1. Which law is applicable to the legal capacity and right of representation of a legal entity?
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The law applicable to the legal capacity and representation of a commercial company is the law of its country of origin, which is the law of the State in which its operational headquarters are located (Article 3(1) of the Commercial Companies Code).
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2. What criteria/rules are used to determine the applicable law (for example the law of incorporation or the actual seat)?
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The criterion is the operational headquarters of commercial companies (Article 3(1) of the Commercial Companies Code).
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3. Which international conventions have to be respected?
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Not applicable
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4. Are there international conventions with regard to certain countries?
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Not applicable
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5. Are all companies registered in a public register? What are the effects of registration? (please add a link to the register, if possible)
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All commercial companies must be registered in the Commercial Register (Articles 1(1) and 3(1)(a) of the Commercial Register Code).
Registration by definitive transcription constitutes a presumption that the legal situation exists under the precise terms in which it is defined (Article 11 of the Commercial Register Code).
Link to register: https://www.irn.mj.pt/sections/irn/a_registral/registo-comercial
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Registration by definitive transcription constitutes a presumption that the legal situation exists under the precise terms in which it is defined (Article 11 of the Commercial Register Code).
Link to register: https://www.irn.mj.pt/sections/irn/a_registral/registo-comercial
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6. Does a foreign company have to be registered in your public company register?
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A company which does not have its registered office in Portugal but wishes to exercise its activity here for more than one year must establish a permanent representation and comply with the provisions of Portuguese law on commercial registration (Article 4(1) of the Commercial Companies Code).
Permanent representation must be registered in the commercial register (Article 40(2) of the Commercial Register Code).
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Permanent representation must be registered in the commercial register (Article 40(2) of the Commercial Register Code).
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7. Who has the legal right of representation of a legal entity?
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The power of representation belongs to management in private limited companies (Article 252(1) of the Commercial Companies Code) and to the board of directors in public limited companies (Article 405(2) of the Commercial Companies Code).
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8. Must the right of representation be registered (if yes, please add a link to the register, if possible)?
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The appointment and termination of duties, for any reason other than the course of time, of the members of management bodies of companies are subject to registration in the commercial register (Article 3(1)(m) of the Commercial Register Code).
The powers of the company's management bodies derive from the law and do not require any special registration.
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The powers of the company's management bodies derive from the law and do not require any special registration.
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9. If the right of representation must be registered, what legal effect does the registration have with respect to third parties?
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The powers of management bodies do not require registration.
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10. May the rights of the legal representative be restricted? If yes, please explain how (e.g. by laws or the articles of association)?
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The law subordinates the performance of managers of private limited companies to the will of shareholders, determining that their actions are subject to shareholder resolutions (Article 259 of the Commercial Companies Code). This means that shareholders may, on their own initiative, interfere in management.
On the other hand, the articles of association of private limited companies may grant shareholders additional powers to those resulting from the law on a mandatory and supplementary basis, thereby limiting management's powers (Article 246 of the Commercial Companies Code).
In public limited companies, the board of directors is only subject to shareholder resolutions in cases where the law or articles of association so provide (Article 405(1) of the Commercial Companies Code).
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On the other hand, the articles of association of private limited companies may grant shareholders additional powers to those resulting from the law on a mandatory and supplementary basis, thereby limiting management's powers (Article 246 of the Commercial Companies Code).
In public limited companies, the board of directors is only subject to shareholder resolutions in cases where the law or articles of association so provide (Article 405(1) of the Commercial Companies Code).
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11. Does that restriction have any legal effect towards third persons?
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No limitations in the articles of association may be invoked against management or the board of directors that do not result from the company's corporate purpose (Article 260(1) of the Commercial Companies Code).
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12. How can the representative prove the right of representation (e.g. extract in paper from the registry certified by some authorities, extract from public registry)?
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The powers of the members of management bodies of companies can be proved by an extract from the commercial register which provides evidence as to the identity of those persons and that they exercise their respective powers.
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13. Are there any circumstances where the transactions entered into by the legal representative of a company are considered not binding on the company (e.g. for a valid transaction should there be a decision or consent of the shareholders, supervisory body)? If yes, please explain.
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A commercial company, both in the case of private limited companies and public limited companies, may invoke against third parties the limitation of powers resulting from its corporate purpose if it proves that the third party knew or could not ignore, taking into account the circumstances, that the act performed did not comply with that clause and if, in the meantime, the company did not take such action by express or tacit resolution of the shareholders (Articles 260(2) and 409(2) of the Commercial Companies Code).
Article 246 of the Commercial Companies Code provides for private limited companies a number of acts that are reserved for shareholder resolutions, such as, for example, the disposal of real estate, and also provides that the law or articles of association may provide for other acts whose competence belongs exclusively to shareholders.
In public limited companies, the board of directors may be subject to shareholder resolutions in cases established by the articles of association (Article 405(1) of the Commercial Companies Code).
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Article 246 of the Commercial Companies Code provides for private limited companies a number of acts that are reserved for shareholder resolutions, such as, for example, the disposal of real estate, and also provides that the law or articles of association may provide for other acts whose competence belongs exclusively to shareholders.
In public limited companies, the board of directors may be subject to shareholder resolutions in cases established by the articles of association (Article 405(1) of the Commercial Companies Code).
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14. Is it possible to verify the right of representation by digital means from the register? Please indicate the source and in which language the inquiries should be conducted.
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Members of the management bodies of commercial companies are listed in the commercial register. This information can be obtained from a company registration certificate, which can be requested from:
https://eportugal.gov.pt/empresas/Services/Online/Pedidos.aspx?service=CP
Requests are made in Portuguese.
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https://eportugal.gov.pt/empresas/Services/Online/Pedidos.aspx?service=CP
Requests are made in Portuguese.
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15. When anti-money laundering measures are applied, how are the beneficial owners of a legal entity registered in your country identified? Would there be different possibilities for professionals from other countries to identify the beneficial owners? Please indicate the source and in which language the inquiries should be conducted.
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In Portugal, as a measure to combat money laundering, the Central Register of Beneficial Owners (RCBE) was created to identify the individuals who have effective control over legal persons or the like, namely commercial companies.
Portuguese citizens and foreign citizens have equal access to the register.
The register is still undergoing an implementation phase given that the deadline for filing the initial declaration of beneficial owner is 31 October 2019 for entities subject to commercial registration and 30 November 2019 for other entities subject to this registration.
The search for information in the register must be conducted in Portuguese and is carried out via the following link:
https://rcbe.justica.gov.pt/
Note: The links to the cited registration are as follows:
- Commercial Companies Code
http://www.pgdlisboa.pt/leis/lei_mostra_articulado.php?nid=524&tabela=leis
- Commercial Register Code
http://www.pgdlisboa.pt/leis/lei_mostra_articulado.php?nid=506&tabela=leis
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Portuguese citizens and foreign citizens have equal access to the register.
The register is still undergoing an implementation phase given that the deadline for filing the initial declaration of beneficial owner is 31 October 2019 for entities subject to commercial registration and 30 November 2019 for other entities subject to this registration.
The search for information in the register must be conducted in Portuguese and is carried out via the following link:
https://rcbe.justica.gov.pt/
Note: The links to the cited registration are as follows:
- Commercial Companies Code
http://www.pgdlisboa.pt/leis/lei_mostra_articulado.php?nid=524&tabela=leis
- Commercial Register Code
http://www.pgdlisboa.pt/leis/lei_mostra_articulado.php?nid=506&tabela=leis
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