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What is an authorized representative?
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In this article, I will break down the meaning of Authorized Representative so you know all there is to know about it!
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What Is A Authorized Representative
In business, an authorized representative is a person or entity that is authorized by another person or entity to act on its behalf.
The most common example of an authorized representative is a person acting on behalf of a company.
For instance, if a company CEO or President signs a document on behalf of the company, that person is the authorized representative of the company.
Although companies appoint authorized representatives regularly, an individual can be represented by someone.
For example, in the context of filing an application, an applicant can authorize a person to act on his or her behalf in all matters concerning the application.
Why Are Authorized Representatives Important
An authorized representative is someone you choose and trust to represent you in some way.
Appointing an authorized representative is important as you may not have the ability to attend a meeting to sign documents physically, or you do not have the proper knowledge or competence to deal with the subject matter.
By appointing an authorized representative, you can have someone act on your behalf even in your absence.
Also, having an authorized representative that is knowledgeable in dealing with the subject matter for which he or she was appointed can be valuable to you.
For example, if a person is very familiar with an application process, you can appoint that person as an authorized representative who can handle the process with you.
Otherwise, you will have to deal with the application yourself, may make mistakes, or spend a lot of time figuring things out.
Who Can Be An Authorized Representative
An authorized representative can be anyone of your choosing.
If you’re an individual appointing an authorized representative to handle an application for you, it can be a family member, a friend, or a person that you trust.
Corporations typically appoint their directors and corporate officers as authorized representatives.
In addition to that, a company employee can also be specifically authorized by the corporation to handle a specific matter, provided the corporation’s board approves such an appointment.
An authorized representative can also be a professional.
For example, lawyers, accountants, engineers, or other professionals can act as authorized representatives to handle a specific mandate.
When you’re appointing a professional, you’ll need to consider the professional fees applicable to the mandate.
However, friends and family will generally not charge you to act on your behalf to the extent they have the right to do so.
How To Appoint An Authorized Representative
Depending on the context, the process to appoint an authorized representative can vary.
When dealing with the government or government agencies, you can typically appoint an authorized representative by completing a form specifically designed for such appointment.
For example, the State of California Health and Human Service Agency has an Appoint of Authorized Representative form that a person can complete to appoint someone.
Another way you can appoint an authorized representative is to draft an authorization letter.
In essence, in the authorization letter, you’ll indicate who you are authorizing to act for you, in what capacity, for what purpose, and so on.
Corporations and legal entities can appoint an authorized representative in writing as well.
Generally, the company’s board of directors or person having sufficient authority within the company will sign an authorization resolution where the company appoints a person for a specific purpose.
The corporate resolution can also grant a person general powers of representation as well.
How To Withdraw An Authorized Representative Appointment
In most cases, you can withdraw the appointment of an authorized representative by providing that person with a written document that you are ending the mandate.
If the person was appointed to handle an application for you with a third party or act on your behalf with a third party, it’s important that you notify the third party of the appointment withdrawal as well.
If you are withdrawing someone’s appointment and appointing someone else instead, you can generally handle both simultaneously.
In the same letter where you remove a person’s authority, you can name the new person you authorize to act on your behalf.
When you’re dealing with governments and government agencies, they are now slowly progressing to offering online services where you can appoint someone on their portal or withdraw an appointment.
Authorized Representative Examples
Let’s look at a few examples of when a person acts as an authorized representative of another.
The Minnesota Department of Human Services allows a client to authorize a representative to act on the applicant’s behalf regarding applications for assistance or participation in the program.
HealthCare.gov allows you to appoint an authorized representative, like a family member or a trusted person, to legally act on your behalf.
A corporation names its Chief Financial Officer as an authorized representative to sign a commercial contract
A partnership appoints a partner to act on behalf of the partnership for a bank loan.
So there you have it folks!
What is authorized representative?
In a nutshell, an authorized representative is a person you choose to act on your behalf.
The authorized representative can be given specific authority to act on your behalf or a more general authority to act.
An authorized representative can be a family member, friend, a person you trust, or even a professional having expertise of some kind.
Knowing when to appoint a representative, defining the scope of the representation, and being able to terminate the mandate are important.
If you’re not sure how to deal with such matters, you should consult an attorney or professional.
Now that you know what an authorized representative is and how it works, good luck with your research!
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