Why attorney-in-fact matters to a first-time founder
An attorney-in-fact can sign documents or take other authorised actions for a person or organisation under a power of attorney, the legal document that grants the authority. Founders may encounter the role in banking, transactions or temporary delegation. The authority can be narrow or broad and must be checked against the actual document and governing law.
Examples of attorney-in-fact
A US founder grants a trusted executive a limited power of attorney to sign specified property documents during an overseas trip. The executive acts as attorney-in-fact only within that authority. The document may impose dates, conditions, notarisation or recording requirements under the relevant state law.
Common misunderstanding
An attorney-in-fact is not necessarily a lawyer and is different from an attorney-at-law. The title does not create unlimited authority. Powers of attorney, the agent’s legal duty to act loyally for the person granting authority, acceptance and termination vary by jurisdiction. Banks and other third parties may also require particular forms or evidence before accepting the appointment.
When to use it
Use the term when a valid power of attorney appoints an agent to act for a principal. Define permitted actions, duration, delegation and revocation carefully. Obtain local legal advice for corporate, property, financial or cross-border powers rather than copying a form from another jurisdiction.