A power of attorney is a legal document that allows a team or a person to act on the behalf of the person appointing the said attorney. The person appointed is called agent or the attorney-in-fact while the person appointed is known as principal or grantor. An agent is someone who has the authority of making important decisions relating to finance, estate and medical care on the behalf of the principal.
An agent can have either broad legal authority or narrow legal authority based on which he manages your assets and financial affairs during your absence or if you are unable to do it due to some illness or accident. An agent given board legal authority has power equal to that of the principal while the person given narrow legal authority has some restrictions and can only take limited actions.
The grantor has power to appoint anyone as long as they are in their right state of mind. If the person loses its mental capability after granting power, the power will no longer be effective. However, if the person desires the document to remain in-effective even if he becomes disabled; the power remains in the hand of the agent. This kind of power is known as a durable power of attorney.
The power of attorney Dubai and other countries has evolved into a useful mechanism in a way that people are appointing skilled and talented experts that can represent them in legal, financial and business areas and make important decisions to help them in achieving their goals aside from playing their role as the power of attorney of the people who are no longer capable of making their own decision.
A power of attorney is very flexible. They are appointed in two cases. One is if the person grants agent permission to look over certain financial deals or other assets while been in power. This helps them take the assistance of the agent in various day to day matters. In the second case, an agent is appointed beforehand but takes the place of the principal if he becomes incapable of handling proceedings’ himself due to certain illness or deterioration of health.
This is necessary to avoid the cease of business proceedings and smooth continuation in the case of crisis while also helping make progressive legal decisions.
You can also get information about the requirements for offshore company formation in Dubai here.