Power of Attorney (PoA)
A Power of Attorney (PoA) is a legally binding document that grants one individual or entity (the "attorney" or "agent") the authority to act on behalf of another (the "principal" or "donor") in specific legal, financial, or personal matters. In the UAE, a properly executed PoA is essential for a wide range of transactions, especially when the principal is unable to be physically present.
Key Features and Legal Requirements in the UAE:
- Notarization is Mandatory: Unlike in some other countries, a PoA in the UAE must be notarized to be legally valid and enforceable. This involves the principal signing the document in the presence of a notary public from the Dubai Courts or a relevant authority. The notary's role is to verify the identity of the signatory and confirm that they are of sound mind and willingly delegating the powers.
- Specificity is Key: UAE law requires that a PoA be precise and clear. A general, all-encompassing PoA may not be accepted by government departments or banks. It must explicitly state the powers being granted. For example, a PoA for selling a property must specify the property's details.
- Types of PoAs:
- General Power of Attorney (GPoA): Grants broad authority to the agent to act on the principal's behalf in various matters. However, it's often not accepted for major transactions like property sales.
- Special Power of Attorney (SPoA): This is the most common type and is tailored for a specific task or a limited set of actions, such as buying or selling a vehicle, managing a bank account, or representing the principal in court.
- Corporate PoA: Issued by a company to an individual (often a manager or a lawyer) to handle business-related matters like company formation, signing contracts, or managing bank accounts.
- Bilingual Requirement: For a PoA to be used in the UAE, it must be in Arabic or a bilingual document with an official legal translation into Arabic.
- PoA from Abroad: If the principal is outside the UAE, the PoA must be notarized in their country of residence and then attested by the Ministry of Foreign Affairs of that country, the UAE Embassy in that country, and finally by the Ministry of Foreign Affairs in the UAE.
- Revocable: A PoA can be revoked or canceled by the principal at any time, as long as they are of sound mind. The cancellation must be done in writing and notarized. The agent and any relevant third parties should be notified.
Common Use Cases:
- Property Transactions: Buying, selling, or leasing real estate in the absence of the owner.
- Corporate Matters: Handling business setup, trade license renewals, or signing business contracts.
- Banking and Finance: Managing bank accounts, withdrawing funds, or applying for loans.
- Legal Representation: Appointing a lawyer to represent the principal in court or other legal proceedings.
- Personal and Family Matters: Delegating tasks like visa application, managing tenancy contracts, or other administrative duties.
