Introduction
In this article I explain the two types of powers of attorney. A power of attorney is a legal document that authorizes another person, called an agent, to act on behalf of the person granting or creating the power of attorney, called the principal, in the event that that the principal is not in a position to personally make the decisions or perform the acts, normally through distance or unavailability. The principal will be bound by the decisions or acts of the appointed agent.
There are two types of powers of attorney known as general and special and more fully explained below. The simple distinction is that general powers of attorney give general or broad authority to the agent whereas special powers of attorney give limited or narrow authority.
Information found in a power of attorney
A power of attorney, whether general or special, usually include the following information:
- Heading which indicates whether it is general or special.
- Details of the principal granting the powers, being full names, date of birth, identity numbers, address, telephone numbers, etc.
- Statement to the effect that the principal nominates, constitutes and appoints the agent.
- Details of the agent being granted the powers, being full names, date of birth, identity numbers, address, telephone numbers, etc.
- Clear description of the powers being given and will show whether the powers are general or special.
- That the principal will ratify decisions or acts done by the agent pursuant or in line with the signed powers of attorney.
- Place and date where the powers of attorney were executed.
- Name and signature of the principal.
- Signature and stamp by a commissioner of oaths. If the document is to be used in another country it has to be commissioned by a Notary Public.
General Powers of Attorney
In the general power of attorney the heading will show that the power of attorney is general. It is common to find examples of the following wording to show that it is general or wide in nature.
“To be my Attorney and Agent with full powers to act on my behalf and in my stead, as if I were present, and to exercise or perform the acts or powers I have designated herein…..”
“To be my Agent with full powers to manage my affairs in Zimbabwe whilst I am away….”
It is common to find some general powers of attorney that exclude certain decisions or powers which would ordinarily would require special powers. Example of such exclusions may include sale or leasing of properties, sale of shares, significant investment decisions, etc.
Special Powers of Attorney
In the special power of attorney the heading will show that the power of attorney is special.
Wording in such documents may include the following:
“To be my Special Attorney and Agent for managing and transacting all my affairs and signing all the relevant documents in connection with the sale by me of a certain property known as ….”
“And to attend ZIMRA interviews for Capital Gains Tax and to do all that is necessary and sign documents to give transfer of the property to the purchaser”.
“To be my Special Attorney and Agent for purposes of replacing lost original Deed of Transfer number ….”
When Special Power of Attorney is required
There are instances when General Power of Attorney is not accepted and a Special Power of Attorney has to be provided. The most common example is when a principal is selling a property. An agent can be appointed to handle the whole transaction from start to finish or parts of it such as for capital gains tax or to give effect to the transfer. The special power of attorney will restrict the agent to the particular situation or transaction.
Conclusion
When powers of attorney are required one should always establish whether what is required is general or special.
Disclaimer
This simplified article is for general information purposes only and does not constitute the writer’s professional advice.
Profile
Godknows (GK) Hofisi, LLB(UNISA), B.Acc(UZ), Hons B.Compt (UNISA), CA(Z), MBA(EBS, Heriot- Watt, UK) is the Managing Partner of Hofisi & Partners Commercial Attorneys, chartered accountant, insolvency practitioner, registered tax accountant and advises on deal and transactions. He has extensive experience from industry and commerce and is a former World Bank staffer in the Resource Management Unit. He writes in his personal capacity. He can be contacted on +263 772 246 900 or gohofisi@gmail.com
