Managing Romanian companies
Managing directors of Romanian companies cannot grant authority to represent management to anyone who is handling the daily tasks of the company. Now only special mandates granting authority for specific tasks to a third party to represent management are authorized.
This could have significant ramifications on the way foreign based managing directors delegate power to a representative located in Romania so that the Romanian company can continue to function properly.
As a result, foreign based managing directors must:
- either nominate the representative for the Romanian company as a co-manager. This option has the advantage of holding the other representative accountable;
- or define a special mandate for each task to be carried out by the representative located in Romania. This offers the advantage of allowing managers to more efficiently monitor the management of the company.
