What is the difference between different mandate types?
There are four mandate types for organisations:
- two related to carrying out transactions on behalf of one’s own organisation
- two related to mandates received from customers.
Carrying out transactions on behalf of an organisation
- A person or an organisation (assignee) who has been granted a mandate for transactions may carry out transactions related to a company, association or other organisation’s (assignor) own affairs on its behalf.
- A person given a right to grant a mandate may grant mandates for transactions on behalf of a company, association or other organisation (assignor). If such a person needs to act on behalf of the assignor, they must also give themselves a mandate for transactions.
Acting on behalf of the organisation’s customer
- Customers (assignor) may grant a mandate for transactions to an organisation (assignee). Only employees who have been granted a mandate to represent can carry out transactions using the mandates for transactions granted by customers.
- A person who has the right to grant mandates on behalf of an organisation may also grant an employee a mandate, which of a type representative’s right to grant a mandate. Such an employee may grant other employees mandates to represent the customers and request mandates for transactions from other organisations or persons.