Text consolidated by Valsts valodas centrs (State Language Centre) with amending laws of

Section 35. Issuance of a Procuration and Restrictions on Proctor

(2) A procuration may be issued simultaneously to several persons. On the basis of such a procuration (joint procuration), the joint proctors have the right to represent the merchant only jointly.

(3) A proctor does not have the right to transfer the procuration to another person.

(4) A person who in accordance with the restrictions specified in the first sentence of Section 221, Paragraph four and Section 304, Paragraph three of this Law may not be a member of the board of directors of a capital company, may not be a proctor.

Section 36. Restrictions on the Scope of a Procuration

(1) Restrictions on the scope of a procuration shall be void as to third parties.

(2) The provisions of Paragraph one of this Section shall especially apply to such restrictions of the scope of a procuration, as a result of which the procuration may be used only:

1) in relation to specified transactions, specified types of transactions or their scope;

2) when certain circumstances exist; or

3) for a specified time or in a specified area.

(3) The restriction of the scope of a procuration in relation to one of several branches of a merchant’s undertaking (a branch procuration) shall be in effect as to third parties only if such branches have different firm names entered in the Commercial Register.
Section 37. Signature of a Proctor
A proctor shall sign adding to the firm name of the merchant his or her signature and an indication of the existence of a procuration (“procurists” [proctor], p.p., per procura).
Section 38. Application for the Issuance of a Procuration, and Entering of Changes in the Representation Rights of a Proctor and Termination of a Procuration in the Commercial Register
(1) The issuance of a procuration shall be notified by the merchant for entering in the Commercial Register, indicating the given name, surname and personal identity number (if the person does not have a personal identity number – the date of birth, the number and date of issue of a personal identification document, the state and authority, which issued the document) of the proctor.

(2) If a joint procuration is issued or if in the procuration the proctor has been granted the right to alienate, pledge or encumber immovable property with rights pertaining to property, the merchant shall especially indicate this in the application regarding entering of the procuration in the Commercial Register.

(3) Changes in the representation rights of a proctor and the termination of a procuration shall be notified by the merchant for entering in the Commercial Register.

[14 February 2002; 16 March 2006; 15 April 2010]
Section 39. Termination of a Procuration
(1) A merchant has the right to unilaterally revoke a procuration at any time irrespective of the legal relationship, upon which basis the procuration was issued. The revocation of a procuration shall not influence the rights of a proctor to receive the contracted remuneration.

(2) After the death of an individual merchant, the procuration shall remain in effect.

(3) A procuration shall terminate upon the death of the proctor.

[14 February 2002]

Section 40. Ordinary Commercial Power of Attorney

(1) If a merchant, without issuing a procuration authorises some other person to conduct in his or her name commercial activities, to conclude specific types of transactions related to the commercial activities performed by the merchant or also to conclude separate transactions related to the commercial activities performed by the merchant, such a power of attorney (an ordinary commercial power of attorney) shall relate to all lawful activities which are usually directed to the performance of such commercial activities or the concluding of such transactions.

(2) A person with a commercial power of attorney may alienate, pledge or encumber immovable property with rights pertaining to property, undertake obligations under bills of exchange, take loans or represent the merchant in court only if such rights have been especially granted to them.

(3) Any other restrictions on the authorisation granted to a person with a commercial power of attorney shall be in effect as to third parties only if they knew or should have known of such restrictions.

Section 41. Representatives Authorised to Conclude Transactions

(1) The provisions of Section 40 of this Law shall also be applied to those persons with a commercial power of attorney who are commercial agents or who, as employees of a merchant, have been entrusted to conclude transactions in the name of the principal outside his or her undertaking.

(2) The authorisation issued to the persons with a commercial power of attorney referred to in Paragraph one of this Section, does not give them the right to change concluded transactions.

(3) The persons with a commercial power of attorney referred to in Paragraph one of this Section:

1) may receive payments if they are authorised to do it;

2) shall be considered as authorised to take notifications regarding deficiencies in goods, regarding the supply of goods and other similar notifications, with the assistance of which a third party uses or keeps their rights in relation to the improper fulfilment of obligations, as well as using the rights to the securing of evidence belonging to the principal.