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Corporate agents are entities that are empowered to function as agents for various types of businesses or for a government agency. In most cases, the corporate agent is a trust company that has received specifically assigned rights and privileges from the corporation or government entity. Among the several functions that may be assigned to a corporate agent is the ability to handle banking and financial matters on behalf of the client.
The use of a corporate agent is often a matter of convenience. By making use of trust companies to handle a number of routine functions such as general banking tasks, the corporation or government entity does not have to make use of internal resources to efficiently manage those tasks. This means that available resources in terms of personnel and time can be effectively diverted to other matters, making it possible to complete other projects in a shorter period of time.
Cost may also be a factor in determining to make use of a corporate agent. By outsourcing various functions such as banking services to the agent, it is possible for the corporate to keep staffing at both executive and administrative levels focused on other areas of operation. Depending on the nature of the business of the company, this outsourcing can lead to a significant amount of savings to the bottom line.
Defining the exact duties of a corporate agent is difficult, since the responsibilities may vary from one situation to another. Along with managing banking services, the agent may also assume other duties at the request of the client. Typically, the range of responsibilities is defined in the terms and conditions of the contract that is established between the corporate agent and the client.
Rarely does the corporate agent receive total carte blanche in the execution of the assigned duties. There are normally a few basic checks and balances put in place that make it possible to always be aware of what is and is not occurring within the scope of those assigned responsibilities. Often, a corporate agent will provide regular status reports to the client.