Meaning
A specific type of commercial power of attorney granted under European civil law codes allows an individual to act on behalf of a business entity. The procura confers broad authority to enter into contracts, represent the firm in court and manage general operations. This status is formally recorded in a public commercial register to notify third parties of the individual’s right to sign.
Authority Scope
An individual holding this power can bind the company in almost all types of transactions required by the business. While the procura is extensive, it typically does not include the power to sell the company or its real estate without additional specific consent. This creates a reliable environment for suppliers and customers who can check the register to verify a signature.
Legal Registry
Transparency is maintained through the mandatory listing of the person’s name and the extent of their powers in the official records. A revoked procura must be removed from the register immediately to prevent the individual from continuing to act for the firm. Third parties can rely on the accuracy of the register even if the internal limits of the company were exceeded.
Corporate Governance
Organizations use this tool to delegate management tasks to trusted employees without granting full director status. The procura allows a company to scale its operations by enabling multiple people to sign for the entity. It is a standard feature of manufacturing and trading firms operating in civil law jurisdictions.
