Shared Spaces - What is a power of attorney?
The legal model behind Shared Spaces is called Power of Attorney (Kontovollmacht in German).
Participants of a Shared Space do not have equal ownership of the account like a joint account in the traditional banking sense. After receiving Power of Attorney the participants obtain the right to act on behalf of the Owner regarding any transfer of funds within the Shared Space.
The person authorizing the other to act on his behalf is called the “Owner”, this person is the only account holder. The owner must be a N26 premium account holder e.g. N26 You, N26 Metal and N26 Business You.
This means that whoever created the Shared Space is its legal owner. The owner of a Shared Space:
- Owns all the funds within a Shared Space.
- Can transfer funds freely in and out of the account anytime.
- Can invite people to the Shared Space by granting others Power of Attorney.
- Can revoke the Power of Attorney of a participant at any time.
- Can also close a Shared Space after removing a participant. (all funds in the Shared Space will be transferred to the Owner’s Main Account)
By granting a person Power of Attorney, they’ll have full access to all the money held within a Shared Space. This means that each participant can also transfer funds freely in and out of the Shared Space.
N26 Bank GmbH cannot be held liable for payments covered by the Power of Attorney.