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Grant a power of attorney

Grant a power of attorney

A Power of Attorney (POA) is a legal and written document that allows you to appoint any other person or any organization to handle your business affairs when its  needed to Grant a power of attorney.

The person appointed referred to as an agent, or attorney-in-fact, and the person who appoints is known as the Principal.

This power of attorney is also known as a Letter of attorney. There are several types of power of attorney that can be used for a different purpose.

POAs are powerful documents that authorize someone to make important decisions about your family, finances, and healthcare, even when you can’t make them consciously

The notarial credentials of a power of attorney include the signature of the person’s signature and the validation of the content of the document.

The power of attorney needs to be explicit.

The property must be described in detail as location, quadrature, the basement or ceiling, the common parts of the building, the right of construction or the yard.

You must indicate whether the authorized person has the right to negotiate the terms of the notarial deed, whether he has the right to receive the sale price, and so on.

Grant a power of attorney

TIP: Read carefully the documents  & power of attorney before you sign them.

Do not authorize people you do not know or trust in a case of grant a power of attorney

A power of attorney is a document to be signed only by the party issuing it, that is, the authorized person does not undertake to perform the assignment.

To make arrangements for this, you need an additional contract signed by both parties.

A power of attorney is required when the owner of a real estate wants to dispose of (sell, donate, replace, transfer over viewing and maintenance, establish a right in rem, etc.).

According to the legal requirements in a power of attorney of this type, it is necessary to have a description of the specific properties to which it refers.

For this reason, carry and submit a document of ownership to the notary in order to make the document true.POWER OF ATTORNEY

It is still debatable whether the sale price should be explicitly stated.

The power of attorney for disposal of a real estate may be temporary or indefinite, but together with it 2 signatures are signed. declarations –

The first is under Art. 264, para. 1 of the Tax law- with which the person declares that there are no outstanding obligations for taxes, duties and obligatory insurance contributions, which have not been extinguished;

The second declaration – the one under Art. 25, para. 8 of the Notary act is for citizenship and civil status.

The first statement is valid for 6 months, so even if the power of attorney is indefinite, the declaration must be renewed – signed and authenticated again before a Notary.

Validity of the power of attorney

The validity of the power of attorney is determined by the authorizing person, but it also depends on various factors, especially those in practice.

There are several ways to determine the validity of the power of attorney.

In order to determine its validity, the power of attorney may contain any of the texts listed below.

(Third countries, authorities and individuals (notably banking institutions and notaries) to whom the power of attorney will be addressed have the right to set their validity requirements on a time-limit.)

1. The power of attorney shall record the period of its validity by the authorizing officer.

2. The power of attorney is valid until the designated action for which it has been issued.

3. Power of attorney applies until it is withdrawn by the Authorizing Officer (but not more than 10 years from the date of issue).

4. Power of attorney is indefinite. (but no more than 10 years from the date of issue).

Termination of the power of attorney

The power of attorney shall terminate upon one of the following:Grant a power of attorney

1. The authorizing officer shall withdraw the power of attorney.

2. The authorized person shall refuse to execute it.

3. The term specified in the power of attorney has expired as a term of validity.

4. With the death of one of the parties under the power of attorney.

5. With the seizure of the document by a body of authority or its detention as a written proof by a notary and others. (Here the document is valid but can not be used by the authorized person).

Important facts about the power of attorney

1. The power of attorney shall be valid only in the original. If the original of the power of attorney is not presented, it may be assumed that it was withdrawn by the authorizing officer.

2. The notarial power of attorney is the most commonly falsified / falsified document. We remind you that this act is being prosecuted and punished by the law enforcement and judicial authorities.

Withdrawal

To withdraw a notarized power of attorney, please contact the notary who certified it.

The withdrawal of the power of attorney shall be by several means, depending on the reason for the withdrawal.

What are the relationships between the parties; is there a danger of abuse? what volume of rights (types of rights) contains the power of attorney; and others.

Tip : If the power of attorney is entitled to operate a bank account, first notify your bank to note this fact in your bank account.

Types of power of attorney

There are generally two types of POA which are as follows:

1.General Power Of Attorney (GPA)- A General Power Of Attorney that gives all the powers and rights to your attorney-in-fact to manage all financial decisions including properties, paying bills, making the investment and any financial transaction that will be conducted on your behalf.

This is a position of significant trust.

2. Special or Limited POA (SPA)- A special or limited POA gives the power to an agent to manage financial, investment and banking matters.

For example, Special POA gives any person the right to sign a deed to the property for you on a day, when you are not present at that time.

– Re-authorizing. It is issued on the basis of a notarized power of attorney in which it is explicitly stated that the authorized person has the right to re-authorize other persons (to grant the rights under this power of attorney to third parties, in whole or in part).

Types of powers of attorney according to Notary Tariff

1. According to the number of delegates (signers).

2. By type of authorization and re-authorization.

3. According to the number of redeployed persons, and as such, the redeployed person is the proxy. Cumulatively with the following conditions.

4. According to the type of power of attorney and from the point of view of the LNHM Notary Public:

– usually;
– for lease;
– for the acquisition, sale, exchange, division of real estate (in the case of transfer or establishment of real rights over immovable property);

-repowering.

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Recognition of foreign judgments

Recognition of foreign judgments

One of the core consequences of globalisation has been the rapid increase in trans-national litigation and the associated need to enforce judgments across national borders. Recognition and enforcement of foreign countries’ court decisions in another country has always been a delicate and difficult issue.

It is known that the system does not have a universal rule and each country adopts its own valued judgment with regard to foreign decisions.

There is also a clear and relatively easy procedure for the enforcement of judgments and other acts passed in other EU Member States.

The Civil process Code does not contain provisions on recognition and enforcement of decisions and acts of countries other than EU Member States.

The Regulation Recognition and Enforcement of Foreign Judgments

Recognition and enforcement of judgments rendered in non-EU countries should be subject to different procedures under the Code of international private law act.

According to part four of the CMR, the conditions introduced in Art. 117 The Code of international private law act for recognition and enforcement is as follows:

The decisions and acts of foreign courts and other bodies are recognized when:

  1. – the foreign court or authority was competent under the provisions of Bulgarian law:
  2. – the defendant was served with a copy of the application, the parties were regularly summoned and the basic principles of Bulgarian law related to the defense were not violated ;
  3. – if between the same parties, on the same grounds and for the same request, no decision of a Bulgarian court has entered into force;
  4. – if there is no pending trial between the same parties, on the same grounds and for the same claim, before a Bulgarian court
  5. – recognition or admission of performance is not contrary to the Bulgarian public order.

Legal frame of recognition of foreign judgments

The Recognition of foreign Judgments is made by the body before it.

In the event of a dispute over the conditions for recognition of the foreign judgment, a settlement action may be brought before the Sofia City Court.

A claim is made before the Sofia City Court to allow enforcement of a foreign judgment.

The application shall be accompanied by a copy of the decision certified by the court which issued it and a certificate by the same court that the decision has entered into force.

These documents needs to be certified by the Ministry of Foreign Affairs of the Republic of Bulgaria.

The court shall examine of its own motion the conditions under Art. 117.

The defendant in the procedure for recognition and enforcement of the foreign decision can not invoke violations under Art. 117, item 2, which he could have pointed out before the foreign court.

The court does not go into the examination of the substance of the dispute, resolved by the foreign court. 

The debtor may object to the discharge of the obligation on the basis of circumstances that have arisen after the entry into force of the foreign decision.

The debtor may not object to the discharge of the obligation on the basis of the circumstances after the enforcement decision has entered into force.

Regarding the recognition of the consequences of foreign enforcement and security acts – the regulation is in Art. 124 International law act in Bulgaria-

If there is a claim before a Bulgarian court for the recognition of a judgment given in a non-EU country and there are no other international instruments in the field of family law that have been signed and ratified by both countries.

The foreign state at the same time as the CPC does not contain provisions on recognition and Enforcement of Foreign Judgments other than EU Member States, the recognition procedure will be Part Four of the CMR, considering the legal conditions under Art. 117 KMCP.

The court procedure in Bulgaria

A decision certified by the Ministry of Foreign Affairs of the Republic of Bulgaria must be submitted to the court, that it is apparent that the same has entered into force.

Recognition foreign decisions, Bulgarian lawyers recognition of court decision, Court decisions in Bulgaria, Bulgaria recognition court decision lawyerAfter assessing the conditions under Art. 117 CMMR and to check whether it is contrary to the Bulgarian public order, the court decides whether it admits or not.

It is important to note that, according to the provision of Art. 121 para. 1 Code international private law act, the court in the exequatur procedure does not examine the merits of the dispute.

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Transfer company shares LLC Bulgaria

Transfer Company shares LLC Bulgaria

The most common and most popular legal-organizational form for performing micro, small or even medium business in Bulgaria is Limited Liability Company. Through the registration of a company,  usually a small number of partners of shares resources and efforts to carry out their business project.

But often different reasons, both objective and subjective, lead to situations in which one or more partners leave the company.

When leaving the company without the consent of the other partners, it is necessary to carry out and terminate the procedure of unilateral departure of the company. It is initiated by sending a notice under Art. 125, para. 2 and 3 Commercial Code. However, when leaving the company it is agreed and shared with the other partners, it is done by transferring the shares held to the other partners or to a third party with a contract.

Transfer company shares LLC Bulgaria, company lawyer Bulgaria, Transfer shares Bulgarian company, Purchase shares Limited company Bulgaria

Transfer company shares LLC Bulgaria, company lawyer Bulgaria, Transfer shares Bulgarian company, Purchase shares Limited company Bulgaria

The transfer of shares, even when the company is sole proprietor, should be distinguished from the transfer of a company and the transfer of an undertaking.

Shares, a company, and an enterprise are three differenmet concepts and three different object deals respectively. According to the Commercial Law, a company is the name under which the trader exercises his trade and is signed. The business firm may only be transferred with the enterprise but may be changed by the trader at its own discretion at any time.

The enterprise, for its part, represents a set of rights, obligations and factual relationships. The transfer of the enterprise (in whole or in part) is a transaction other than the transfer of the shares in the company.

The parties to the transfer agreement are the traders themselves (ET or companies) and the parties to the share transfer agreement are the owners of these shares (natural or legal person) and their purchaser (natural or legal person).

After transferring the property, the property rights (property, cars, belongings, inventory, receivables, debts, etc.) are transferred from one trader to another, whereas, after the transfer of shares, these assets remain the property of the same company. this company.

Transfer of shares from Bulgarian LLC 

The transfer of shares is regulated in Art. 129 Commercial Code. When this transfer occurs between partners, it becomes free (unless otherwise provided in the Company Agreement). However, if the shares are transferred not to a third person or persons, it is necessary that the buyers apply for their admission to the company, which is considered by the General Meeting. Ie. the transfer of shares to outsiders is made by the will of the other partners. On the basis of the submitted application a General Meeting is convened, which votes and decides on the admission of a new partner in the company. The decision is taken by a multiple of ¾ of the capital, unless a larger majority is provided for in the company agreement. This decision is formed in a protocol, which (in view of amendments to Article 137 of the Commercial Code) should be with a notary certification of the signatures and the content.

If the General Meeting approves the planned shareholding, a share transfer contract is prepared. Shares can be transferred at both a nominal and an agreed (market) price – lower or higher. The contract is notarized on both the signatures and the content.

Changes in the Commerce Act since the end of 2017 have also introduced a new requirement for the transfer of shares – whether between partners or outsiders. The new requirements were included in Art. 129 of the Commercial Code.

According to them, for the transfer of the shares, the company should have no outstanding salaries, indemnities and compulsory social security contributions of the employees, including employees, whose employment relationship was terminated within three years prior to the transfer of the shareholding.

However, it has not been clear from the changes what document the fulfilment of this requirement is, and the changes that have been made so far should be further modified to clarify the procedure.

Thus, in mid-February 2018, the law was supplemented, that in the Commercial Register, declarations in a form drawn up by the Company Manager and the transferor of the shares are submitted that the company has no outstanding and outstanding obligations of this kind. A model for such a declaration shall be drawn up by the Minister of Justice and the Minister of Labor and Social Policy. Transfer company shares LLC Bulgaria, company lawyer Bulgaria, Transfer shares Bulgarian company, Purchase shares Limited company Bulgaria

After application of the declarations, the transfer of the shares is entered in the Commercial Register, but the Registry Agency is obliged to immediately inform the Executive Department “Main Labour Agency”, which can verify the authenticity of the declared facts. In the event that discrepancies between the declared circumstances and the reality are found, GI EA notifies the Prosecutor’s Office of the possible involvement of the pshareively responsible detractors. that the company has no outstanding and outstanding obligations of this kind.

A model for such a declaration shall be drawn up by the Minister of Justice and the Minister of Labor and Social Policy.

After application of the declarations, the transfer of the shares is entered in the Commercial Register, but the Registry Agency is obliged to immediately inform the Executive Department “Main Labour Agency”, which can verify the authenticity of the declared facts. In the event that discrepancies between the declared circumstances and the reality are found, GI EA notifies the Prosecutor’s Office of the possible involvement of the pshareively responsible detractors. that the company has no outstanding and outstanding obligations of this kind. A model for such a declaration shall be drawn up by the Minister of Justice and the Minister of Labor and Social Policy. After application of the declarations, the transfer of the shares is entered in the Commercial Register, but the Registry Agency is obliged to immediately inform the Executive Department “Main Labour Agency”, which can verify the authenticity of the declared facts. In the event that discrepancies between the declared circumstances and the reality are found, Executive Department “Main Labour Agency”, notifies the Prosecutor’s Office of the possible involvement of the pshareively responsible detractors. but the Registry Agency is obliged to immediately notify the IA “GLP”, which can verify the authenticity of the declared facts. In the event that discrepancies between the declared circumstances and the reality are found, GI EA notifies the Prosecutor’s Office of the possible involvement of the pshareively responsible detractors. but the Registry Agency is obliged to immediately notify the IA “GLP”, which can verify the authenticity of the declared facts. In the event that discrepancies between the declared circumstances and the reality are found, GI EA notifies the Prosecutor’s Office of the possible involvement of the pshareively responsible detractors.

After the shares are transferred, a new general meeting is convened, in which the new owners – who have acquired the quality of partners – participate. At that meeting a decision is taken to accept and sign a new company contract and to enter the changes in the Commercial Register. Other decisions can also be taken at this meeting (seat, address of management, company, etc.). If the old partner was also a manager (except a partner), and if the new manager is also planned, a decision is made at that meeting to release the old and appoint the new partner as manager.

Entry in the Commercial Register is made by submitting an application Form A4, which is signed and deposited by the manager of the company. The law lacks the empowerment of the old shareholder who has ceased participating in the company, if he is not a manager; declare the entry of the change. The record of the new manager shall also be accompanied by documents related to this quality (specimen, declarations, etc.). Adoption of a new partner has effect vis-à-vis third parties from its entry in the Commercial Register.

Transfer of shares from Bulgarian LLC

A particular feature of the transfer of shares in such a company is that the owner is a single person. That’s why the only partner is called the sole owner of the capital. This sole proprietor can transfer all or part of its shares. In the second case, the company will be transformed into OOD.

For the transfer, a decision of the sole proprietor is required, which is reflected in a notarized record. Following is the conclusion of a contract for the sale of the shares, which is also certified notary. In the case of transfer of shares in EOOD no applications for the admission of a new partner are prepared and submitted as a party to the share transfer contract is the sole shareholder in the company. However,the requirements of Art. 129, para. 2 Commercial Code for lack of obligations are valid here as well.

After the transfer of the shares, the new sole owner takes a decision on the dismissal and appointment of a manager, the adoption of a new instrument of incorporation, as well as other changes upon request. If the sole proprietor transfers only part of his shares, these decisions are taken by all the partners.

Nature and characteristics of the transfer

With the transfer of shares, in practice, the membership of the company is transferred and its personnel is changed. Both membership rights and obligations, including non-material ones, are transferred. The transfer may only take place if the shares sold are not apprehended for the obligations of the owner and the divestment is entered in the TP. The transfer itself can take the form of a sale or sale, but it can also be shaped like a donation, a replacement, a contribution, etc. If the case vendor has not paid in full its share contribution, 130 and both parties to the transaction are jointly and severally liable for this outstanding obligation. Shares may be held in joint ownership (one share is sold to several persons), unless the Company Agreement prohibits this. Theoretically, where shares are held in joint ownership by several individuals, it is possible to transfer an ideal part of the share – Art. 132 ТЗ.

Register fees 

In order to carry out the procedure and record the transfer to the Commercial Register, different fees are payable. All notarial certification of the signatures and the content of the documents applied shall be paid in accordance with the Tariff of Notary Fees to the LIND.

 

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