Questions & Answers
Liability of a special power of attorney holder in the company
Hi,
I have been given a special power of attorney by my company owner to represent the company.
However, now that the company is not performing well financially and there is some outstanding to be cleared by the company to service providers like Etisalat and a few others as well.
In such circumstance when the company is liable to pay the amount and the owner is not coming back from India due to medical reasons, what is my position in all this?
Dear Sir/ Madam,
Thank you for getting in touch with me on this.
Please note that you are only given certain rights under the power of attorney and the owners' liabilities, if any, does not attach to you.
Only in certain circumstances are you liable under the power of attorney like if you sign a cheque and it bounces, you do some act for which you are personally liable...etc.
In your case, you won't be liable but the company manager (the person named on the trade license) and the company assets will be charged for the liabilities.
You can get in touch with me on 052-9495731 or email for further assistance or clarifications.
Regards,
Hari Wadhwana
