One signature from a managing director can create major liability for a company — and the damage is often discovered too late

Examples may include:• employment agreements or annexes containing excessive termination compensation clauses;• commercial contracts featuring disproportionate penalty clauses;• agreements concluded at non-market conditions or containing otherwise unfavorable terms.The problem becomes even more serious when documents are backdated after the managing director has already left the company.Under Bulgarian law, a backdated agreement may be challenged on the grounds that the director no longer had representative authority at the actual signing date.However, proving backdating in practice is an uphill battle. Forensic methods are limited, qualified experts are scarce, and some examinations involve partial destruction of the document — a risk courts are...