Comment: The Law on Succession for Sole Proprietors in Austria, Poland and Switzerland

Abstract

The death of a business owner leads to significant implications in business run by such person. The article presents the most important mechanisms aimed at smooth succession of one-person businesses in the Republic of Austria, the Swiss Confederation, and the Republic of Poland. They include appointment of a proxy and power of attorney, which do not expire as a result of death of businessman (principal) and regulations permitting business continuity after the death of a business owner (by the decision of his legal successors), who during his life did not take advantage of legal mechanisms ensuring business continuity after his death.The article focuses on the diversity and attractiveness of these regulations. Despite the fact that the regulations do not eliminate problems in handing over the business to a successor, they have a positive impact on the business succession issues. When granting a power of attorney (or appointment of a proxy), which can constitute a tool ensuring business continuity in Austria or Switzerland immediately after the death of its owner, requires activity of principal-businessman running a specific business activity, the right to continue business activity (continuity) after the deceased business owner who is a natural person is a possibility, which – despite the lack of business owner’s activity to grant such authorization – can be used by his successors.