Welcome back to the POA’s desk.
In the last episode we covered the Property Management POA. In this episode we cover the Corporate POA — the document used by companies to authorise individuals to act on the company’s behalf.
A Corporate POA is fundamentally different from a personal POA. In a personal POA, an individual is granting authority to another individual. In a Corporate POA, a legal entity — the company — is granting authority. That changes the documentation requirements, the authorisation chain, and the way the POA is verified.
For a company to issue a POA, the authorised signatory must sign on behalf of the company. The authorised signatory is named on the trade licence or in the company’s Memorandum of Association. If the company has multiple authorised signatories, they may need to sign jointly depending on the company’s articles. A POA signed by someone who is not authorised to bind the company will be rejected.
The supporting documents required are more extensive than a personal POA. The company’s trade licence, current and valid. The Memorandum of Association or company contract showing the authorised signatories. A board resolution authorising the issuance of the POA, if required by the company’s structure. The authorised signatory’s identification. And any free zone or mainland authority documents specific to the company’s regulatory body.
The Corporate POA itself must specify the company in detail. Full legal name as it appears on the trade licence. Trade licence number. Registered address. The authorising body or signatory. The attorney must be named with full identification. And the powers must be precisely specified.
Common powers in a Corporate POA include signing contracts on behalf of the company, opening or operating bank accounts, dealing with government authorities, hiring and terminating staff, representing the company in specific transactions, attending official meetings, collecting and depositing funds, and signing tax or regulatory filings.
The scope question matters more for corporate than for personal POAs. A broad Corporate POA gives the attorney wide latitude, which is convenient but risky. A narrow Corporate POA limits the attorney to specific actions, which is safer but may need updating as new needs arise. We usually recommend a clearly scoped POA tied to specific transactions or specific functions, with a stated validity period and a clear revocation mechanism.
Some industries have specific requirements. Financial services companies face additional scrutiny on who can sign on their behalf. Real estate brokerages have RERA-specific authorisation requirements. Free zone companies have authorisation rules set by the free zone authority. Mainland companies dealing with the DED have their own requirements. The Corporate POA must be drafted with the relevant regulator in mind, not just generic corporate language.
A common mistake we see. Companies give a Corporate POA to a senior employee thinking it will cover everything the employee does. It often doesn’t. If the employee needs to sign a property purchase, the POA must specifically authorise property transactions. If the employee needs to operate a bank account, the POA must specifically authorise bank operations. Generic “to act on behalf of the company” language is often rejected by the specific authority where the action is needed.
Another common mistake. Companies issue a Corporate POA without updating it when the trade licence is renewed or when authorised signatories change. An expired trade licence at the time of POA use makes the document unenforceable. The authorisation chain must be current at every step.
The Corporate POA at POAS is fixed at AED 2,199. The fee includes verification of the company documents, drafting tailored to the company’s specific powers and the regulator involved, bilingual preparation, notarisation through the appropriate channel, and digital delivery. We confirm the authorised signatory chain before drafting, so you do not pay for a document that cannot be validly executed.
In Episode 11 we cover the Bank Account POA. The document for authorising someone to operate your UAE bank accounts.
I’m Patrick. Thanks for joining me at the POA’s desk.