News & Training
Question: Can I Give Power of Attorney to my Orange County Small Business Corporation?
Answer: You may Permit a Corporation to Act as your “Attorney In Fact”
A durable power of attorney is a written document by which one person permits another person to act as his or her agent notwithstanding (or as a result of) the first person’s subsequent incapacity [California Probate Code §§ 4022 (“power of attorney” defined), 4124 (“durable power of attorney” defined)].
The person who confers the authority is the “principal” [California Probate Code § 4026], and the person on whom the authority is conferred is known as the “attorney in fact” [California Probate Code § 4014].
For example, a bank or trust company (perhaps one that has also agreed to serve as trustee under a trust created by you) may in some cases be willing to act as an attorney in fact under a durable power of attorney.
Many business banks have trust departments with highly trained trust officers with experience advising small business corporations who will be able to give additional guidance at the time the specific powers are drafted.
Some people will choose to write a power of attorney using a form purchased from a stationery store. Because you are permitting someone else to make (or something else – a corporation) to step into your shoes and make legal decisions or business decisions for you, it is a wise practice to retain an Orange County Business Attorney or an Orange County Corporate Attorney to draw up, or at a minimum, review the power before it is signed.
The selection of an appropriate attorney in fact is essential if the principal is to receive all of the desired benefits of the durable power of attorney. An attorney in fact must be both able and willing to act on the principal’s behalf.
It is generally best if the attorney in fact is located in the same county and state as the principal. This may be problematic if choosing a corporate entity so make the decision carefully.
Andrew Gale – Incorporation Attorney
Attorney at Law Offices 1820 West Orangewood Avenue, Suite 104a, Orange, CA 92868 Office: +1 (714) 634-4838. I provide legal advice, counseling and related services to entrepreneurs including the formation and management of their corporations and estate plans.
My Law Office is based in Orange County California and I have practiced law for 30 years. I have given advice to more than 1000 small business owners on the best ways to set up a company, what types of business entities (corporations, limited liability companies, partnerships) are best suited for them and their small business, how to legally run the business to protect their assets and how to successfully transfer the business to family or key employees through the proper use of estate planning and trusts.
