272 / 516
of the representation authority shall be determined pursuant to such
legal proceeding.
If the representation authority is notified to the third parties, then
the content and degree of the representation authority shall be deter-
mined in accordance with this notification.
According to article 42 of TCO, it is regulated that the principal
may always limit or cancel the representation authority arising from
legal proceeding. It is void to withdraw from this right previously.
If the principal informed the third parties directly or indirectly that
he has granted authority for representation, then he shall notify such
third parties about cancellation in part or in whole of such representa-
tion authority. Otherwise, he may not allege against
bonafide
third per-
son that he has cancelled such authority.
Article 43 of TCO regulated termination of representation author-
ity arising from legal proceeding. Accordingly, unless otherwise
agreed, the representation authority arising from legal proceeding shall
be terminated if (i) the principal or the representative dies; (ii) there is
a declaration of absence; (iii) the principal or the representative lost
legal capacity; or (iv) the principal or representative is bankrupted. The
termination of legal entity also results with the same consequences.
According to article 44 of TCO, it is stipulated that in case that the
representative is granted with a certificate of authorization, the repre-
sentative shall deliver such document to the principal or submit it to the
place which the judge determines after termination of representation.
If the representative or its successor does not take the necessary
actions in order to deliver the certificate, then they shall indemnify the
damages of bonafide third parties.
According to article 45 of TCO, as long as the representative is not
informed regarding termination of its authority, then the principal and
his successor shall be bond with the consequences of legal proceedings
issued by the representative. However, in case the third parties know
the termination of such authority, this rule shall not be applied.
258
NEWSLETTER 2012