We do not like painting the devil on the wall. We think rather that it belongs to risk management to ensure that an owner or shareholder remains able to act even when that person is temporarily unable to do so themselves. Illness and accidents are only two examples. The roles an entrepreneur holds as owner, managing director or shareholder still have to be filled in such a situation, but by whom and on what basis? This is where the entrepreneur's power of attorney helps.
Structure sheds light on connections that are sometimes complex
The consequences of an entrepreneur being unavailable vary a great deal and depend on the legal form and on how well organised the company is. It therefore makes sense to clarify the individual situation systematically. An owner acts as a person, and whoever can represent them can also represent their position as owner. If an owner has granted a power of attorney and set out clear instructions and guidelines for action, their absence does not automatically lead to an inability to act. A power of attorney is necessary because representation is only possible within the legal framework, and that applies to spouses and life partners too. A managing director, by contrast, is the legal representative of their limited company. If they are unavailable, the company is represented by other authorised commercial representatives. And if there are none, or if their scope of representation is limited, a new managing director may be needed. That person is appointed by the shareholders' meeting. The ability of the shareholders' meeting to act is therefore an important aspect as well, one that has to be considered in relation to the shareholder structure. But if the shareholders' meeting is able to act, it can be important for an individual shareholder to be represented with voting rights despite being absent, if only to protect their interests. Granting an entrepreneur's power of attorney therefore also, and above all, requires it to be embedded in all the other rules of a company. With that, a great deal has already been achieved. All that is then needed is the right authorised representative.
THE MAK'ED TEAM accompanies mid sized companies on fundamental entrepreneurial questions and therefore on succession and preventive emergency planning too. After analysing the essential criteria, THE MAK'ED TEAM works out a roadmap with concrete instructions for action and all the information needed for essential decisions. A preventive emergency concept equips you and your company for the worst case, so that you, and with you your business, remain able to act.
You can find more on succession and emergency planning here.
.avif)
