Seven Tips for Drafting A China POA

All China POAs, regardless of whether the matter is simple or complicated, must meet a few basic requirements in order to be effective.

1. The duties delegated by the POA must be within the authority of the principle. Obvious right? You can’t you can’t sign a POA to authorize someone to act on behalf of Alibaba unless you are Jack Ma. This will also apply where the POA purports to give someone the ability to perform something illegal. The POA will not be effective

2. The duties delegated by the POA must be clear and proper. If the POA has not specified the matters entrusted clearly and properly, then it will be impossible to determine whether the action of the attorney is within the authority of the principal, and the POA will be invalid

3. The format of the POA shall be legal. Seems like a no brainer, except that there’s not exactly a clear definition of a “legal” format for a POA.

4. Introduction of the principal and designated “attorney”. The POA should state the full name, identification number, and other relevant identification information of both parties. It is important to note that if the principle is a company, the Legal Representative or other management personnel must be named in the POA.

5. List the matters of entrusted. This requirement is somewhat duplicative of the “clear and proper” requirement, but you get the idea that stating things clearly in the POA is very important, right? All matters that the principal requires the attorney to handle on behalf of him/her shall be listed in the POA to clarify the limit of the authority. Rather than stating an end goal the attorney is authorized to perform, such as sale of a house, it is recommended to clearly list each step of the expected transaction and clarify the attorney’s authority as to each.

6.Stipulate the term of POA. The POA should state a term within which the Attorney must complete the entrusted matters, or it can simply include an expiration date.

7.Execution of the principal. Obviously, the POA must be duly executed by the principal. If the principal is an individual, the POA must be signed by this individual. If the principal is a company, the POA must be signed by the Legal Representative or other person in authority of the company, and it must be affixed with the official seal of the company.

Talk to your China lawyer. Of course, if you need a POA, it’s best if you contact your China Lawyer to write something up. A lawyer will have more information about the detailed requirements and procedures of whatever it is you want the designated attorney to accomplish, so they may be better at listing out the acceptable actions of the attorney within the POA to ensure the document is written clearly.

Published by Myra Kong on January 9th, 2017 tagged China News

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