In a legal context, compliance means adhering to laws, regulations, and standards that govern the actions of individuals and institutions.
It may seem like a simple thing to do, but it’s not!
Officers, directors, legal representatives, accountants, and agents of companies need to be absolutely certain of the actions they take and their responsibilities—yes, personal responsibilities!
When someone takes on a management position, a legal representation within a company, whether a corporation or a limited liability company, they must have a thorough understanding of what they must and can do, of the acts they can effectively perform, especially with regard to the powers entrusted to them and the limits imposed on them.
In order to understand a company’s Bylaws or Articles of Incorporation, regardless of its corporate structure, it is essential to observe the acts that are permitted.
Limits on acts such as joint signatures, individual signatures, amounts, and limits received must not be exceeded, so as not to constitute an abuse of power, and responsibility shall fall on the person who performed such acts.
In addition to the civil and criminal liabilities incurred by the person who committed excessive acts, another consequence may be the nullity of such acts, causing complications and even losses to the legal entity they represent.
Currently, with the use of Digital Certificates, which are mostly kept by subordinates, extra care must be taken: every action must always be verified and authorized by the certificate holder.
