Power of Attorney: What is it?

For anyone to act on your behalf or receive anything for you – basically act as your ‘agent’- they need to hold an official document authorizing them to do so. This can be for appointing a lawyer, a financial advisor or a real estate broker and so on.

What is a POA?

A power of attorney (POA) is an official document that allows you (a ‘principal’) to assign someone (an ‘agent’) to act on your behalf in relation to your assets, legal decisions or your financial transactions. The agent cannot act on their own and must consider the principal’s interests always. The principal of the POA decides on certain powers they wish to delegate to the agent.

Types of POAs

There are two main types of POAs that are generally used in Oman. These are General POAs and Specific POAs.

General POA:

A general POA assigns a broad range of power to an agent to act on your behalf. These powers can involve handling financial and commercial transactions on your behalf or filing and address claims in the court/arbitration and/or looking after your business interests. This is useful for when you are unavailable in the country or are mentally incapable of handling your own medical/financial affairs.

Please note: a general power of attorney allows the individual it is assigned to, to make any decision on your behalf (not just listed above).

Special/Specific POA:

Unlike a general POA, you can specify the powers you are assigning to the agent who will act on your behalf. For example, a POA to collect official documents on your behalf from an embassy or a bank or a POA for a lawyer to act on your behalf in Case No. XXXX against Party X or for a real estate agent to sell Property Y on your behalf. Here you are only appointing them to conduct certain activities and those activities will be listed in your power of attorney document.

What does the law say about POA?

The Property Registry Act promulgated by Royal Decree 2/98 outlines how an agent may act in relation to property transactions. Article 44 & 45 of the law states that the POA must be specific and precise in relation. This means that a POA for the sales/mortgage/distribution or any transaction in relation to the property should be specified in the POA. On the other hand, a general POA will only permit the agent to complete administrative transactions and not financial transaction.

The Advocacy Law promulgated by Royal Decree 108/96 requires lawyers to present a valid POA when representing clients. You will need a POA for court proceedings, arbitrations, negotiations, mediation etc. This POA grants a lawyer and their firm the power to act on your/you company’s behalf.

Article 43 of the law stated that the POA must identify the limits of the powers that the lawyer/firm will hold. The courts will require to see a copy of a valid POA upon the beginning of the court hearing as well as in execution. If during the time of litigation, the POA expires, it must be renewed and signed again at the notary public so that the lawyer/firm may continue to represent their client.

POA Checklist:

1. Length of the POA
2. The identity of the agent (Company name/ ID number/ who are the employees of the agent who will also represent?)
3. The powers and obligations of the agent
4. The governing law of the POA (Omani Law if drafted in Oman)

How long does a POA last?

POAs once issued must specify the length of which they will be valid from. The Ministry of Justice has stated that all POA are for a period of 2 years or less (as specified in the document). After the 2 years, the party can renew the POA in the same way they did previously or they can choose to appoint a different agent to act on their behalf.

How do you enforce a POA?

Enforcing a POA in Oman:

For a POA to be enforced in Oman it must be in Arabic – if it is in another language, it must be translated and attested by an certified translator before taking it to the notary public at the court for attestation.

The notary public will then require that the parties be identified and will explain the legal effect of the POA to both parties. Identification will be required at the time of signing the POA; if the POA is to be executed on behalf of a company, the Commercial Registration (CR) will need to be presented and the authorized signatory identified in the CR must sign the POA at the notary public.

Enforcing a POA outside of Oman:   

As well as being translated to Arabic, if you wish to execute a POA from outside of Oman it will need to be:

1. Signed at the notary public of that country
2. Stamped and attested at the Oman Embassy present in that country
3. Stamped and attested at the Ministry of Foreign Affairs in that court

Please note: if someone is declared incompetent they cannot appoint at agent to act on their behalf by issuing a POA, they must go through the court, where the judge will appoint a legal guardian who will then handle their affairs such as issuing a POA.

How do you terminate a POA?

POA will be considered terminated upon:

1. Insolvency
2. Death
3. Expiration of the POA term

The POA can be revoked prior to the end of its validity at the notary public by way of a deed, which will then be signed by the authorized person/signatory. The original POA will be attached to the document as well as the CR of the company, identifying who is the authorized signatory, if applicable.

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