What is an authorized signatory allowed to do? We explain his duties

The name procurator is derived from the Latin word "procura". This means "power of attorney" and describes well what the role of a procurator is in a company. If an employee is granted procuration, he is given far-reaching rights in the company. However, he is still subordinate to the managing director and the company director.

The possibilities of an authorized signatory

Many large companies grant an employee procuration. This means that he or she is given wide-ranging authority to perform various tasks in the company. An employee who is granted procuration is called an authorized signatory, which means that he or she occupies one of the highest positions in the company. Only the managing director and the company director are delegated to him. Companies with individual branches also use the system of procuration. In this case, a distinction is made between branch procuration and general procuration. Branch procuration refers only to one branch of the company, while overall procuration extends to all branches and the head office.

These are the duties of the procurator

• Hiring employees and concluding employment contracts
• Granting powers of attorney to employees
• Buying companies and company shares
• Representing the company vis-à-vis other companies
• Founding and closing branch offices
• Taking out loans for the company and vergeben
• Schenkungen durchführen

Diese Handlungen darf ein Prokurist nicht vornehmen

• Grundstücke verkaufen oder mit Hypotheken belasten
• Die strukturelle Änderung des Unternehmens
• Das Unternehmen in Außenverhältnissen vertreten
• Die Entscheidungen von Gesellschafter und der Gesellschaftsführer überprüfen