A power of attorney (POA) for a company is a type of legal document that’s made by an organization in order to authorize an individual in the signing of documents and/or carrying out transactions on its behalf. The individual that is authorized is known as the attorney or agent. The power of attorney Dubai UAE of a company will be able to authorize the agent in executing documents that are referred to in an agreed company POA. The documents can be of specific types or any document that is determined by the company in the POA. In this article, we’ll set out key considerations for when you are creating a POA for your company as well as the selection of the attorney of the company.
What’s a POA for a company?
According to UAE legislation, a business has a legal person’s capacity and it can act through the company’s directors. Basically, this means a company will be able to enter into contracts similar to how a person can as well. Company directors can make decisions and sign documents on the company’s behalf. However, when the directors are not able to act on the company’s behalf. The company won’t be able to carry out its activities effectively. POAs for companies involve the directors of a business appointing another person in acting as the agent or attorney. The attorney can have the power in doing things which the POA authorizes him or her to do. It may include signing contracts, executing documents, and carrying out company decisions.
There are a number of questions for you to consider with drafting power of attorney for company in UAE, and they are as follows:
Is there a need for you to create a power of attorney for a company?
One of the most common reasons as to why a company would grant a POA is when a director or a few of them who usually sign important corporate documents on the company’s behalf is/are unavailable. The director, for instance, is on a business trip and would be hard to reach; the business may not be capable of executing legal corporate documents that rely on the signature of the director.
The power of attorney for a company may be important particularly to a startup or small business. In a company that only has a single director, when the director can’t be contacted or loses the ability in signing business documentation, the entire business will be put to a hold as there’s no one to give authorization in signing off cheques and other key documents that affect cash flow.
With a company that has two directors, the local legislation requires two directors as well as the company’s secretary in executing documents. With this, when a director is unavailable or has lost capacity in signing, then the company won’t be able to enter into contracts and carry out important business activities. A POA for a company will be able to solve this particular problem.
Can a business appoint an agent lawfully?
UAE Companies Act grants businesses the legal capacity as well as powers of legal individuals in the country. It is, therefore, legal for a company to authorize or appoint an agent or attorney on terms and conditions that are determined by the business. The agent or attorney may be an individual or another business.
Who should be appointed as the agent of the company?
It is essential for an organization to take proper care and caution in the selection of the person or persons to be appointed as the attorney or attorneys of the company. There is also the need to find out the period in which the agent is appointed, as well as the limits (if any) on the authority that is given. Delegating authority to an individual that doesn’t have the authority without a power of attorney in UAE should be well documented.
Also, it is required of an organization to clearly communicate the limited of the power of attorney to the attorney or agent so that it is clear as to what can and cannot be done. Doing so will minimize the risk for the agent acting outside of the authority that is provided for by the power of attorney in UAE.
Company Power of Attorney in UAE
A power of attorney for a company is an important document from the fact that it allows a business to continue operations even with the absence of company directors. Appointment of an attorney for a company is an undertaking that’s serious, so it is best to carefully consider the attorney or agent and make sure that it is documented properly.
Be First to Comment