Legal representatives have the task of putting the well-being of their protégés first. They must make decisions in accordance with the explicit wishes of the people they represent, while balancing legal and ethical issues. If they do not represent someone with due diligence, a court may revoke the representation and appoint a more appropriate person for the case. Concerns that may arise with legal representation include financial and physical abuse from people who may not be able to report the abuse. The appointment of the legal representative is a very important decision for both the company and the individual, with serious consequences if the wrong person is appointed, as they receive from the shareholders the legal right to manage the company and make decisions on behalf of the company. Therefore, it is important that when choosing a legal representative, the focus is on confirming the powers granted and ensuring that the selected person is a trusted partner, employee and/or contact of business owners. It is essential to ensure that the powers conferred on the legal representative are sufficient to enable him or her to perform the professional functions required of him or her and, on the other hand, are appropriately limited to ensure that the risk is minimised. When a legal representative is appointed or elected, powers are usually granted by an officially notarized document (nominally in the company`s articles of association). 1) One that represents the other. This could be as a political representative, for example as a member of the House of Representatives.
It could also be someone who serves as an agent. They could also refer a lawyer to represent a client in a dispute. A legal representative is a person authorized to act on behalf of another person. He protects the interests of his clients and is responsible for making decisions when his protégés are unable to do so. Although a person in this position is sometimes a lawyer, this is not necessary, although a lawyer is necessary to determine a person`s status as a legal representative. “Legal representative”. Merriam-Webster.com Legal Dictionary, Merriam-Webster, www.merriam-webster.com/legal/legal%20representative. Retrieved 6 January 2022. The legal representative acts as the “legal face” of the company and is the signatory of all operational activities of the company; In return, they have a legal responsibility to ensure the proper functioning and reputation of the company. For example, a legal representative may need to obtain the owner`s signature before selling business assets, or they may need written authorization to make bank transfers of more than $5,000 per day. A fundamental part of the incorporation process and a reason for the importance of consulting legal experts to define the power and control of the legal representative. If you`re looking for legal representation in the form of a power of attorney, make sure you understand what they`re going to do and how long their powers will last.
To be appointed as a legal representative, the person must be a local or foreigner with the legal right to live and work in the country. In doing so, the individual assumes certain personal legal responsibilities and is therefore a position that is not taken lightly. For example, if a company does not pay all relevant corporate taxes and/or does not act in good faith, local authorities may take legal action directly against the company and the legal representative. Often, clients will ask us to provide a legal representative during the timely process in which a foreign employee obtains an appropriate visa and/or has earned the trust of a local employee who will assume this role. We believe our parent needs legal representation for help with financial management, personal information and health inquiries. Guardians are examples of legal representatives. Guardians may be appointed by the child`s parents or given powers by them, such as: when parents travel and establish temporary guardianship so that a friend can legally represent their child at home. In addition to monitoring the welfare of minors, legal guardians may also supervise persons who frequently have cognitive and/or intellectual disabilities and who, in the opinion of the law, are unable to manage their own affairs. There are several ways for someone to become a legal representative. Since this position has responsibilities as well as powers, it is generally not imposed on anyone. A person considered for such a position will be consulted and will have the opportunity to refuse or recommend another person.
Once a person has expressed a willingness to serve in that capacity, documents can be filed to create a legal status that allows that person to act as an agent. Biz Latin Hub has extensive experience in the incorporation process of the company; If you have any questions or concerns regarding the incorporation process and/or the role of legal representative, please do not hesitate to contact us. Nevertheless, we have encountered cases where the legal representative acted without the prior consent of the shareholders and carried out actions such as selling company assets, signing contracts without authorization and/or granting company funds to support friends and/or family.