The legal representative of a company is a person who acts on behalf of that company to perform various procedures. It can assume commitments and make decisions that will be attributed to the company as a legal entity.

The legal representation gives the person who exercises it the power to deal with business, obligations and even rights of their represented, in accordance with the conditions agreed upon at the time of the creation of the representation.

The first thing that it is essential to remember is that the legal representative is the only person who is authorised to commit with his signature to the organisation, in the celebration and execution of all acts and contracts. This is also included in the corporate purpose and that are directly related to the existence and operation of a company.

How a legal representative is named

In a small company, the partners usually delegate the function of the legal representative to the general manager, or who the person who directs the operation. Such delegation is governed by the General Law of Companies.

The registration of the legal representative is made in the Register of the place of domicile of the company. There you have to present a certified copy of the company’s incorporation certificate where the validly adopted agreement is established.

The general manager enjoys the general and special powers of representation for the sole merit of his appointment, including the actions indicated in the Civil Code.

Performance of a representative

The decisions taken by the legal representative commit the legal or natural person to whom it represents, but also make it jointly and severally liable.

In the case of dissolution of the company that represents, for example, the legal representative will be jointly and severally liable for the debts of that company (i.e., will become debtor himself).

Certifications granted by a representative

The legal representative of a company assumes decisions in various areas, both internal and external, of the company it represents. These decisions are manifested through certifications.

Internally, it will be the one who signs the work contracts and the certifications of the workers of the company. Your signature will also be required for the validation of accounting reports or financial statements presented by a public accountant or fiscal auditor.

How to replace a legal representative

For any reason that litigation lawyers in Gold Coast must be replaced, the appointment of a new representative must be constituted in the Registry by means of an act of the company drafted for that purpose.

With the certification of the Registry, the data of the company must be updated, in accordance with what establishes its procedure to register, remove and modify legal representatives.

Although there are insurances that protect members of boards of directors and legal representatives, for loss arising from any claim for which they are civilly liable, for “incorrect acts” committed in the exercise of their functions, it is important to bear in mind that these Insurance does not operate when the law is deliberately violated.

Keep in mind, there are many mistakes, some of which are very costly, that a legal representative can commit while performing their duties, especially in areas such as labour and tax, which merit the hiring of specialised advisers that shield the company against subsequent claims and millionaire compensation.…

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