedures for termination or renewal.

Methods of Granting Powers of Attorney

• Power of Attorney from One Individual to Another Individual: When an individual intends to authorize another person to conduct banking or commercial transactions, including signing financial or commercial documents, official or banking powers of attorney are generally required.
• Power of Attorney from a Company to an Individual: When a company grants authority to an individual, the company’s articles of association must be reviewed to determine whether the board of directors is authorized to delegate such powers. The duration of delegated authority must not exceed the term of authority granted to the board of directors, as established by shareholder resolutions. Companies often provide copies of such resolutions to financial institutions.
• Power of Attorney from an Individual to a Company: When individuals appoint companies as legal representatives, the company’s governing documents must explicitly authorize acceptance of representation and management of financial or legal affairs on behalf of clients.
• Power of Attorney from One Company to Another: When authority is delegated between companies, both entities’ corporate charters must be reviewed to confirm that such delegation is authorized by the boards of directors. The scope and duration of authority must be clearly defined in the power of attorney document.

Methods of Termination of Powers of Attorney

A power of attorney may be terminated under the following circumstances:

• Written revocation by the principal. If the power of attorney is official, revocation must be registered through a notary office.
• Death of either the principal or the attorney.
• Legal incapacity or mental incompetence of either party.
• Resignation of the attorney.
• Expiration of the specified term of representation.
• Completion or termination of the subject matter of representation. In banking matters, closure of an account by either the principal or attorney typically results in termination of related authority.

Frequently Asked Questions About Powers of Attorney