Power of attorney in the light of the law on business companies

In this paper we deal with the issues related to legislative solutions for a legal institute of power of attorney. The novelties introduced into the Law on Business Companies of 2011 are compared to the former law, as related to the expansion of the power of attorney. An authorized person may not, unless explicitly authorized otherwise, represent a company and undertake legal actions as related to acquisition, disposal, or mortgage of real estate, shares and equities belonging to the company, by taking over bills, undertaking guarantee obligations and taking out loans. He cannot represent the company at court or in arbitrage procedures too.