Civil Code Commercial Seal Enforcement Rules for Procurement Officers
Civil Code commercial seal rules tie contract validity to corporate authorization, requiring procurement officers to verify seal registrations and legal representative mandates.
Power of Attorney
Meaning
Legal instruments for the delegation of authority permit an agent to act on behalf of a principal in administrative or commercial matters. A power of attorney must specify the exact scope of the granted powers and the period during which the agency remains valid. For foreign parties, these documents frequently require notarization and legalization to be recognized by Chinese authorities.
Delegation Scope
The document defines whether the agent has the power to sign contracts, attend court hearings, authorize financial transfers, or manage bank accounts. Statutory requirements for a power of attorney dictate that any action taken outside the explicitly listed permissions does not bind the principal.
Statutory Duration
Most authorization documents include an expiration date or a condition that terminates the agency upon the completion of a specific task. If no duration is mentioned, the power of attorney remains effective until the principal issues a formal notice of revocation or the legal relationship between the parties ends. This prevents the indefinite existence of dormant authorities that could be misused by former employees or partners.
Revocation Right
The principal retains the ability to cancel the authority at any time by providing written notice to the agent and any relevant third parties. Filing a revocation of the power of attorney with the relevant regulatory bodies ensures that the agent can no longer represent the firm in official proceedings.