Why power of attorney matters to a first-time founder
A founder may need someone trusted to sign documents, manage an account or complete a transaction during illness or travel. The authority can keep urgent work moving, but broad wording can expose the company or founder to serious misuse. Scope and safeguards matter.
Examples of power of attorney
A founder relocating for three months authorises a solicitor to complete one property lease up to ₦24 million a year. The document names the premises, limits the rent and expires after 90 days, preventing the solicitor from signing unrelated contracts or borrowing money.
Common misunderstanding
It does not transfer ownership or remove the original person’s ability to act. The appointed person must stay within the authority granted. Different forms may continue or end if the giver loses capacity, and company signing authority may follow separate rules.
When to use it
Use it for a defined transaction or continuity need when personal attendance may be impossible. Take qualified legal advice, choose the representative carefully and set limits, expiry and reporting duties. Form, witnessing, registration and capacity rules vary substantially by jurisdiction and purpose.