Money Advances from Managers
You may possibly, from time to time, receive advances from your
management. Many personal managers go out and spend their own money for things that an artist (songwriter or producer) they
represent might need, at the time of need. This is normally a good thing. But, your manager will need
to be reimbursed for his or her expenses. So, outside of any money advances you might get from the management, you
should consider putting a limit on how much your manager can go out and spend in your behalf, without authorization
You do not want your manager going out and spending
$20,000.00 on anything in your behalf, without your knowledge of the expenditure(s) up front!
Bank Account Access
You must also limit your manager’s access to your business
account. And never give your management total “Power Of Attorney”. This is an absolute “no-no!”
Now on the other hand, you may choose to give your manager “Limited Power Of Attorney”. This basically breaks
down to meaning that you and your manager will mutually make a list of the things that he or she can sign off on - in your
behalf. It will be very important that you get in writing what your manager’s spending limit will be. Make
sure your agreement clearly states that your manager will need written approval from you for any major expenses (in your behalf).
Power of Attorney
When you give someone the authority to act on your behalf, you are granting power of attorney.
· Limited power
of attorney grants only narrow rights, like giving a friend your check-writing powers while you are on an extended vacation.
Limited power of attorney is revoked if you become mentally disabled.
· Ordinary power of attorney give broader
powers over your finances. They expire if you become mentally disabled.
· Durable power of attorney usually grant
the broadest powers of all. A durable power of attorney remains effective if you become incapacitated.