PoA - Power of Attorney or Letter of Authorization in Germany
Why we need a Power of Attorney/PoA/Proxy:
The debtor and – in enforcement proceedings – the bailiff or the court requests to present a signed PoA of the client.
Due to new law provisions for bailiffs they have to request an original signed PoA before transfer of any collected monies.
Furthermore a PoA is needed in case of filing your claim in bankruptcy proceedings.
A PoA does not determine any conditions with the client!
A PoA is document, a certificate of authority, which proves that the client has mandated the attorney/lawyer to act on his behalf. The debtor or the bailiff must be secured that the attorney is in fact entitled to act on behalf of the client, to claim for the debt, to initiate court proceedings and – this is often most important – to receive payments of the debtor.
The debtor is interested that the attorney is authorized to claim for the debt or to receive payments as if the debtor would pay to the client directly (full power of attorney).
The PoA is a document directed to the debtor or court/bailiff, a proof of authorization, and not an agreement, contract or a document which changes conditions or establishes conditions between the client and attorney not agreed before. Regularly it is not a legal requirement to present a PoA. But if the debtor/bailiff/court requires to present a PoA we must – otherwise the debtor can ignore our letters and claims like nothing has happened.
Therefore we always recommend to sign and send back PoA by e-mail plus by mail (original) to avoid discussions with the debtor, bailiff or court about our mandate.
When the PoA is indispensable? If it becomes necessary to terminate a contract it is legally indispensable to provide the debtor with a signed PoA. The same is in bankruptcy proceedings: The administrator requires to present a PoA in each case.
What is to fill in?
The PoA has to inclose:
- Full name of the client
- Full name of the debtor
- the matter f.e. the invoice No. … or contract … - the rights the attorney is entitled for (full power of attorney).
- Name and signature especially the full name of the legal representative of the client (company) like Manager, CEO or MD.
Our draft is in German anf English language, both with identical content.
It must be the creditor, the contractual partner who issues the PoA and it must be obviously in which case the client authorizes the Attorney to act.
Therefore it is not sufficient that a different party than the client signes the PoA or to send only the second page of our draft.
You can download a LOA/PoA here.