Why UAE Free Zone Companies Need POA for Managers?
In the past few years, we have been getting many inquiries from companies registered in Free Zones, whose major order is to make sure that their company’s Managers are able to carry on tasks from supervising the regular day-to-day business operations to representing the company before any governmental and semi-governmental authorities.
These are just some of the specific items that cannot be found, if not all, then on most of the Memorandum and Articles of Association (MOA) that majority Free Zone companies have. Free Zones including DMCC, DIFC, DCCA, DWC, SHAMS, JAFZA, DAFZA, etc. normally have their own standard MOA that would, if at all, allow only minimal changes. A typical MOA of Free Zone companies do not contain a paragraph that lists the powers of a General Manager. This might be the charter of a company however it does not empower the Manager to pivotal functions such as opening bank accounts, signing contracts, recruiting staff, registering branches or subsidiaries, appointing lawyers or accountants or sub-delegating powers to an agent – and again these are just some of the essential things that a Manager cannot do if a Power of Attorney from shareholders or Board Resolution is not put in black and white.
To make sure everything is put in place, POA.ae has helped several companies in making sure that their growing business is operating smoothly by way of drafting a legally valid Power of Attorneys or Boards Resolutions, stipulating each and every decision and action that a Manager or the trusted appointed person can and cannot take on, on behalf of the shareholders or the corporations.
A Power of Attorney can also grant the authority to sub-delegate all or some of the enumerated powers to another person, meaning, the Manager who has the current Power of Attorney or a Board Resolution will be able to appoint and empower another Manager or trusted person to carry out the same duties set forth on it. For instance, Manager can designate a tax professional or an authorized accountant as a tax agent through a power of attorney to prepare and file a tax return on the company’s behalf and represent the company before the Federal Tax Authority (FTA).
With this, the requirement of having the shareholder’s personal presence at every transaction whether it be negotiating or signing contracts to hiring and terminating employees will no longer be necessary.
In an era where investors and directors are mostly travelling to expand their trade, as corporate experts, POA.ae was able to mobilize their offices by offering full range of custom-made business POAs and Board Resolutions.
POA.ae is the first dedicated Power of Attorney firm in the United Arab Emirates, run by a law firm. We offer full range of POA and Board Resolutions drafting, translation and representation services. To order your POA today, please place an online order or get in touch with us on +971 55 886 4969 or +971 4 45 58 783 or email at firstname.lastname@example.org.
Disclaimer: The content on this page is for general information purposes only and does not constitute as legal advice nor should it be used as a basis for any specific action or decision. Nothing on this page is to be considered as creating a lawyer-client relationship or as rendering of legal advice for any specific matter. Users of this website are advised to seek specific legal advice by contacting members of POA.ae (or their own legal counsel) regarding any specific legal issues.