Powers of Attorney
procuration - prokura
In Austria, a variety of powers attorney exists. The most extensive power of attorney is the so-called
“Porkura” - procuration.
It entitles to all Kinds of judicial (juristisch) and extrajudicial (außergerichtlich) businesses and legal
activities a business organization might be confronted with.
Procuration can only be given by registered entrepreneurs through a detailed statement. It always
has to be registered in the company register.
authorised manager
That is a person who holding a power of attorney. He has a variety of rights.
He is allowed to:
 take out a credit
 buy and sell goods and securities
 employ staff and dissolve employment contracts
 confer other powers of attorney and represent the company in court
legal limitations
According to the Austrian law, an authorised manager is not allowed to:
 encumber or sell real buildings (property),
 dissolve or sell the company,
 accord a “Prokura” or endorse it,
 sign registration form for the company’s registration in the company register, and
 sign the inventory and the balance sheet.
single procuration
A procuration without any other limitations is called single porcuration or unlimited procuration. But
the registered entrepreneur giving procuration is entitled to further limitations of authority:
 Joint power of attorney: An authorised manager is only authorised to sign together with one
or more authorised managers.

Mixed power of attorney: The authorised manager is only authorised to sign together with
one executive manager or one member of the board of managers.

Procuration with limitations to a branch: The authorised manager is only authorised to sign
for one or more definite branches of the company.
ppa
All these different types of limitations are only legally (binding) to others if they are registered in the
company register.
If an authorised manager signs on behalf of this company, he has to ad “ppa” in front of his or his
companies name.
Other types of power or attorney – “Handlungsvollmachten”
In general, a power of attorney entitles only one business activities and transactions a specific
business is usually confronted with.
In addition to the activities which are prohibited for authorised managers, someone with a power of
attorney is not allowed to be liable on a bill of exchange, take out loans, and to be in court on behalf
of the company.
Powers of attorney can be conferred by:
 entrepreneurs,
 authorised managers,
 someone with a power of attorney including an explicit authorisation to give powers of
attorney.
no registration in the company register
Further there is no registration in the company register.
In Austria such a power of attorney doesn’t require an explicit statement.
types of power of attorney

Full powers: This entitles to all businesses and legal matters a specific business usually is
confronted with.

Authorisation for a specific type of businesses activity: In this case one is only entitled to a
specific type of business activities
For example:
 a purchasing agent is allowed to purchase materials and products
 a cashier is allowed to except payments

Power of attenory in a specific act: This entitles to a single, exactly defined activity
i.V. (in Vollmacht): If someone with a power of attorney signs
i.A. (im Auftrag): has to be added either in front of his name or his company name
special or particular power of attorney
This Type of power of attorney can be conferred for every type of business or legal activity. By a
special power an authorised manager may be entitled to
For example:
 sell real estate
 the holder of full powers may be entitled to be liable on bills of exchange
Project
The company is too small, so they need no procuration. But Bea (she works in the company) is
allowed to significant business letters.