Powers may be restricted Clause Samples

The "Powers may be Restricted" clause defines the ability to limit or qualify the authority granted to a party, such as directors or officers, within an agreement or governing document. In practice, this clause allows the parties to specify certain actions that cannot be taken without additional approval, or to set boundaries on decision-making powers—such as requiring shareholder consent for major transactions or restricting the ability to incur debt above a certain threshold. Its core function is to provide control and oversight, ensuring that key powers are exercised only within agreed limits and thereby reducing the risk of unilateral or unauthorized actions.