What is a Power of Attorney?
- Posted by: admin
- Categories: All Blog Posts, Power of Attorney
A power of attorney is a legal document that gives one person the authority to act on behalf of another person.
A power of attorney (POA) or power of attorney is a written authorization to handle private affairs, business, or other legal matters on behalf of another person. The person authorizing the other party to act is the principal. Those authorized to act are known as agents or attorneys.
The agent may have broad or limited legal powers to make decisions about the client’s property, finances, or medical care.
Types of Power of Attorney
The power of attorney can be special/ limited, general, or temporary.
Special Power of Attorney
A special power of attorney is a power of attorney limited to a specific behaviour or type of behaviour. It can be used by the principal to give authority to another person to act on the former’s behalf when the principal is not available, is out for travel or simply cannot undergo a certain task.
General Power of Attorney
A general power of attorney is a power of attorney that allows the agent to make all personal and business decisions. For example, the principal can authorize the agent to make business decisions, sign checks apply for projects on their behalf.
Temporary or Limited Power of Attorney
The temporary power of attorney is a limited-time power of attorney. It can be for a short period of time for example a business owner authorizes an agent to carry out all the necessary tasks for 6 months period.
If necessary, if the client is still able to act rationally, the permanent power of attorney can be revoked or changed.
Durable Power of Attorney
A power of attorney may get terminated if the executor or principle is undermined. If this happens, the only way the agent can retain its power is to write on the POA that it is “Durable” and unless revoked by the principal, the name will last for the principal’s life.
Irrevocable Power of Attorney
Irrevocable powers of attorney are rarely used and are mainly limited to specific purposes. However, if the document contains a clause that clearly states that the p principal waives the right of revocation or that the power of attorney is irrevocable, the POA may become irrevocable.
Having a Power of Attorney in UAE
-
For a power of attorney to be used in the UAE, it must be in Arabic or bilingual: Arabic and English and be certified by a legal translation. The grantor can grant a power of attorney to anyone who has reached the legal age and has good mental capacity. However, considering the nature and scope of the power that the agent will have, it is recommended that the grantor only appoint a person whom they fully trust to act as their agent through the instrument.
Why is Power of Attorney Required?
-
There are many reasons for the use of power of attorney. For example, in the court here, the plaintiff or defendant grants a power of attorney to his agent, allowing them to legally represent the client before the court and the authorities.
Similarly, people who do not normally live in the UAE can authorize their spouse or any other person to conduct financial and commercial transactions on their behalf to ensure that there are no obstacles.
Need Assistance with Power of Attorney?
-
At FZ Business Consultancy, we ensure to understand client’s demands and deliver what they require. FZ Business Consultancy is our platform to help customers with typing services, document drafting, attestations and translations.
We at FZ Business Consultancy will assist you in establishing your business in UAE without any unusual costs and constraints. Our consultants with years of experience will make the procedure hassle-free for you. Email us at info@fzconsultancy.com for your queries.
Leave a Reply Cancel reply
Contact us at FZ Business Consultancy FZE office or submit a business inquiry online.