Derivative power refers to the capacity to perform an action granted by someone else. For instance, if your mother authorizes you to make choices regarding dinner, you possess derivative power. This type of power solely exists due to the permission bestowed upon you by another individual. It distinguishes itself from other forms of power, such as physical prowess or holding a leadership position within your community.
Derivative power refers to the capacity to take action or refrain from taking action based on a given authorization. This authority is only obtained through a grant, such as when an agent receives authority from a principal or a head of state is granted power by a constitution. It is a power that is derived from another source, rather than being inherent or self-generated. For instance, an agent possesses derivative power from a principal to act on their behalf in matters related to the agency. Similarly, a head of state has derivative power from a constitution to modify legal relationships, either their own or those of others. These examples demonstrate how derivative power is bestowed from one source to another, rather than being inherent or self-generated.
Derivative power refers to the authority granted to a person or entity to act on behalf of another, typically in a fiduciary capacity. It allows the individual or organisation to make decisions and take actions that are in the best interest of the principal.
Derivative power can be exercised by individuals such as trustees, attorneys-in-fact, or guardians, who have been legally appointed to act on behalf of another person. It can also be granted to corporate entities, such as boards of directors, to make decisions on behalf of the shareholders.
Examples of derivative power include a trustee managing a trust’s assets, an attorney-in-fact making financial decisions for a person under a power of attorney, or a board of directors making decisions on behalf of a corporation’s shareholders.
Derivative power is typically granted through legal documents such as a power of attorney, trust agreement, or corporate bylaws. These documents outline the scope of authority and the specific duties and responsibilities of the person or entity exercising derivative power.
Yes, derivative power can be revoked by the principal or through a court order. The principal may choose to revoke the power of attorney, terminate a trust, or remove a trustee or director. In some cases, a court may intervene if it determines that the person exercising derivative power is not acting in the best interest of the principal.
The person exercising derivative power has a fiduciary duty to act in the best interest of the principal. This includes managing assets prudently, avoiding conflicts of interest, and making decisions that align with the principal’s wishes and objectives.
In some cases, derivative power can be transferred to another person through legal mechanisms such as assigning a power of attorney to a new attorney-in-fact or appointing a new trustee. However, the transfer of derivative power must comply with the requirements set forth in the relevant legal documents and applicable laws.
If someone abuses derivative power by acting outside the scope of their authority or in a manner that harms the principal’s interests, legal remedies may be available. The principal or other interested parties can seek court intervention to remove the person from their position, recover damages, or pursue other appropriate remedies.
Yes, derivative power can be limited or restricted through the terms of the legal documents granting such power. For example, a power of attorney may specify certain actions that the attorney-in-fact cannot take, or a trust agreement may outline specific investment restrictions for the trustee.
Yes, there are legal requirements that must be followed when exercising derivative power. These requirements may vary depending on the jurisdiction and the specific type of derivative power being exercised. It is important to consult with an attorney to ensure compliance with all applicable laws and regulations.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/derivative-power/
- Modern Language Association (MLA):Derivative Power. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/derivative-power/.
- Chicago Manual of Style (CMS):Derivative Power. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/derivative-power/ (accessed: May 09 2024).
- American Psychological Association (APA):Derivative Power. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/derivative-power/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts