What is a proxy in an Estonian company?
A power of attorney is a special type of power of attorney that gives a person (proxy) the right to perform activities related to the operation of a business. It is extremely popular in Poland. It is worth taking a look at what rules it operates under in companies under Estonian law.
Powers of a proxy in a company in Estonia
As a rule, the company is represented by the Board of Directors according to the representation indicated in the Articles of Incorporation. However, a proxy consists in delegating the right of representation to a person who is not part of the Board of Directors. A proxy is authorized to perform judicial and extrajudicial acts related to the operation of the company. Under Estonian law, an exemption applies to real estate – a special power of attorney, which must be disclosed in the commercial register, is needed to sell or pledge it.
It should be remembered that a power of attorney can only be granted to an individual, who does not have the right to grant it to subsequent persons. However, there are no obstacles to appointing several proxies and establishing rules for their interaction. A solution is permissible in which the proxies will be authorized to represent the company jointly or jointly with a member of the management board. Each time the signature of a proxy must bear the notation “procurist” (est. proxy) or “p.p” (per procura).
Proxy regulations in an Estonian company
The granting of a proxy is regulated in detail by the Estonian Civil Code. Upon incorporation of a general or limited partnership, the proxy is granted by all managing partners, and upon incorporation of a limited liability company or a joint stock company, it is granted by the partners, respectively. The proxy can be terminated at any time. Also, a proxy may demand its termination if the legal relationship that is the basis of the proxy ceases. It is worth noting that the power of attorney does not terminate in the event of the death of the sole shareholder of the company.
A proxy must be mandatorily registered in the Estonian Commercial Register. This entry includes the name and surname, as well as a number identifying the individual (for example, the PESEL number). An appropriate resolution must be presented in order for the entry to be made.
A power of attorney is the broadest power of attorney that can be granted. This makes it necessary to carefully analyze the advantages and disadvantages of granting it each time. Certainly, a proxy, (whether in Poland or Estonia) due to the broad catalog of powers, must be a person of special trust. However, the institution of a proxy carries a number of benefits and can be an extremely useful support for the day-to-day work of the company’s management.
SEE MORE ABOUT THE COMPANY IN ESTONIA: