Is it possible to issue powers of attorney online during martial law?

With the outbreak of a full-scale war, Ukrainians abroad often need to issue powers of attorney and instruct other persons to dispose of cars, real estate, and represent their interests in courts or banking institutions. Is it possible to issue powers of attorney online during martial law? Find out in this article.

What is power of attorney?

According to Art. 244 of the Civil Code of Ukraine (CCU), power of attorney is a written document issued by one person to another person for representation before third parties.

Art. 247 of the CCU provides that the term of the power of attorney is set forth in the power of attorney itself. If no term is specified, the power of attorney remains in force until its termination.

The law imposes the following requirements on a power of attorney:

• must be executed in writing (part 3 of Art. 244 of the CCU);
• must contain the date of execution (part 3 of Art. 247 of the CCU);
• must be signed by the principal (Procedure for Performing Notarial Acts by Notaries of Ukraine, approved by Order of the Ministry of Justice of Ukraine No. 296/5 of 22.02.2012).

What are the types of powers of attorney

In legal practice, there are several types of powers of attorney used for different purposes. Let’s take a closer look at the main types.

📝 One-time power of attorney

The simplest form of power of attorney. It is used to perform a single legal action and then loses its validity.

Companies use one-time powers of attorney in the following cases:

1. Signing a contract with a specific counterparty.
   A sales manager goes to a meeting with a client to conclude a deal. He receives a one-time power of attorney to sign this particular contract with a specific counterparty. This ensures that he will not enter into any other agreements on behalf of the company.
2. Receiving a certain consignment of goods.
   The forwarder or warehouse manager receives a power of attorney to receive a consignment of goods under a specific invoice. The power of attorney clearly indicates the list, quantity of goods and details of the document on the basis of which the shipment takes place.
3. Submission of documents to a government agency.
   The company’s lawyer receives a one-time power of attorney to submit a specific set of documents to the relevant state authority.

Features of a one-time power of attorney:

• the document specifies the exact date, volume, place and name of the goods.
• does not require notarization.
• is most often used within the company.

🏛️ Special power of attorney

Gives the representative the right to perform homogeneous legal actions within a certain period. Most often, it is issued to employees whose job duties involve regular performance of the same type of functions. For example:

1. Representation in courts.
   A lawyer is issued a special power of attorney to represent the company’s interests in all courts (commercial, administrative, general). This allows him to file lawsuits, familiarize himself with case files, and participate in hearings without obtaining a separate permit for each action.
2. Regular receipt of consignments of goods.
   If the company has a regular supplier, a special power of attorney can be issued to the forwarder or supply manager to receive goods from this supplier throughout the year.
3. Interaction with the bank.
   An accountant can obtain a special power of attorney to sign primary documents or submit documents to the State Tax Service of Ukraine.

Features of a special power of attorney:

• has a specified validity period (usually up to 1 year);
• is most often used in the supply and accounting departments of companies.

🧑‍⚖️ General power of attorney

Entitles the representative to perform a wide range of legal actions on behalf of the company. Ukrainian law does not explicitly define the term «general power of attorney», but in practice it is understood to mean a power of attorney with the broadest possible list of powers.

In companies, a general power of attorney is used for the following purposes:

1. Management of a company division.
   A general power of attorney is issued to the head of a branch or separate subdivision. On its basis, he or she represents the interests of the branch or separate subdivision to third parties: concludes contracts (leases, supplies, services), hires and dismisses employees, opens bank accounts, and represents the interests of the parent company at the local level.
2. Temporary acting director.
   During the CEO’s long-term absence (for example, due to a business trip, vacation, or illness), his or her powers may be delegated to a deputy or financial director on the basis of a general power of attorney.
3. Management of corporate rights.
   A business owner may issue a general power of attorney to an attorney-in-fact (e.g., a lawyer) to manage his or her share in the company’s authorized capital. This includes the right to participate in general meetings, vote on all agenda items, and exercise other shareholder rights.

Features of the general power of attorney:

• gives the attorney a wide range of powers: management and disposal of property, conclusion of any agreements, representation in all bodies and institutions without exception;
• is usually issued to persons holding key management positions in the company;
• incorrect execution or use of the general power of attorney may result in significant financial and legal losses for the company.

How to execute a power of attorney

According to Art. 245 of the CCU, the form of a power of attorney must comply with the form in which the transaction is required by law. This means that if the law requires notarization of a transaction, the power of attorney to execute it must also be notarized.

Ukrainian law provides for different ways to execute a power of attorney depending on its purpose and legal requirements.

1. Notarization.
   This form is mandatory for transactions that require a notarized form by law. The principal must apply to a notary in person, providing his or her passport and taxpayer registration number. The text of the power of attorney must clearly define the list of powers delegated to the representative.
2. Certification by authorized persons.
   Art. 245 of the CCU defines the range of officials whose powers of attorney are equivalent in legal force to those certified by a notary.
3. A power of attorney from a legal entity.
   Such a document is issued under the signature of the director or other person authorized to do so by the company’s constituent documents and is sealed (if any).

What has changed with the introduction of martial law

Due to martial law, many Ukrainians living abroad face the need to handle their affairs in Ukraine. To do this, they can issue a power of attorney so that an authorized person can manage their bank account, receive documents, etc. on their behalf.

There are two ways to issue a power of attorney abroad:

• At a Ukrainian consulate. To do this, you need to make an appointment in advance. This can be done online on the e-Consul portal. You need to prepare a draft power of attorney in electronic form in advance. On the day of certification, it will need to be sent to the email address provided by the consular officer.
• At a local notary. In this case, you should take into account the cost of services and the subsequent need to legalize the document (apostille) for it to be valid in Ukraine.

Is it possible to issue a power of attorney online: what does the law say

During martial law, it is often necessary to issue a power of attorney online — in particular, for internally displaced persons, military personnel, etc.

Currently, Ukrainian law does not define a mechanism for notarizing a power of attorney online. In particular, the current version of the Law of Ukraine «On Notaries» contains restrictions on the notarization of powers of attorney online. It establishes the rules for notarial acts, including the notarization of a power of attorney. Namely:

• notarial acts are performed at the notary’s workplace (except when a person cannot appear before the notary on their own, for example, due to a serious illness, serving a sentence, etc. — in this case, the notary visits the person);
• notarial acts are performed only in the presence of their participants or their authorized representatives;
• notarial acts are performed after the person who applied for them has been identified;
• notarial acts are performed after the notary checks whether a particular person can apply for a notarial act (for example, a 14-year-old person, even if he/she has a passport of a citizen of Ukraine, is not entitled to sell an apartment owned by
• him/her) and whether he/she is aware of the significance of his/her actions;
  notarial acts are registered in the Register of Notarial Acts with the personal signature of the person who applied for such an act.

However, during the period of martial law, the state created additional opportunities for issuing powers of attorney online. In particular, legal entities can issue powers of attorney in the Unified Judicial Information and Communication System (UJICS) to give lawyers the right to perform procedural actions in an electronic court.

To issue an electronic power of attorney in the UJITS, the principal must:

• log in to the electronic cabinet and go to the «Powers of Attorney» section;
• click the «Create a power of attorney» button;
• specify the representative’s taxpayer registration number (which must also be registered in the system);
• select the scope of powers: only reviewing the case, editing documents, or the full right to file applications and documents with the court.

The principal signs the generated electronic document with his or her qualified electronic signature (QES), and the power of attorney becomes active in the representative’s office.

The state is also taking steps to digitalize notaries. On December 30, 2023, Resolution No. 1406 of the Cabinet of Ministers of Ukraine came into force. It introduced the Unified State Electronic Notary System, which aims to combine key registers:

• electronic archive;
• register of notarial acts;
• inheritance register;
• register of powers of attorney and notaries;
• register of special forms.

The e-notary system will make it possible to perform notarial acts online. In particular, notaries will be able to create notarized documents (including powers of attorney) with a QR code that will allow them to uniquely identify the notarized document in the registers.
The notarization procedure will take place in a real-time video conference format. This will allow notaries to identify the parties to a notarial act.

The electronic notary system expands opportunities for companies that issue powers of attorney to support their business processes. Attorneys-in-fact will be able to receive not only a traditional paper power of attorney form, but also its electronic counterpart certified by a notary’s electronic signature.

Using digital services (such as Vchasno.EDO), you can sign a power of attorney from a legal entity and authorize an employee to enter into contracts or perform other legal actions. The Vchasno.EDO archive stores both the electronic power of attorney and the contracts or other documents signed under it.

The Vchasno.EDO service allows you to instantly send documents to proxies. This way, companies can quickly solve business problems in different regions of the country without the need to send paper originals.

By working with electronic powers of attorney in Vchasno.EDO, a company’s lawyer can better control the correctness of the form, the validity period, etc. If the company issues a large number of powers of attorney, the required document can be found in the electronic archive in a few seconds.

Vchasno services solve any tasks related to electronic document management. To work with electronic powers of attorney, employees can use Vchasno.QES to issue an electronic signature, and send and store the documents themselves in Vchasno.EDO. The Vchasno ecosystem of services helps companies adapt to modern conditions and run their business efficiently, regardless of industry.