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 does 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 traveling to expand their trade, as corporate experts, POA.ae was able to mobilize their offices by offering a full range of custom-made business POAs and Board Resolutions.
This information has been provided by Mirza, CEO of poa.ae