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registered power of attorney

Comparative law notes

We recommend this translation since the Prokura is a special kind of power of attorney that is prescribed and defined by statute and requires a formal registration.

Definitions of Prokura

a sweeping commercial power of attorney within the meaning of secs. 48 - 53 of the German Commercial Code (HGB), which must be entered in the Commercial Register. The scope of the Prokura is based on sec. 49 HGB. It applies to all kinds of judicial and extrajudicial transactions and legal acts, but not to transactions that serve to terminate and wind-up the business. A special real estate clause within the meaning of sec. 49 (2) HGB is required for real estate transactions. Externally, the Prokura cannot be restricted; at most, the authorized signatory would be liable for damages internally vis-à-vis his principal if he exceeds any agreements made in that relationship inter se. The Prokura is granted by explicit declaration and expires upon its revocation (sec. 52 HGB), upon termination of the agent's employment or upon the dissolution of the company.