A power of attorney is a legal document that gives authorisation to someone to act on behalf of the business. Typically, the authorisation document carefully details the transactions and processes for which the person is being granted power of attorney, rather than giving a general mandate that would allow the agent to act completely freely.

Power of attorney provides legal authority for a person acting as an agent. For a business, this authority can encompass the ability to access financial accounts, sell securities or place new orders and write cheques, although the agent may also perform a range of other activities to keep the business running. For security reasons, a power of attorney should strictly limit the agent's activities or access to specific accounts.

The main advantage of a power of attorney for a business bank account is that it gives you the security of a back-up plan in case the owner of the business or other authorised persons are unable to fulfil their tasks.