Why special power of attorney matters to a first-time founder
It can keep a transaction moving when a founder or director cannot act personally, while limiting the representative to named tasks. Poor drafting can authorise too much, too little or the wrong person. Banks, registries and counterparties may require particular wording, identity checks, witnessing or legalisation.
Examples of special power of attorney
A founder travelling abroad authorises a solicitor to sign one specified property lease for the company before 30 November, up to annual rent of ₦40 million. The document does not permit borrowing, selling assets or delegating the authority. The landlord checks the original and the company’s approval records before completion.
Common misunderstanding
It is not general permission to manage every personal or business matter. The authority is confined to the acts, limits and period written in the document. It also does not override company approval rules or automatically remain valid after incapacity, revocation or death; local law determines those effects.
When to use it
Use one for a defined act when the person who would normally sign cannot do so. Specify the transaction, powers, limits, expiry and whether delegation is allowed. Obtain local legal advice and confirm the recipient’s formal requirements, because execution, notarisation, registration and revocation rules vary by jurisdiction.