A power of attorney is a legal document that grants someone the authority to act on behalf of another. The principal is the person who issues the POA. The agent, sometimes known as the attorney, is the individual who is granted authority.
However, because of the broad scope of its applications, a power of attorney may give rise to several queries and uncertainties. To prevent potential problems in the future, you must be certain of the powers you are giving to an agent or attorney when granting a power of attorney in the UAE. Because of this, you should be aware of what an agent can and cannot do in the UAE with a power of attorney.
What an Agent Can Do With the Help of a Power of Attorney in the UAE
Even though a POA can accomplish a lot of things, you should list the essential functions in your POA document because anything other than the required task could be abused. This is a broad summary of the things that can be done in the United Arab Emirates with the assistance of a power of attorney:
Personal Management
In the UAE, a power of attorney can give your agent the authority to handle bank account activities such as making deposits and withdrawals, paying bills, and so on. The person may also be in charge of managing property-related tasks including buying, collecting rent, upkeep, etc. Additionally, take general care of your investments by managing portfolios, choosing investments, and other personal transactions.
Business Management
Through a company POA, an agent may represent the company when in meetings, signing contracts, and other official capacities. In addition, the agent is capable of managing employees and making daily decisions related to operations. They will also be able to handle sales, purchases, investments, and deal closures pertaining to your business.
Healthcare Affairs
When you are unable to make decisions for yourself, you can designate someone with a power of attorney to make decisions regarding your healthcare. This person will be able to consent to your treatments, choose and consult with doctors, manage medical expenses, and more. They can also take care of several legal processes, such as filing paperwork, getting permits, etc., on your behalf. An agent’s job may include traveling on your behalf if necessary.
However, based on how well you structure your POA, these functions may or may not have constraints. Some of the aforementioned functions can be carried out under a general POA, while others are subject to particular POAs. Legal counsel should be consulted when creating your power of attorney.
What an Agent Cannot Do With the Help of a Power of Attorney in the UAE
It is a well-known truth that agents are only permitted to do particular tasks with specific POAs. However, there are still restrictions even in cases when an agent is granted a broad range of powers under a general POA. Here are a few such limitations in the UAE:
Act Beyond the Scope of the POA
A power of attorney (POA) is only secure if the responsibilities and powers bestowed onto an agent are spelled out in the document. An agent is strictly limited by the powers outlined in the document.
Make Decisions After the Death of the Principal
After a person passes away, no agent may act on their behalf. This is due to the fact that the POA expires or becomes invalid upon the principal’s death.
Modify the POA
Under no circumstances may an agent alter the conditions of the POA or assign the authority they were granted to another individual (unless stated otherwise).
How to Draft a POA?
You must make sure of the following to prevent your POA from being abused or unable to fulfill your jobs:
- Make a thoughtful selection when choosing your agent; look for someone who is dependable, accountable, and able to complete the things you need them to.
- To prevent any issues later on, make sure your POA specifies exactly what authority you are giving the agent as well as when the power of attorney will expire.
- Choose the POA that best suits your requirements; there are numerous options, so a general POA isn’t the best option for every situation! Before writing your power of attorney in the United Arab Emirates, do your homework.
JustPOA can help you draft a UAE POA as per your requirements with ease. We will assist you at every stage of the process, from drafting to registration.
