The UAE Companies Law defines specific circumstances necessitating the dissolution and liquidation of a company, such as the expiration of its term, mutual agreement among partners, a judicial ruling, or bankruptcy declaration.
In many cases, partners may need to appoint a representative to carry out the dissolution and liquidation process. This is done by granting a Power of Attorney for Liquidation to one of the partners or a third party.
For detailed information about this power of attorney and how to issue it, contact our office. Our legal team, including private notary services, ensures the power of attorney aligns with the partners’ requirements and UAE Companies Law.
What is a Power of Attorney for Liquidation?
A Power of Attorney for Liquidation in the UAE is a legal document executed by one or all partners in favor of an attorney. It authorizes the attorney to handle dissolution procedures, issue necessary resolutions, publish them, and liquidate the company following the provisions of the UAE Companies Law.
This power of attorney is crucial as it saves time and effort for the principal and allows them to leverage the attorney’s legal and financial expertise in handling the dissolution and liquidation processes.
Requirements for a Power of Attorney for Liquidation
- Principal’s Status:
The principal must be a partner in the company and have a vested interest. - Legal Capacity:
The principal must have full legal capacity and not be under any form of legal incapacity. - Specific Authorization:
The power of attorney must explicitly outline the attorney’s responsibilities related to dissolution and liquidation. - Notarization:
The document must be notarized by a public or private notary.
Key Details to Include in a Power of Attorney for Liquidation
The following details must be included in the Power of Attorney for Liquidation:
- Principal’s Information:
For UAE nationals: Emirates ID.
For foreigners: Passport details. - Attorney’s Information:
Similar identification details for the appointed attorney. - Company Information:
- Name, type, address, capital, number of partners, and business purpose.
- These details must align with the company’s Commercial Register records.
- Scope of Authority:
The power of attorney must strictly define the attorney’s authority to handle dissolution and liquidation tasks. - Signatures:
Both the principal and attorney must sign the document after fully understanding its contents.
Authorized Powers Under a Power of Attorney for Liquidation
The powers granted under a Power of Attorney for Liquidation include:
- Executing Dissolution Procedures:
Based on the company type. For example, if it is a simple partnership and there is only one general partner, dissolution occurs upon their withdrawal. - Filing Legal Actions:
Authority to initiate legal proceedings for a court order to dissolve the company. - Handling Single-Shareholder Companies:
In the event of the shareholder’s death, their heirs may authorize an attorney to manage dissolution and liquidation. - Asset Management:
Inventorying the company’s assets, managing outstanding debts, and collecting receivables. - Debt Settlement:
Paying off creditors and managing bank accounts related to the liquidation process. - Legal Representation:
Representing the company in court regarding dissolution and liquidation matters. - Final Deregistration:
Canceling the company’s registration with the Commercial Register after completing liquidation.
Steps to Obtain a Power of Attorney for Liquidation
If you and your partners have agreed to dissolve and liquidate your company and need to appoint a representative, you can rely on our office for assistance. We provide private notary services in compliance with the UAE Notary Public Law.
- Initial Consultation:
Visit our office or contact us remotely to discuss the power of attorney details and the authority to be granted. - Drafting the Power of Attorney:
Our specialized lawyers draft the document according to the principals’ and attorney’s needs while adhering to UAE laws, especially the Companies Law. - Verification of Eligibility:
The private notary ensures all parties (principals and attorneys) meet eligibility requirements, such as being over 21 lunar years old and not under legal incapacity. - Document Submission:
Submit identification documents for the principals and attorneys, including Emirates ID or passport copies for foreigners. - Commercial Register and Resolutions:
Provide a copy of the company’s Commercial Register and any resolutions related to dissolution, whether issued by partners or a court. - Notarization and Certification:
After reviewing the document, the private notary certifies it. The document is then officially recognized following payment of applicable fees.
Frequently Asked Questions
How is the validity period of a Power of Attorney for Liquidation determined?
The duration is set by the partners or the principal authorizing the attorney. It is recommended to align the validity with the estimated liquidation period, typically specified by the partners or the court.
Can the attorney randomly settle debts during liquidation?
No, the Power of Attorney for Liquidation must adhere to UAE Companies Law, which mandates prioritizing preferential creditors before ordinary creditors.
Contact Us for Power of Attorney for Liquidation
We are a licensed office offering private notary services in Dubai. With extensive experience in preparing and notarizing legal documents, we ensure the highest standards of compliance with UAE laws.
If you are looking for reliable legal services to issue a Power of Attorney for Liquidation or certify specialized authorizations, do not hesitate to contact us through our Contact Us page.
Our expertise ensures that the power of attorney is tailored to your needs and is legally sound, providing you with a seamless and efficient service.
Sources:
Abdul Hamid is a legal consultant with extensive experience in providing legal advice in the United Arab Emirates. His expertise focuses on legal drafting, resolving commercial disputes, and drafting and reviewing corporate and employment contracts.