ACM LEGAL

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THE IMPORTANCE OF THE POWERS OF ATTORNEY GRANTED BY THE COMPANY

A fundamental part of the proper operation of legal entities in Mexico is based on the granting of powers of attorney that these carry out in order make the commercial operations in which they are involved more fluent. 

The powers of attorney are generally granted in favor to key personnel for certain areas of the company such as sales, operations, acquisitions and all other where it is necessary to bind the company before third parties.

Now, within the operational importance of granting powers of attorney in favor of key personnel of the company, it is also of utmost importance to follow up the revocation of the powers of attorney granted to the individuals who, due to any reason cease their labor relationship with the company since due to the lack of revocation,  the company finds itself exposed to potential contingencies which may affect it, such as:

 a)Financial contingencies, since the lack of revocation to any ex member of the company, triggers the risk that such member remains binding the company without its authorization or prevention, in addition to the fact that the relevant ex member may request payment in favor of the Company due to any obligations and fail to deliver such funds to the company, in other words, this may represent financial losses for the Company.

 b)Legal contingencies, since due the lack of control on powers of attorney revocation, the company may acquire obligations of which it has no knowledge through the ex members of its team, being such acquisition totally legal and being the company bound to comply with them.

 c)Reputation contingencies, since an agreement executed by an individual who is no longer a member of a company but has a valid power of attorney may generate the feeling of lack of control in addition to the possibility of compliance refusal by the company, the idea that the company fails to comply with its obligations may be generated to the outside of it, impacting directly in the company´s business.

At ACM Legal we can assist you keep accurate control of the powers of attorney granted by your company since we have the electronic infrastructure which enables us to support you in powers of attorney and agreement administration respectively.

 For further details, please contact the undersigned at 403.07.25 ext. 105 or at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Sincerely,

Carlos. A. Trosino

Partner