POWER OF ATTORNEY (POA)
Power of attorney is a legal or notarized letter that confers authority from one person (the principal) or company by appointing another person like an agent or attorney to act on behalf of the original party on certain matters like finance, real estate, bank account, vehicle, business, and other vital services.
There are two types of POA;
1. General POA
This type of power of attorney Dubai document contains very broad powers for acting general, legal, and business matters. It can generally be used for various functions such as setting up companies, purchase of the real estate, or have you represented before government departments.
2. Special POA
This type of POA allows you to grant specific and limited powers about a subject matter or sale of an item such as the sale of real estate, vehicles, or shares in companies.
This type of POA is advantageous over the general POA due to the special power of granting an agent and so one should always opt for it.
Note that a POA is valid only if signed and registered with a notary public in the UAE. For someone who is currently not in UAE and wishes to sign the power of attorney can still do it provided he signs it as per the legalization process in UAE.
The following steps summarize the legalization process;
This is the first step, the document is signed before a notary public in the country you reside in. the notary public will require to see your identity documents like passports to enable you to sign the POA and for the authenticity of your signatures since they act as a witness.
In case the POA is being signed on behalf of a company, you will need to provide evidence that you have full authorization by the company to act as its signatory.
2. Attestation by Ministry of Foreign Affairs
This process follows after the document is printed, the main purpose being to check the name and practicing a number of a notary public who notarized the document. If the notary public is recognized, it will attest to the document.
3. Certification by the UAE Embassy
The UAE Embassy will only certify the document only if it has undergone through the first two steps completely and correctly.
The UAE Embassy determines whether the document is treated as personal or commercial to apply the correct fee for the certification.
4. Certification by the Ministry of Foreign Affairs in the UAE
Upon presentation of the document to the Ministry of Foreign Affairs, it checks that the document has been notarized, attested, and certified accordingly.
Once all this certification has been obtained, the document becomes legally valid for use in UAE.
Powers of attorney can however be canceled at any time by the executor. The following are some of the reasons that may lead to the cancellation of power of attorney;
a) The need to appoint a new agent
For various personal reasons like lack of trust, or feel that your agent no longer serves you to your best interest or you found a suitable agent who you feel more comfortable sharing your thoughts with, you cancel the existing POA. You however will need to go through the canceling process to make it valid
b) If your agent is never available to attend to you at the time you need him, you can opt to cancel the existing POA.
c) If the current agent has died, as well you will need to choose another agent to serve you.
d) If the present agent is incompetent and thus not qualified for the job.
MEMORANDUMS OF ASSOCIATION (MOAs)
MOAs are important documents for the operation of all companies in the UAE. It is a document that regulates the company’s external activities and is usually drawn upon the formation of the company. Memorandums of association Dubai act as a company’s charter.
A company’s MOA has to contain;
- The company’s name
- State, where the company registered office is located
- Company objectives
- The company’s share capital and its division into shares
- The shareholders’ liability, their roles, and responsibilities in the company
- The company’s first subscribers including their details, names, and addresses
This document is always published and copies were given to the shareholders, creditors, and any involved party so that every person knows the objectives and line which the company will adopt during operation.
It should be kept among the filled documents in the office so that the public consulting can access it.
Why is the importance of memorandum of association?
- It is a requirement for registration of a company before it starts operating
- It acts as a medium through which stakeholders get full information regarding the company
- MOAs acts as a means of attracting investors since through it they get a clear idea of the activity and objectives of the company
- Through it, shareholders can understand their roles and responsibilities as clearly stated in the document.
- MOAs contains the name, address of all important persons associated with the business.