Power of attorney in Cyprus – Commentary
A power of attorney can be “general” or “specific”. The main difference between the two is that the former allows the attorney to sign any document on behalf of the principal, while the latter limits the authority of the attorney to the extent specified in the power of attorney agreement. For example, a specific power of attorney may have limits set depending on the nature of the task (e.g. whether it is performed for a certain purpose or to purchase a particular good for a particular price) or according to a time frame (e.g., for two years during the absence of the director). A power of attorney is particularly useful in cases where the person is a person residing abroad and appoints a law firm in Cyprus to act on their behalf for the purpose of conducting their business and affairs in Cyprus.
A power of attorney executed in Cyprus must be signed in the presence of a certifying agent who will certify the signature of the principal. When the power of attorney is executed abroad for acts to be performed in Cyprus, it must be signed in the presence of a notary and be apostilled.
Alternatively, a person can create a verbal fiduciary relationship to delegate the authority to manage their affairs. However, this may be inappropriate as there is little certainty as to the extent and extent of the agent’s powers, which may lead to disagreements with third parties; Both public and private authorities, organizations or institutions are not inclined to recognize an agency relationship in the absence of documentary evidence that authorizes the lawyer to act on behalf of the principal.
By calling on legal professionals, the principal can be assured that his mandate will be carried out correctly. A power of attorney allows another party to perform an act on behalf of the principal in almost any type of transaction or business. For example, if a non-Cypriot national wishes to purchase a property in Cyprus but cannot be present at the time of the conclusion of the contract of sale or the transfer of the property in his name, the buyer can appoint a legal professional as agent for perform the transaction on their behalf.
The appointment of a legal professional to act as an agent (i.e. in favor of the principal, but also because it will make it possible to more easily foresee and mitigate any delays or practical problems that may arise throughout the process.
The general purpose of a power of attorney is to allow people with busy schedules to manage their affairs. In addition, the delegation of powers to legal persons can benefit the principal, since the lawyer will always act in the best interest of the principal; a lawyer has fiduciary duties to the principal and must promote the interests of the principal and not his own or those of a third party. The powers conferred on the agent expire at the end of the mandate of the agent or in connection with the time limits; however, the director can revoke the granted authorization at any time.
For more information on this topic, please contact Andrea Psara Where Ioanna Martidi to AG Paphitis & Co by phone (+357 25 73 10 00) or by email ([emailÂ protected] Where [emailÂ protected]). AG Paphitis & Co’s website can be accessed at www.agplaw.com.