Corporate POAs for Banking Access, How Companies Delegate Authority for Account Opening & Management

Companies often need people to deal with banks on their behalf. Directors may be based in different countries, travel frequently or oversee several entities at once. At the same time, banks still require original signatures, clear authority and identifiable decision makers. A corporate power of attorney is commonly used to bridge that gap.

A corporate POA allows a company to authorise a named person to open and operate bank accounts in its name. This lets account opening and day to day administration continue without involving directors in every step. This article explains how corporate POAs are used for banking access and the points companies should keep in mind when putting them in place.

What a corporate POA covers

A corporate POA gives a named individual authority to act for the company for specific purposes. In a banking context, that usually means opening accounts, signing account documentation, agreeing mandates and dealing with the bank on routine matters.

Banks rely on the POA to decide whose instructions they can accept. Internal job titles don’t carry weight on their own. If the action isn’t covered by the POA, the bank won’t proceed.

Why companies use them

Availability is the main reason. Directors are often travelling, based overseas or managing several entities at once. Banks still expect original signatures and in person verification at certain stages. A POA allows someone else to handle that without pulling directors into every interaction.

Group structures are another driver. Where payments and reporting are handled centrally, companies often grant limited authority to finance staff rather than appointing them as directors across multiple subsidiaries.

POAs are also used during change. When directors resign, entities are formed or structures are adjusted, a POA can keep accounts operating while formal updates work their way through the bank.

How banks look at POAs

Banks focus on whether the document is valid, clear and consistent with everything else they hold on file. The POA must be issued in line with the company’s governing law and signed by the right people. For foreign companies, notarisation and legalisation are often required.

The wording is also important. Banks want to see exactly what the attorney can do. Broad or unclear authority usually leads to questions. Banks also check whether the authority applies to all accounts or only specific ones.

Just as importantly, the POA must line up with board resolutions and account mandates. If those documents point in different directions, the process usually stops.

Scope and limits

Most banking POAs are limited by design. Companies tend to grant authority for defined actions rather than general powers.

Transaction limits are sometimes included, particularly where junior staff are appointed. These need to reflect real payment levels. Limits that are set too low tend to cause frustration and repeated escalations.

Another decision is whether the attorney can delegate authority further. Many banks are uncomfortable with this and prefer authority to sit with the named individual only.

Oversight doesn’t disappear

Delegating authority does not shift responsibility away from the board. Directors remain accountable for the company’s banking arrangements.

POAs should therefore be approved by board resolution and reviewed from time to time. Directors should be clear on who has authority, for what and why. As the business changes, those decisions may need to be revisited.

Where problems usually arise

Issues tend to come from drafting and follow up rather than from the concept itself. Authority that’s too wide can expose the company to risk. Authority that is too narrow can slow down routine activity.

Expiry dates are another common problem. Some banks prefer POAs with a fixed term. If those expire unnoticed, account access can be suspended until replacements are provided.

Revocation also needs care. When an attorney leaves or changes role, the POA should be formally revoked and the bank informed. Until that happens, the bank may continue to rely on it.

Cross border points

Where companies and banks are in different jurisdictions, local requirements often dictate the form of the POA. In the UAE, foreign POAs are commonly required to be notarised and attested before banks will accept them. Some banks also ask for Arabic translations.

Local practice also plays a role. Banks may be cautious about granting wide authority to individuals who aren’t directors or formally registered managers. Accounting for this early avoids rework later.

Keeping authority current

POAs shouldn’t be treated as static documents. Changes in staff, transaction volumes or banking relationships can all affect whether existing authority still makes sense.

Keeping a central record of POAs, board approvals and bank confirmations helps. Where multiple banks are involved, consistency across institutions reduces friction.

Used properly, corporate POAs are a practical tool. They work best when they are reviewed occasionally and adjusted as the business changes.

How POA UAE can help

POA UAE advises on the form and scope of powers of attorney used for banking and corporate purposes, helping avoid delays caused by documents that do not reflect UAE practice or the transaction involved.

We draft POAs with clear authority and appropriate duration, and manage notarisation, attestation and translation. We also work with advisers to help ensure the authority granted is accepted by banks and relevant authorities. For support, contact info@poauae.com.