Are electronic signatures legally binding?

Yes. Electronic signatures are generally legally binding under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws where adopted, provided intent, consent, attribution, and reliable record retention are satisfied.

When is notarization required?

Notarization is required only when a counterparty or jurisdiction specifically demands it (for example certain bank forms or state filings). If a notary is requested, use remote online notarization where permitted and retain the notary record.

Who can sign on behalf of the company?

Only individuals expressly named and authorized in board resolutions or organizational documents should sign. The power structure should reference the resolution and specify whether signatures are joint or several for clarity.

How do I revoke an authorization?

Revocation should be documented in writing, approved per corporate governance, and communicated to affected third parties. Maintain a dated record and update internal and external copies to prevent reliance on revoked authority.

Can I use basic email authentication for signers?

Email-only authentication may be sufficient for low-risk approvals, but banks and regulators often require stronger methods (SMS, knowledge-based verification, or multi-factor) for financial authority and higher-value transactions.

How should executed copies be stored?

Store signed originals or certified digital copies in a secure, access-controlled repository. Retain according to regulatory and tax requirements and ensure records are exportable and reproducible for audits and legal proceedings.

Electronic Signature
Templates
Miscellaneous
Business Power Structure

Business Power Structure

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS POWER STRUCTURE

Company Name: Effective Date:

RECITALS

WHEREAS, the parties listed below are stakeholders in the Company identified above and desire to document the internal allocation of managerial authorities, voting rights, and signing authority necessary for the conduct of the Company's business;

WHEREAS, the parties intend that the structure and rules set forth in this Business Power Structure (the "Structure") shall govern the exercise of corporate powers, the delegation of authority to officers, and the procedures for decision-making to reduce uncertainty and protect the Company’s operations and stakeholders;

WHEREAS, the parties desire that this Structure operate in tandem with any governing organizational documents, and shall supersede any informal or prior arrangements among the parties to the extent they conflict with the terms hereof.

PARTIES

Stakeholder A Stakeholder B

SCOPE OF WORK

The parties agree that the operational responsibilities and authorities assigned under this Structure shall include the following areas. The parties will perform, supervise, or delegate duties consistent with the allocations described below.

AUTHORITY, VOTING, AND SIGNING

Ownership Percentage — Stakeholder A: %; Stakeholder B: %

Decision Threshold for Major Corporate Actions (e.g., merger, sale of substantially all assets, amendment of organizational documents): % of voting interests required

Designated officer signing authority: The following officers are authorized to bind the Company in ordinary course transactions up to the dollar limits specified. Transactions exceeding the specified limits require approval consistent with the Decision Threshold above.

Officer 1 — Title Officer 1 — Name Officer 1 — Single-transaction signing limit Officer 2 — Title Officer 2 — Name Officer 2 — Single-transaction signing limit

CAPITAL CONTRIBUTIONS AND TRANSFERS

All capital contributions, distributions, and transfers of ownership interests shall be documented in writing and require compliance with the Company's transfer restrictions. The parties agree that no transfer of a controlling interest shall occur without satisfaction of the Decision Threshold and any preemptive offers to existing stakeholders.

Initial Capital Contribution — Stakeholder A Initial Capital Contribution — Stakeholder B

PAYMENT TERMS

For services, fees, or reimbursements arising from actions under this Structure, the parties agree to the following payment terms:

Payment Amount Payment Schedule Late Fee and Interest

TERM AND TERMINATION

This Structure shall commence on the date set forth as the Effective Date and shall remain in effect until terminated as provided below.

Term Start Date Term End Date (if applicable) Notice Period for Termination

Either party may terminate this Structure upon written notice to the other party, subject to the Notice Period above, for material breach that remains uncured after any applicable cure period, insolvency, or by mutual written agreement of the parties.

CONFIDENTIALITY

Each party shall hold in strict confidence and shall not disclose to any third party any Confidential Information received from the other party except as required by law or as necessary to exercise rights or perform obligations under this Structure. "Confidential Information" includes, without limitation, financial data, business plans, proprietary processes, customer lists, and trade secrets. Confidential Information does not include information that is or becomes publicly available through no breach of this Structure or was independently developed without use of the disclosing party’s Confidential Information.

Upon termination of this Structure, each party shall return or destroy Confidential Information of the other party and certify in writing the disposition of such materials upon request.

GOVERNING LAW; DISPUTE RESOLUTION

This Structure shall be governed by and construed in accordance with the laws of the state of without regard to its conflict of laws principles.

The parties shall first attempt in good faith to resolve any dispute arising out of or relating to this Structure by negotiation between authorized representatives. If the dispute is not resolved by negotiation within thirty (30) days, the parties agree to submit the dispute to mediation before initiating litigation. Nothing in this paragraph shall prevent either party from seeking injunctive or equitable relief where necessary to prevent irreparable harm.

MISCELLANEOUS

Entire Agreement: This Structure, together with any exhibits or written agreements expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties.

Amendment: This Structure may be amended only by a written instrument signed by all parties.

Severability: If any provision of this Structure is held to be illegal, invalid or unenforceable, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith to replace the invalid provision with a valid provision that most closely approximates the parties’ intent.

Waiver: The failure of any party to enforce any provision of this Structure shall not be construed as a waiver of that provision or any other provision.

Party A — Authorized Representative:

By:

Date:

Party B — Authorized Representative:

By:

Date:

What the Business Power Structure Is and when it's used

A Business Power Structure is a formal record that documents which officers, managers, or named agents are authorized to act on behalf of a business for specific functions such as signing contracts, opening bank accounts, or executing financial transactions. Organizations use it to set monetary limits, designate signing order, and record any delegation or revocation of authority. When completed and shared with third parties, the document reduces ambiguity about who may bind the company, supports vendor and banking onboarding, and helps auditors and counsel verify consistent corporate governance practices.

Why a clear power structure matters for your business

A documented power structure reduces transactional friction, prevents unauthorized commitments, and creates an auditable trail of delegated authority. Clear authority limits lower operational risk and help vendors, banks, and regulators accept signatures without extended verification.

Who typically prepares and relies on a Business Power Structure

Organizations and intermediaries use this document to confirm who may sign, approve, or execute defined business activities on behalf of the legal entity.

Corporate leadership teams and company secretaries who record board resolutions and formal delegations of authority for internal control.
Banking and treasury departments that require verified signing authority for account openings, wire transfers, and signature card updates.
Vendors, lessors, and contracting partners that require an explicit signatory list before executing agreements or accepting invoices.

Parties that receive a completed power structure use it to accept signatures, set up accounts, and enforce spending controls without repeated identity checks.

Core elements included in a professional Business Power Structure

A complete power structure combines identity details, role descriptions, signature specimens, dollar thresholds, effective dates, and revocation terms so recipients can validate authority quickly and consistently.

Authorized Parties

Lists names and legal roles of officers or agents authorized to sign, including corporate titles and whether they act jointly or severally.

Signature Blocks

Provides a clear signature block for each authorized person and an example signature specimen to help third parties compare submitted signatures.

Monetary Limits

Specifies per-person and aggregate transaction thresholds, approval hierarchies, and any exceptions for recurring payments or vendor-specific approvals.

Delegation Matrix

Describes temporary delegations, delegable duties, and required approvals when authority is reassigned or granted to contract managers.

Effective Dates

Records the effective and expiration dates for each authorization and links those dates to board resolutions or meeting minutes when applicable.

Revocation Procedure

Explains how to revoke authority, who must approve revocation, notification requirements to third parties, and how revocations are recorded.

Step-by-step: completing and issuing the Business Power Structure

Follow a consistent review and approval workflow, attach supporting board minutes when needed, and distribute copies to key partners and custodians.

01

Prepare draft: Gather board minutes and officer identities for accuracy before drafting.
02

Board approval: Record a resolution authorizing the listed signatories and their limits.
03

Collect signatures: Have authorized officers sign and date the document, notarize if requested.
04

Distribute copies: Provide certified copies to banks, vendors, and internal records custodians.

Configuring an electronic workflow for this document

Set up a digital workflow that enforces signer order, required authentication, and audit logging to mirror the approved governance process.

Field	Configuration
Signing Order	Define sequential or parallel signer flows with mandatory steps.
Authentication	Use email plus SMS or KBA for higher-assurance signers where needed.
Conditional Fields	Show or hide monetary-limit fields based on role or selection.
Audit Trail	Capture timestamps, IPs, and signer actions for each signature event.

Where to send completed Business Power Structure documents

Different recipients require slightly different formats and supporting evidence; choose the appropriate delivery channel based on the recipient's verification requirements.

Bank Account Setup: Provide certified copy plus board resolution when opening or updating accounts.
Vendor Onboarding: Attach the document to vendor profile and include payment authorization fields.
Internal Records: Store a signed copy with the corporate minute book and access-controlled records.
Regulatory Filings: Submit only when statute or regulator specifically requires a signed authorization.

Digital delivery and format considerations

Choose standard, non-editable formats for recipient acceptance and use a platform that preserves an audit trail and signature evidence.

File Formats: PDF or PDF/A preferred for immutable signed copies.
Integrations: Connect to Salesforce, NetSuite, Google Workspace, or Box for storage.
Authentication: Support email, SMS codes, and optional two-factor methods.

Typical timing and review expectations

Keep timelines reasonable: update the document when leadership changes, and expect counterparties to request certified copies before accepting new signatories.

Initial Submission Timing:

Provide on account opening or contract execution request.

Update After Leadership Changes:

Update records immediately after officer appointment or resignation.

Counterparty Verification Time:

Banks may require up to several business days for verification.

Annual Review:

Review the power structure at least once per fiscal year.

Record Retention Action:

Archive superseded versions according to retention policy.

Common mistakes that slow acceptance or create risk

Using nicknames, abbreviations, or inconsistent entity names that mismatch formation documents and cause banks to reject the submission.
Failing to document board approval or minutes that authorize the signers, which leads counterparties to request additional verification.
Not specifying monetary thresholds or joint-signing rules clearly, producing confusion over whether signatures are valid for large transactions.
Keeping outdated signed copies in circulation after revocation, which increases fraud risk and creates reconciliation problems during audits.

Consequences of an incorrect or incomplete power structure

Bank Rejection: Delayed transactions

Contract Invalidity: Counterparty may refuse to recognize signature

Operational Delay: Payments and authorizations held

Legal Liability: Company exposed to claims

Regulatory Risk: Possible fines or supervisory action

Audit Findings: Control weaknesses cited

Security and compliance basics to document and preserve

Transport Encryption: TLS 1.2/1.3 in transit

Data at Rest: AES-256 encryption at rest

Audit Standards: SOC 2 Type II available

International Standard: ISO 27001 certified

Health Data: HIPAA compliance with BAA

Legal Frameworks: ESIGN and UETA compliance

Real-world examples of Business Power Structure use

Two brief case examples illustrate common use and operational impact when power structures are clear and current.

Optica Ventures (Brian Fitzgibbons)

Optica centralized signing authority across portfolio companies to reduce closing delays.

The interface simplified counterparty acceptance.
As a result, treasury and external partners processed agreements faster and with fewer identity questions, improving turnaround without increasing legal review cycles.

Martin Properties (Tim Martin)

Martin Properties used a formal signatory list for property management and escrow disbursements.

It enabled mobile execution by authorized agents.
The firm reported that having explicit, signed authority reduced in-person notarization needs and streamlined lease and vendor payment workflows.

Comparing eSignature vendors for executing a Business Power Structure

Basic capability needs for this document are legally binding e-signatures, audit trails, bulk distribution for many recipients, and HIPAA or industry-specific compliance where required.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 env/user/yr	Varies	Varies	Varies

Frequently asked questions about Business Power Structure completion and validity

Answers to common questions covering legal validity, signature acceptance, notarization, revocation, and electronic submission practices.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Electronic signatures are generally legally binding under the federal ESIGN Act (15 U.S.C. §7001) and state UETA laws where adopted, provided intent, consent, attribution, and reliable record retention are satisfied.
When is notarization required?
Notarization is required only when a counterparty or jurisdiction specifically demands it (for example certain bank forms or state filings). If a notary is requested, use remote online notarization where permitted and retain the notary record.
Who can sign on behalf of the company?
Only individuals expressly named and authorized in board resolutions or organizational documents should sign. The power structure should reference the resolution and specify whether signatures are joint or several for clarity.
How do I revoke an authorization?
Revocation should be documented in writing, approved per corporate governance, and communicated to affected third parties. Maintain a dated record and update internal and external copies to prevent reliance on revoked authority.
Can I use basic email authentication for signers?
Email-only authentication may be sufficient for low-risk approvals, but banks and regulators often require stronger methods (SMS, knowledge-based verification, or multi-factor) for financial authority and higher-value transactions.
How should executed copies be stored?
Store signed originals or certified digital copies in a secure, access-controlled repository. Retain according to regulatory and tax requirements and ensure records are exportable and reproducible for audits and legal proceedings.

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