Using a Power of Attorney for Company Shares, you can choose a third party to act in your best interests regarding company shares. Suppose you own shares in one or more firms but spend most of your time abroad and cannot attend shareholder meetings in person or sign resolutions. In that case, you can designate a representative through a Power of Attorney for Company Shares.
Use of Power of Attorney for Company Shares
A Power Of Attorney for Company Shares can be used to:
- Approve a variety of tasks, including signing resolutions,
- Attending shareholder’s meetings,
- Transferring shares, and
- Defending your rights in front of judges, federal and local government agencies, third parties, etc.
Use a Power of Attorney for Company Shares if you want to give someone the power to handle your shares in a company while you are away. The extent of the agent’s powers and authorities is up to you; they may be general or restricted to specific duties.
What is a Power of Attorney?
An individual or corporation can authorize another person or company to act on their behalf by signing a Power of Attorney (POA). The person who approves is known as the ‘principal or grantor,’ while the authorized person is known as the ‘attorney-in-fact, agent, or grantee.’ POA can be used for various purposes, including business, private affairs, finance, real estate, etc.
- The grantor of the POA must be at least 21 years old and mentally healthy in the UAE.
- Suppose a power of attorney is necessary for a foreign business owner but has already been approved in another nation. In that case, it must also be translated into Arabic and legalized in the UAE.
To handle these procedures for using a foreign POA in the Emirates, you can seek the assistance of attorneys in Dubai.
The grantor must sign in all relevant capacities and designate a legal representative in the relevant subjects to give a power of attorney. Any misconduct will be viewed as fraud and punished in court because POA is founded on a trust relationship.
Once the designated duty is finished, the executor may revoke the POA at any moment. The document loses its validity when the grantor passes away. Additionally, it is forbidden in the UAE to sign an irreversible POA.
Types of Power of Attorney
In Dubai, there are primarily two types of POA:
- General and
- Special
To utilize the proper one, you must understand how these two vary from one another.
General Power of attorney
The authorized agent generally has broad powers under a POA. He or she has the authority to make decisions and take action concerning broad legal and commercial issues involving the principal. Typically, you may utilize it to establish enterprises, acquire real estate, and speak on your behalf to government representatives. However, this document is invalid for selling cars, houses, or stock in firms in the United Arab Emirates.
It does not imply that the agent has complete control despite being generic. They continue to be constrained by the terms of the POA contract.
Special Power of attorney
Special POAs are more detailed. It may be restricted to a specific transaction or for a set period. It gives the agent special authority over a particular area. A Special POA can be created to sell automobiles, homes, or shares in corporations. This kind of POA often provides less risk to the grantor and is sufficient to carry out the necessary activity. If in doubt, go with a specific POA rather than a broad one to be safe.
In any scenario, it is critical to include specifics on the POA duties that need to be completed. If the relevant information is not included in the document, the third party could not accept the POA.
Benefits of a Power of Attorney
A power of attorney can manage various issues, depending on the client’s needs. Among the main benefits are:
- It is the most practical approach to doing specific activities without being physically present in Dubai.
- You get significant time, financial, and discomfort.
How to sign a power of attorney in the United Arab Emirates?
In the UAE, issuing a POA is a simple process. It is usually a good idea to employ legal counsel to avoid any problems. In Dubai, there are several law firms and typing services. The best action is to have a legal firm draft your POA. The Public Notary in the UAE first verifies and validates the document. Then, at the nation of origin of the applicant for a POA, the UAE Embassy confirms it. Several things to keep in mind concerning POA in Dubai are:
- The UAE Embassy or Consulate must receive the paperwork before it may be certified. The document is certified when the UAE Embassy/Consulate completes the first two processes.
- The UAE Ministry of Foreign Affairs (MOFA) is consulted once the paper has been validated. Both the POA paperwork and the three stages mentioned above are verified. The document is now legitimate for usage in the United Arab Emirates.
- A person who does not speak Arabic must have the paperwork created in both Arabic and English. It will enable him or her to comprehend the paper before translating it into Arabic.
- Your POA must be translated into Arabic by a certified legal translator authorized by the UAE Ministry of Justice.
- Before a public notary, the document may be signed in Arabic or bilingual (Arabic and English).
It is essential to consult Notary Public Dubai to avoid misunderstandings caused by linguistic barriers or other fact. Both inside and outside the UAE, Notary Public Dubai may assist clients from all over the world with legalization and attestation. If you have any inquiries or would want to use our services if you are worried about this procedure, please contact us at notary@hhslawyers.com.
Manal Elysyed carries with her an extensive experience of 20 years across a full range of notarial and legalization matters. It is this experience that helps her in delivering the right notary solutions to clients from diversified industries.
