Risk and Continuity
Companies represented by a single person alone, without power of attorney and without a second authorised signatory.
If the only person authorised to represent a company becomes unavailable, operations come to a standstill. Nobody can authorise wages, conclude contracts or access accounts until the court has appointed a representative. In companies whose sole manager has already reached an advanced age, this risk is a practical concern.
Precautions can be taken with manageable effort: through powers of attorney, a registered procuration, an emergency plan or key person insurance.
Insolvency and liquidation of German companies. Where insolvencies cluster, which companies they affect at what age, and what role capital, legal form and the composition of management play.