Joint Power of Attorney

The Joint Power of Attorney is a form of power of attorney where multiple authorized representatives are only jointly authorized to represent (§ 48 HGB). It is registered in the commercial register (HR) with the addition "Power of attorney jointly with a managing director or another authorized representative," ensuring that no single representative can act alone, conclude contracts, or authorize payments. At least two signatures are required, enhancing internal control and minimizing liability risks. Companies often use the Joint Power of Attorney to limit the authority of individual executives while maintaining the flexibility of power of attorney. Compared to the Single Power of Attorney, the Joint Power of Attorney strengthens corporate governance by embedding a four-eyes principle. Particularly in medium-sized GmbHs, AGs, and partnerships where multiple managing directors or senior executives share responsibilities, the Joint Power of Attorney creates transparency and security for business partners, creditors, and banks. Anyone wishing to register or delete a Joint Power of Attorney must submit a notarized application to the competent registry court. Important for searchers: Definition, requirements, registration, differences from Single Power of Attorney, and legal consequences are the central topics around the Joint Power of Attorney.

The Joint Power of Attorney indicates in the commercial register that multiple authorized representatives are only jointly authorized to act and sign. Through the handelsregister.ai API, this form of representation can be read from personal data, allowing compliance, KYC, or risk tools to automatically recognize if a company uses Joint Power of Attorney.