Verifying Chinese Public Security Bureau Corporate Seal Registrations
Validating Chinese corporate seals requires cross-referencing the thirteen digit PSB filing code against provincial police databases before contract execution.
Prc Civil Code Article 165
Meaning
Codified legislation in mainland China establishes the statutory framework for appointing agents to act on behalf of a corporation or an individual. Within this framework, prc civil code article 165 dictates that a written power of attorney must clearly outline the scope, duration, and specific limits of the agent’s authority. This statute applies to all business dealings where a representative executes contracts or interacts with government departments on behalf of a corporate principal.
Authorization Requirement
Compliance with this law requires the principal to execute a formal document that leaves no room for ambiguous interpretation. In corporate practices, applying the enterprise chop to the authorization letter satisfies the written requirement of prc civil code article 165. The document must define the transaction parameters to prevent the agent from binding the company to unlimited liability.
Operational Impact
Foreign suppliers verify agency agreements against this statutory standard before executing procurement or distribution contracts.
Liability Allocation
When an agent acts beyond the parameters defined in the power of attorney, the principal faces exposure unless third parties acted in bad faith. By setting clear boundaries under prc civil code article 165, the law shifts the burden of proof to the counterparty to show that they believed the agent possessed valid authority. This mechanism protects companies from unauthorized commitments made by low-level employees.