What is power of Attorney?

A Power of Attorney is a legal instrument that is used to delegate authority to another person to act on his behalf and in his name.
The person, who signs (executes) a Power of Attorney, is called the Principal. The power of Attorney gives authority to another person (called an Agent or constituted attorney) to do specified acts or in general, on behalf of the principal in matters, like property, financial or other legal matters.
Any action by the Attorney will bind the Principal as if such act were done by the Principal himself.
Power of Attorney must be on the stamp paper of appropriate value. In general it is Rs.100 non-judicial stamp paper.
Registration of a power of attorney is not compulsory but if it relates to immovable property then it requires registration.
Though there is no provision of law by which a power-of-attorney becomes compulsorily register able, a court is not bound to presume its genuineness unless it is registered. It is advisable to notarize the Power of Attorney.
A power of attorney can be cancelled by the principal any time. However, cancellation of power of attorney will not absolve the principal of any actions taken by the Attorney prior to such termination.
In case of Companies, Power of Attorney can only be given under the authority of Board of Directors.