Further powers: Overview, definition, and example
What are further powers?
Further powers refer to additional authority or capabilities granted to an individual or entity, typically in a legal, business, or contractual context. These powers extend beyond the original scope of authority, providing the recipient with the ability to perform specific actions or make decisions that were not initially included in their original mandate or agreement. The grant of further powers is often subject to certain conditions and may be used to ensure flexibility and adaptability in various situations.
Further powers are commonly outlined in legal documents, contracts, corporate governance documents, and other formal agreements to allow for the delegation of additional responsibilities or actions as needed.
Why are further powers important?
Further powers are important because they provide the flexibility to handle unforeseen circumstances or new opportunities that may arise after the original agreement or appointment. In business and legal contexts, the need for further powers allows individuals or entities to respond to changes in the environment or specific needs without having to renegotiate or create new agreements.
For example, in corporate governance, a board of directors may grant further powers to an executive or manager to take actions beyond their original role in response to new business conditions. Similarly, in legal matters, further powers can be granted to an agent or representative to act on behalf of a principal for specific purposes that were not originally anticipated.
Understanding further powers through an example
Imagine a company hires a manager to oversee a particular department. The manager’s original powers are clearly defined, including managing staff and overseeing day-to-day operations. However, during a financial downturn, the board of directors grants the manager further powers to make decisions related to budget cuts, staffing changes, and cost-saving measures. These additional powers enable the manager to take immediate and necessary actions without having to go back to the board for approval each time a new decision is required.
In another example, a lawyer may be given a power of attorney by a client to handle their legal matters, but the power of attorney document also includes provisions for granting further powers. If the client faces an urgent situation, the lawyer can take additional actions beyond those originally stated, such as signing documents or making decisions that were not anticipated at the time the agreement was made.
An example of a further powers clause
Here’s how a further powers clause might appear in a legal or business agreement:
“The Officer shall have the power to perform the duties and responsibilities outlined in this Agreement. Additionally, the Officer shall be granted further powers to take actions and make decisions that may arise in the course of business, provided these actions are in line with the strategic goals of the Company and are approved by the Board of Directors.”
Conclusion
Further powers are essential for providing the flexibility and authority needed to address unexpected events, new opportunities, or evolving circumstances. Whether in business, legal, or governance contexts, the ability to grant further powers allows individuals or entities to act swiftly and effectively without requiring constant reauthorization. Properly defining the scope of further powers in agreements ensures that these additional authorities are exercised within appropriate boundaries and that all parties involved understand their roles and limitations.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.