Power of Attorney to Sell Company Vehicle: Steps & Procedures

In the UAE, if a company registers a vehicle in its name, that vehicle becomes a company asset, fully owned by the business. Shareholders cannot own it unless it is sold, transferred, or gifted, following proper legal procedures. This article outlines the necessary steps for issuing a power of attorney to sell company vehicle in the UAE, a process crucial for protecting company assets.

What is a Power of Attorney to Sell Company Vehicle?

A power of attorney to sell company vehicle is a legal document that allows a shareholder or third party to sell a company-owned vehicle on behalf of the company. The company’s assets, including vehicles, must be registered in the company’s name, and they can only be sold through a formal procedure.

If the company’s memorandum of association or bylaws don’t specify the process for delegating such authority, the shareholders can still hold a meeting to approve the sale of a vehicle and appoint a trusted individual to execute the sale.

Why is a Power of Attorney to Sell Company Vehicle Important?

A power of attorney to sell company vehicle ensures that the sale is conducted according to the legal requirements of the UAE, preventing unauthorized transactions. The document protects the company’s interests, safeguarding it from unfair or manipulated sales.

The notarization of this power of attorney, conducted by a licensed notary, provides legal validation and ensures transparency, especially when the vehicle’s ownership is transferred to a buyer.

Uses of Power of Attorney to Sell Company Vehicle

Once a power of attorney to sell company vehicle is issued, the authorized agent can undertake several actions:

• Advertise the vehicle for sale at car dealerships or online platforms.
• Negotiate the sale price with potential buyers.
• Sign the sale agreement with the buyer, either through a car dealership or directly.
• Ensure the contract includes all necessary details such as warranties and conditions.
• Receive payment for the vehicle, either in installments or lump sum.
• Transfer ownership of the vehicle to the buyer at the relevant government authorities.
• Settle any outstanding fees related to the vehicle before handing it over to the new owner.

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Steps to Issue a Power of Attorney to Sell Company Vehicle in UAE

The steps to create a power of attorney to sell company vehicle in the UAE are as follows:

1. Obtain shareholder agreement: The company must first ensure that the required shareholder majority approves the sale and appointment of an agent, as per UAE company law.
2. Determine the required majority: For a partnership, all partners must agree, while for a limited liability company (LLC), the company’s bylaws will dictate the majority required.
3. Issue a decision to appoint an agent to handle the sale of the vehicle.
4. Consult a notary public to create the power of attorney.
5. Confirm the resolution: The company’s management should verify the decision to appoint an agent and present the required documents.
6. Sign the power of attorney: Both the principal (company representative) and the agent sign the document, confirming their roles.
7. Notarization and registration: The notary public validates the document, registering it with the relevant authorities for legal effect.

Required Documents to Issue a Power of Attorney for Selling Company Vehicle

To execute a power of attorney to sell company vehicle, the following documents are necessary:

• Identification documents of the principal and agent (Emirati ID or passport if foreign).
• Company details, including the commercial registration and authorized signatories.
• Vehicle ownership documents such as the vehicle title and registration.
• Company memorandum of association or bylaws, if applicable.

Frequently Asked Questions

When is a company vehicle considered owned by a limited liability company?
A vehicle is only considered company property if transferred to the company’s name. Shareholders cannot include their personal vehicles in the company’s assets unless they transfer ownership properly.

Can a shareholder mortgage the company’s vehicle?
A shareholder cannot mortgage a company vehicle without formal authorization. A power of attorney to sell company vehicle must specify such authority if required for securing a company-related debt.

Contact Us Now to Facilitate the Power of Attorney to Sell Company Vehicle

We are a federally licensed office across the UAE, offering private notary services in Dubai, with years of experience assisting clients in drafting and notarizing legal power of attorney documents.

If you’re looking for the best legal services to handle the power of attorney to sell company vehicle or to notarize Power of Attorney Notarization, don’t hesitate to contact us using the information on our Contact Us page.

In this page, we have covered the procedures for issuing a power of attorney to sell company vehicle, discussed its importance, and the powers granted within it. Our office is committed to drafting and notarizing these documents as a certified private notary office.

Sources:

• UAE Companies Law.