When a company reaches a certain size, it is impossible for the employer to manage everything alone. He needs trusted employees to represent the company. Depending on the needs of the company and the employee's hierarchical level, the employer may want to grant the employee more or less extensive powers of representation.
The commercial agent and the registered attorney have certain similarities. They both have the right to represent the company and to perform certain legal acts on its behalf. In principle, the company is bound by the acts of the registered attorney and the commercial agent. The difference between these two common corporate figures lies in the scope of their powers of representation.
The commercial agent can only represent the company in the usual legal acts of the company. A salesman can sell an article of the company but cannot, in principle, take out a loan at the bank on behalf of the company. In exceptional cases, the employer may give him express authorization.
The registered attorney holder has a much broader power of representation. He can perform all acts that are not contrary to the purpose of the company.
However, the powers of the registered attorney are not unlimited. Contracts with suppliers, sale of property, loans... He or she will sometimes have to obtain specific authorization from the employer before performing certain legal acts.
The registered attorney must, in principle, be registered in the commercial register. The employer may note certain limitations on the employee's powers of representation.
This public registration can have important consequences, including the fate of the contract when the registered attorney enters into a contract that is beyond his or her authority.
Removal of authority
When the employer loses faith in the registered attorney or the commercial agent, he/she will want to remove all rights to represent the company. This is particularly the case when the employer discovers that the registered attorney is exceeding his or her authority.
Can the employee object to the removal of his or her rights to represent the company?