Rights to represent the company 

As a rule, a company is represented by the members of the management board but in some cases (board members are away from the location of the company, etc.) it is advisable to give the right to represent the company to somebody who is not a board member.

This right to represent the company is called “procuration”. It is a special authorisation which gives a person the right to represent the company in all transactions related to economic activities, however the procurator may transfer or encumber an immovable of the company only if the company grants this right to him in the procuration, and this is noted in the commercial register.

Procuration may only be granted to a natural person and the company may have one or several procurators. Procuration may be granted to several persons in such a manner that all or some of the procurators are only entitled to represent the company jointly (joint procuration) or in such a manner that the procurator may represent the company only jointly with a member of the management board.

A procurator shall sign such that he adds the word “prokurist” [procurator] or the abbreviation “p.p.” (per procura) to his signature.

A procurator is prohibited to transfer the procuration and the company may terminate a procuration at any time.