Business entities are legal persons (other than the entrepreneur) and as such they cannot directly speak out in legal matters, in order to realize their activities in the incorporation documents, but only through their representatives. They do not have legally relevant will. Therefore, the undertaking may enter into legal relations only through natural persons. Legal activities undertaken by individuals as organs of a corporation (the director, procurator) shall take effect on the corporation represented, but not by those persons. Representation arises under the law, relevant authority act or by the will of the represented person. Under the provisions of Article 84 Paragraph 2 Law of Obligations, authorized representative is based on 1. Law, 2. the general act of a legal person, 3. the act of the body, 4. the statement of the represented person (proxy). In this article explanations were given for representation as legal affair and legal representation of companies based on law and company regulations, particularly who undertakes legal affairs in behalf of companies (attorney) based on law and company regulations, what is the level of attorney proxy and obligation, responsibility for violation of given proxy.