Cancelling the Power of Attorney in UAE

What is a POA

A Power of Attorney POA is a legal document or legal authorization that allows one person to grant authority to another individual or individuals to act on his behalf. The authority can be on making a decision on other necessary circumstances. These can be done on both a long-term and a short-term basis. Right to exercise can be from full to restricted, while granting POA.

It depends upon the type of the POA or content of POA. Professional advocates and legal consultants can better guide about this. It is important to note here just Emirati lawyers can appear and represent in Court. Therefore, POA to appear in court cases can only be granted to UAE national lawyers.

A POA is between two persons or more. It can also between companies as well. We have discussed above that, the one who grants the authority is “the Principal”, and the other to whom the authority is granted is Agent. The principal authorize the agent to act and make a decision while he is unavailable. These legal documents are mostly used in the following matters:

• Business Deals and Transactions
• Litigations
• Business Representations
• Family Matters

The law in the UAE that gives a representative the authority to act on the business and personal matters on behalf of the owner also gives the principal the right to cancel or withdraw the authority anytime. Cancelling a POA in the UAE is not just a personal verbal declaration but requires proper legal procedure, official notification, and registration to cancel and make it valid.

Cancelling a Power of Attorney in the UAE requires proper legal procedure and the assistance of a lawyer. If the Power of Attorney is not cancelled properly, the agent to whom you have granted the authority can still act on your behalf and cause issues for you.

Active POA is a constant threat if not cancelled on right time. Principal or Grantor must consult professional lawyers to understand the granting and cancellation of POA process.

The UAE has a structural legal system that prioritizes accuracy and proper procedures in every steps. The procedural accuracy becomes important when one person grants authority to another to act on his behalf.

A Power of Attorney in the UAE is governed by the the Civil Transaction Laws which is Federal UAE Law No.5 of 1985. There are additional procedural regulations set by the Ministry of Justice and local Judicial Authority.

POAs in the UAE are of specific types, like:

• A General one that grants full authority
• Specific POAs that are restricted to a specific task
• Commercial related to businesses
• Property related
• Litigation related

Our legal blogs are available on different type of power of attorneys. POAs are common in the UAE like other parts of the world because these legal documents help allow expatriates, local residents, individuals and business owners to continue their business and commercial activities without physical presence. The negative side of these documents is that their broader power often result in misuse and conflicts.

The cancellation of the POA in the UAE becomes important when trust breaks down or when the purpose of the POA is fulfilled. The individuals have the right to terminate the POA at any time until it is irrevocable or tied to a financial or contract basis.

The POA cannot be cancelled informally. UAE notary public POA cancellation is mandatory. This makes the revocation formal and valid, recognized by the court, government bodies and the third parties. It is the only authorized way to cancel the power of attorneys. Private Service providers can also arrange such services for you, but eventually it has to be cancelled, from Notary Public. Lets’ discuss the procedural steps to cancel the POA in the UAE are highlighted below.

In the first step, the principal is required to visit the Notary Public in their Emirate and demand for the issuance of written cancellation document.  This is legally called:

• Revocation or Cancellation of Power of Attorney
• Cancellation of Mandate

The document must include these details:

• The names of Principal and agent and other required information of the two. Any relevant information must be made the part of it.
• The date of original POA.
• Scope of authority revoked

The individual outside the UAE also has the right to revoke the POA. They can cancel the POA through

• The UAE Embassy attestation
• Ministry of Foreign Affairs legalization
• Local notary registration after return

It is a mandatory legal requirement to notify the agent about the revocation process. The UAE law on this matter states that revocation is not possible until the agent is informed. Notification can be sent through different platforms, which include:

• Legal Notice Via Notary
• E-messages or e-mails on registered contact details
• Court officer notification document delivery

If this step is missed, the agent can continue to act legally even after cancellation because he might claim the absence of any notification regarding the revocation. These are all official mediums and must be used while sending the notification of POA revocation.

If the POA was registered with any authority, like:

• Land Department
• Dubai Court
• RERA
• Commercial authorities

It is necessary to register the POA cancellation with all those relevant authorities. If the POA is related to, real estate and property matters, then the cancellation is must be registered with:

• DLD – Dubai Land Department
• The relevant Municipality of the area, like Dubai Municipality for Dubai

After completing this step, don’t forget to check the status of the POA. The cancellation should be registered officially or updated under your authority. If the update is not made. The agent can still transact your property.

It is a must to notify all the public authorities involved or related to the type of your POA. This can be done by automated updating in the systems. If your POS is related to litigation, then you must lodge the cancellation with the relevant courts of the Emirate and the public prosecutions. This will stop the lawyers from continuing presentations.

• If you feel hesitant in any area or are uncertain about the process, the best recommendation here is to consult a law firm in Dubai and get professional legal expert help in the entire process.

If the POA was issued abroad in any country outside the UAE, it sets some criteria to be legally valid. It should be

• Notarized Abroad
• Legalized by the UAE Embassy
• Attested by the Ministry of Foreign Affairs (MOFA)
• Registered with UAE Notary

If it is legalized under these criteria, then the cancellation becomes important. Its cancellation can be possible by following the same set of legislation, which includes:

• Revocation of a foreign notary
• Embassy attestation & MOFA attestation
• UAE notary registration

A proper revocation of the POS is necessary in the UAE after the completion of the purpose. If proper legal revocation is not made, then the POA can continue to bind the principal and agent, where the agent can make important decisions. The consequences include financial, business, and legal risk where the agent can also misuse the authority.

If the POA is not properly cancelled, the principal will be taken financially liable for the agent’s actions. This can include any type of activity related to unauthorized use of finances. It can be:

• Property transfer
• Bank withdrawals
• Loans
• Business decisions and agreements

This can happen even if the transactions were unauthorized or unapproved. The principal is liable to face legal and financial consequences until the revocation is officially recognized with proper procedure.

The principal can be held responsible for the criminal actions conducted by the agent. This can be related to financial fraud, misuse of authority, criminal matters, abuse of trust, and other criminal offenses.

The positive point here is that the principal will be held responsible for these matters until the revocation is effective. Once the cancellation is approved, the charges will shift over to the agent.

The business-related consequences of an unprovoked POA are abundant and can negatively affect the business owners and investors.

The business can face serious risks. The contracts, agreements, and business deals signed by the agent using an active POA remain legally valid.

If the Principal miss to register the cancellation with the banks, partners, and regulatory authorities, the outcomes are negative. It is necessary to register the POA cancellation and communicate it with the banking authorities and other regulators. The Federal Decree Law No. 32 of 2021 on commercial companies also highlights this point.

A POS irrevocable limit is set in certain situations under the UAE law.

• If it secures financial interest
• If it is related to the sale or transfer of the property
• Serve as a collateral

According to Article 954 of the Civil Transactions Law, an irrevocable POA cannot be cancelled unless one of the following occurs:

• The underlying interest is completed or ends
• Both the principal and agent agree to terminate it
• A court issues an order to cancel it

Courts rarely revoke an irrevocable POA. This only happens when there is clear proof of fraud or coercion. The court can also order the cancellation of the POA if the financial interest related to it has been achieved.

If the agent misuses his authority with the irrevocable POA and commits breaches to the agreement, the principal can take legal action against him. The principal has the right to

• File a civil claim against his agent & file a criminal complaint for his abuse of authority & apply for an urgent court injunction with the help of a professional attorney.

In such a situation, when disputes seem to arise, the court issues the statement prioritizing the protection of financial interest and the prevention of unjust enrichment. The court also orders to maintain the contractual stability and avoid breaches of agreements.