Selling Shares With Power Of Attorney (POA)

You’re ready to sell your shares but need a helping hand. With Power of Attorney, you can authorise someone else to manage the sale for you. It’s a common, secure practice and we’re here to guide you through it.

How to Sell Shares with Power of Attorney

If you’ve been granted Power of Attorney and need to sell shares on someone else’s behalf, here’s the step-by-step process you’ll need to follow.

1. Complete our online share sale form. This is where you’ll provide details about the type of sale and the shares you’re selling.
2. Complete an online ID check. This ensures that you’re who you say you are.
3. After that, you’ll need to send in the required documents:
   1. These include the attorney's ID
   2. A signed Power of Attorney document
   3. The shareholder’s ID

You’ll need to get these documents certified by an official. The accepted certification comes from one of the following:

• Justice of the Peace
• Commissioner of Oaths
• Solicitor
• Police Officer from the State you reside in (needs to include their Badge Number)

Introduction to Power of Attorney in Australia

Understanding the specifics of Power of Attorney (POA) in Australia is important for you if you’re looking to sell shares via this method.

In Australia, a POA is a legal document that grants authority to another person, known as the attorney, to make decisions on someone else's behalf. This can be useful if the person is incapacitated, overseas or simply wants to appoint someone else to handle their affairs.

This authority can be ‘general power of attorney’ or ‘enduring power of attorney', with the latter remaining valid even if you lose capacity. You must trust your chosen attorney, as they’ll have considerable control over your assets.

Remember, the attorney’s actions must always reflect your best interests. It's also possible to have more than one attorney who can make decisions jointly.
Selling shares using POA requires submitting necessary legal documentation to your online broker.

Advantages Of Using POA

Leveraging the power of attorney for selling shares has several benefits. It allows you, as the chosen agent, to manage the transactions seamlessly without the need for constant communication with the broker. This POA offers flexibility, enabling you to react swiftly to market trends, maximising selling price and profits.

Also, if you’re managing shares for someone unable to do so, the POA ensures continuity in handling all financial matters of the portfolio. It’s also an effective tool when the shareholder is unavailable due to travel or illness. In such cases, you can act promptly, mitigating potential financial loss.

Lastly, using a POA reduces the administrative burden and simplifies the selling process. It’s a practical, efficient solution for managing share sales, particularly in complex or time-sensitive situations.

Selecting Your POA Agent

When you’re picking out your POA agent for share sales, it’s crucial to put your trust in someone reliable, experienced, and understands your financial goals. This individual will have the authority to make decisions that directly impact your financial future. It’s not a decision to take lightly.

Analyse their understanding of the stock market, their foresight in unpredictable situations, and their track record in decision-making. Also, consider their moral character. Remember, they’re going to represent you and your interests.

You should also ensure they’re able to commit the time required for this role. While it’s not a full-time job, it does need regular attention.

Risks And Precautions Of POA

As you consider using a Power of Attorney to sell shares, it’s crucial to be aware of the potential risks and necessary precautions.

A significant risk is the potential for misuse of power. If the agent you’ve chosen doesn’t act in your best interest, they could sell your shares at an unfavourable time or price. Therefore, it’s vital to select a trustworthy individual and clearly define their powers in the POA document.

The document should be reviewed and updated regularly. You should also keep in mind that the POA becomes void upon your death or incapacitation, which could impact ongoing transactions and financial affairs.

To mitigate these risks, it’s advisable to consult with a legal professional before signing a POA.

Additional Financial Uses For POA

In addition to selling shares, you can also use a Power of Attorney to carry out a variety of other services and other financial transactions.

For instance, you’re able to manage bank accounts, making deposits or withdrawals as needed. You can also use it to pay bills, ensuring that your financial obligations are met on time.

If you’re investing, a POA can make investment decisions on your behalf, allowing you to maintain an active portfolio even when you’re unavailable. POA can also be used to handle real estate transactions, whether buying or selling property. Even tasks like filing taxes can be delegated.

It’s essential, to trust the individual you’re granting this power to, and to clearly define their scope of authority.

Frequently Asked Questions

What Happens If The Power Of Attorney (POA) Holder Misuses Their Authority To Sell Shares?

If your POA holder misuses their powers of attorney authority to sell shares, it’s a serious breach of trust. You’d have grounds for legal action for any financial loss and could revoke their power of attorney immediately.

Can The POA Holder Sell Shares Without Informing The Actual Shareholder?

Yes, a POA holder can technically sell shares without informing you, the actual shareholder. However, they’re legally required to act in your best interest, breaches can lead to legal consequences. Always select a trustworthy POA.

What Are The Legal Implications If The POA Document Is Not Correctly Notarized?

If your POA document isn’t correctly notarized, it’s not legally binding. You could face issues in financial transactions, like selling shares. It’s crucial to ensure proper notarization to avoid potential legal complications.

Can A POA Holder Sell Shares Even If The Shareholder Is Incapacitated?

Yes, you can sell shares as the POA holder even if the shareholder is incapacitated. Your authority under POA includes making financial decisions, like selling shares, when the shareholder is unable to do so.

What Is The Process To Revoke Power Of Attorney For Selling Shares?

To revoke a Power of Attorney for selling shares, you’ll need to issue a written and signed revocation notice. Ensure it’s delivered to the POA holder and any institutions they’ve interacted with on your behalf.