Power of Attorney for Businesses?

Question

Hi, I need to write a letter where the board authorizes individuals to sign contracts up to a certain value. These persons are in a temporary project organisation within the company. What kind of letter would this be - I assume it is the corporate equivilant of a Pwer of Attorney but it must have another word?

Answer 1

I don't think you're looking for a power of attorney.  I think you need to draft a "corporate resolution" for the board of directors to sign that would authorize certain defined individuals to enter into contracts on behalf of the company up to a certain dollar value for certain defined purposes and for a certain period of time not to exceed ____.  

The document would be titled "Resolution of the Board of Directors" - you could put in some "Whereas" clauses (for example, "Whereas, the board of directors believes it would be in the best interest of the Corporation to permit ____ to enter into contracts of up to $____" and "Whereas ____", the Board of Directors hereby adopts the following corporation resolution this ___ day of _____, 2008.

"The individuals list on the Exhibit A attached to this Corporate Resolution shall have the authority to bind the Company to a contract not exceeding $_____ for the purpose of _________.  This authority shall expire on _________ unless further authorization is made in writing by the board of directors."

Yada yada yada - you get the idea.