Business procurator is a business representative. His authorizations are close to unlimited. But he can not manage (sell, mortgage) the company’s real estate. The procurator represents the business in relation to third parties. So, he is responsible for legal tasks and operational tasks of the business. One of his jobs is signing documents. When you open company in Slovenia, you can decide to name a business procurator. Along with the director of course.
A sole proprietor (s.p.) can name a procurator in their company. However, the business procurator has to agree with being appointed to the position. In addition to the managing officer, a shareholder of a company may appoint one or more procurators.
Naming a representative in an s.p.
Business owners often ask our DATA business consultants how to name a representative. They are looking for someone to make their job easier. A procurator will help the business.
There are two different procedures of naming a representative. This depends on whether the business is an s.p. or an L.L.C.
The sole trader can name the representative alone. Here is what they need to bring: consent form, name, surname and the social security number of the person they want to name. Previously the future business procurator has to fill out and sign the consent form. Then the DATA point expert puts the information into a new form. They print this form and the owner signs it. Then the clerk sends the form to AJPES. They send the decision to the s.p. in a few days. At this point the procurator is registered as part of the company. When he visits a bank for example, the clerk will be able to check it in the register. A sole proprietor can remove the representative any time. In fact, they do not need a consent form to do it.
Naming a representative in an LLC
A limited liability company can name one business procurist or more. If the LLC has more than one shareholder, all of them have to name the representative. In this case, all shareholders have to come to the DATA point to complete the process. In fact, they personally have to sign the agreement. This documents states that they agree with naming the new business procurator. The representative must sign the consent form. The form states that the procurist agrees with being named for the position. He signs that there are no obstacles for his appointment according to the second paragraph of Article 255 of the Companies act (ZGD-1). The DATA expert then sends all documents to the registration court. They add the new busines procurator to the register in a matter of days.
The role of a business procurator in a company
What does a procurator do in a company? What kind of authorizations does he have? The power of a procurator is determined in detail by the Companies Act (ZGD-1). According to ZGD-1 he can:
- Sign contracts
- Manage the company’s operations
- Represent the company
- Report to the supervisiory board
- Form strategic goals
- Prepare short-term, medium-term and long-term business plans
- Monitor business operations
- Communicate with the media
We can say that a business procurator has similar jobs as the director. On the contrary, he can not manage the real estate of the company.
Dear (future) business owners and shareholders! In case you are thinking about naming a business procurator, you are kindly invited to seek help of our legal consulting team. We will gladly help you divide positions in your company.
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