A POA or power of attorney in UAE provides authorization or power to another person or entity in making decisions, filing paperwork in your absence, or gathering documents. While it is common for individuals to issue documents such as POAs, your business may also require someone else in acting in the behalf of the business. This practice is common and legal.
Whom Can a Business Authorize for a Power of Attorney?
A business in UAE can issue a POA to any individual or entity it wants. Yes, this includes another business. This is often done for when a business hires an accountant or legal consultant and there is authorization required from the organization in filing documentation or gathering paperwork on the behalf of the business. Prior to the signing of a POA in UAE, there is a need for you to feel very confident on the person or entity that you trust for your business. Consider the power or authorization that the POA provides and do it very meticulously. Do not grant authorization that is unnecessary. Instead, grant powers depending on your specific needs and requirements.
What is the Best Way for the Power of Attorney Legal Drafting?
For legal drafting in UAE, including for a power of attorney, it has to indicate that the business is giving another person or business authority in acting in its stead. The document has to be signed as a representative of the business. Make sure that the power of attorney is issued by the business and not the trade name of the company or a representative of the business. For business es that want only a specific few to have access to certain information, then list the positions and individuals that have the authorization.
Choosing the Right Kind of Power of Attorney in UAE
There is a need to choose the correct kind of POA in UAE to suit your needs. For a general power of attorney, the document offers a business general or broad power in acting in its stead for almost all circumstances. It generally contains a date of expiration or when the document is terminated.
The document is often used when people responsible are leaving town. This allows a business in continuing certain transactions until they return. For a limited UAE POA, it provides a specific duty or itemized responsibilities. A limited power of attorney in UAE doesn’t authorize any additional action.
Can a UAE Power of Attorney for a Company be Revoked?
Most POAs for companies in UAE have expiration dates that are set. If you have to revoke a POA, the company has to be notified in writing. It is also an excellent to send other entities notification that the POA will be revoked, most especially those that are dealing with your company that have received the POA. Of course, the agent to the POA or the person/entity that has been given authorization from the POA your business has created has to be informed and given a notification in writing. The POA has to be drafted, dated, and signed by the principal of the original POA.
What Happens If There isn’t a POA in Place for a Business?
We always get questions like ‘what happens when there’s no POA that has been created by the business?’ This is the typical case which happens when businesses don’t foresee their inability in taking care of transactions of a business themselves. This leaves family members and business parties in an extremely difficult scenario.
As a board member, key employee, or owner of a business, the operating agreement of shareholders by a company may need your input for them to be able to make certain decisions. When you’re unable in making the decisions that are crucial for business operations to continue and there isn’t anyone that is appointed in making the decisions on your stead, then the business partners can be forced in coming to a standstill.
For a personal POA, the result of not having a power of attorney can also be disastrous. Without a power of attorney and you have become unable in attending your own affairs, there’s a legal procedure that has to be gone through in order to appoint a person no acting in your behalf. The process if referred to as guardianship. A guardianship can be hard to secure, most especially in a stressful time. It is also expensive for a family to acquire a judge’s decision just to decide on who to appoint as your agent. These are just some of the reasons why it is imperative to have a power of attorney.
If you want further information regarding UAE power of attorney for businesses, call us here in Notary Public Dubai!