companydata.dkPower to bind (tegningsregel)
The tegningsregel (power-to-bind rule) is the provision in a company's articles of association determining who can enter binding agreements on the company's behalf — e.g. 'the company is bound by one director' or 'by the entire board'. It is public in CVR.
The rule determines whose signature binds the company. Typical wordings are 'the company is bound by the executive board', 'by two board members jointly', or 'by the chairman together with a director'.
Why check it?
Before entering a significant agreement, make sure the signatories can actually bind the company — otherwise the agreement may not hold. The rule and the registered management can be looked up on the company's page, so you can verify both in one place.
Related terms
Executive board (direktion)
The direktion (executive board) is a company's day-to-day management — one or more directors registered in CVR who run daily operations. Every Danish limited company must have one.
Board of directors (bestyrelse)
The bestyrelse (board of directors) is a company's supreme governing body: it sets strategy, appoints the executive board, and supervises day-to-day management. An A/S must have a board (or supervisory board); in an ApS it is optional.
Private limited company (ApS)
An anpartsselskab (ApS) is a Danish private limited company where the owners are liable only for their contribution. It is Denmark's most common company type and requires share capital of at least DKK 20,000.