Legal Definitions - derivative power

Derivative power refers to authority or ability to act that is not inherent but rather originates from, or is granted by, another primary source of power. This means the power is secondary, dependent on, and limited by the scope of the original authority from which it stems.

Here are some examples illustrating derivative power:

• Example 1: Corporate Management

  A large corporation's Board of Directors creates a new division and appoints a Vice President to oversee its operations. The Board grants this Vice President the authority to hire staff, approve budgets up to a certain amount, and make strategic decisions for their division.

  The Vice President's ability to manage the division, hire employees, and approve spending is a derivative power. It originates from the Board of Directors, which holds the primary power granted by the company's shareholders and corporate charter. The Vice President cannot exceed the authority delegated by the Board and must operate within the established corporate policies.

• Example 2: Government Agencies

  A city council passes an ordinance establishing a local planning commission and defines its responsibilities, such as reviewing zoning applications and making recommendations on urban development projects.

  The planning commission's authority to review applications, hold public hearings, and advise the city council on land use matters is a derivative power. This authority is not inherent to the commission itself but is granted to it by the city council through specific legislation. The commission's actions must remain within the boundaries set by that ordinance and cannot, for instance, unilaterally change zoning laws without the council's approval.

• Example 3: Legal Representation

  An individual involved in a lawsuit hires an attorney to represent them in court. The individual signs an agreement authorizing the attorney to file motions, present arguments, and negotiate settlements on their behalf.

  The attorney's ability to act on behalf of the client in legal proceedings is a derivative power. This authority is directly derived from the client's decision to hire them and the terms of their legal agreement. The attorney's actions are strictly limited to what is specified and permitted within that agreement and the rules of professional conduct; they cannot, for example, settle the case without the client's explicit consent.