History

• The United Kingdom (UK) Parliament passed The Companies Act in 1985 to provide guidelines for certain business transactions. The act specifies the responsibilities of individuals within a business, such as directors and secretaries. It also includes clauses in regard to power of attorney rules for companies, since they were unclear in the Power Of Attorney Act of 1971.
  
  

Importance

• Companies that register under The Companies Act generally abide by the power of attorney provisions specified within the act. The original Power Of Attorney Act mostly addressed a person acting on behalf of another person and created some confusion about individuals acting on behalf of a corporation. The Companies Act rectified this confusion by listing power of attorney terms specifically for businesses.
  
  

Amendments

• The Parliament amended The Companies Act in 2006 to reform company law. This reform included revisions of some power of attorney provisions listed in the original act. For instance, the new act requires a company to formally declare a person acting on its behalf via a deed, a legally binding document. In contrast, under the 1985 Act, a company could verbally declare a power of attorney without including legal documentation.