Power of attorney and powers of attorney

Every entrepreneur is faced with the need to give his employees powers of attorney for legal transactions and legal acts. The power of attorney is regulated in the Commercial Code (§ 48 ff. HGB). She admits that Authorized signatories very far-reaching powers of attorney. In addition to the power of attorney, employees can be granted general power of attorney, type power of attorney and individual power of attorney.


The procuration authorizes all judicial and extrajudicial transactions and legal acts business of a commercial activity (§ 49 HGB). It must not be restricted to the outside world. It can be granted as individual power of attorney, joint power of attorney (only two or more authorized officers may act together) or branch power of attorney (limited to the transactions of a branch).

The authorized signatory (s) sign (s) in business dealings with the addition ppa. (= Per procura). Power of attorney can only be granted by the owner of the trade. It must be registered for entry in the commercial register. The authorized representative may not carry out the following transactions:

  • Signing the balance sheet / tax return
  • Closure of operations
  • Bankruptcy petition
  • Sale and encumbrance of land

Power of attorney

The power of attorney can be given informally and limited as required. It extends to all activities that arise in day-to-day business transactions.

  • General power of attorney relates to all normal activities of a commercial trade (e.g. purchasing, selling, hiring and firing employees, etc.).
  • Type of power of attorney relates to a specific type of business (e.g. sale of goods, purchase of certain goods).
  • Special or individual power of attorney relates to a single transaction (e.g. purchasing a copier, paying a specific invoice).
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