Glossary

Procuration (prokūra)

In Latvian: Prokūra

Companies Updated

Procuration (prokūra) is a commercial power of attorney that entitles the procurator to conclude transactions and perform other legal acts connected with any commercial activity on the merchant's behalf, including in court. A procurator may sell, pledge or encumber real estate only if specifically authorised to do so.

Only the merchant or its legal representative can grant procuration, and it is entered in the Commercial Register. A procurator cannot pass it on to someone else. When it is granted to several people together (joint procuration), they can represent the merchant only jointly.

Limits on the scope of procuration have no effect against third parties: if a merchant internally forbids its procurator to sign deals above a certain amount, that limit does not bind the counterparty. The exception is a branch procuration where the branch has a different registered firm name.

A procurator signs by adding their own signature and a reference to the procuration, such as "p.p." (per procura), to the firm name.

Example

SIA "Ozols" grants procuration to its finance director. She can sign a EUR 40,000 supply contract and bring a lawsuit in the company's name, but she may sell the company's warehouse building only if the procuration specifically grants that right.

Legal basis

This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.