Power of Attorney Under Qatari Law: What Corporate Entities Must Know?

A power of attorney is a formal document by which an individual can represent another individual. It is typically employed when an individual is not in a position to handle his or her matters independently because of some situation, like sickness, travel, or for some other reason. However, granting a power of attorney is a tedious task as it involves a lot of legal implications. It is essential for anyone who wants to grant the power of attorney to another person in Qatar to know the process and requirements for the same.

Legal Basis and Requirements for Power of Attorney in Qatar

Qatar’s Civil Code (Law No. 22 of 2004) provides for the provisions of Power of Attorney. The civil code defines power of attorney as a contract that legally allows a person to authorise another person to act on their behalf in performing a legal act. It also specifies the structure and form required for the document of Power of Attorney.

The Power of Attorney has to be mandatorily in writing and should include the following details:

• Full name, nationality, and address of both the principal and the agent.
• Date and location of the execution of the document
• Clearly defined scope and time limit of the authorisation
• Signature of the principal and the agent, or their duly authorised representatives

Apart from the above, the Power of Attorney document should be notarised and authenticated by the concerned authorities in Qatar, based on the nature and purpose of the authorisation.

Types of Power of Attorney

Qatar has two main types of power of attorney. They are:

• Limited Power of Attorney
• General Power of Attorney

Limited Power of Attorney: This type of attorney grants the agent the power to act on behalf of the principal for a limited matter or period of time.

General Power of Attorney: This type of attorney grants the agent the power to act on behalf of the principal for all matters or for an indefinite period.

Procedure for Granting Power of Attorney in Qatar

The granting of Power of Attorney in Qatar involves the following steps:

Drafting the Power of Attorney document: The Power of Attorney must be in writing and in the form and structure as defined in the Civil Code. It must be drafted in such a way that the scope, duration, rights and obligations of both the parties are clearly mentioned. The parties can draft the document in either Arabic or English or both depending on their preferences.

Notarise: The power of Attorney must be notarised by submitting the principal’s and agent’s original identification documents. The price of notarising will vary depending on the type and complexity of the document.

Attestation: The notarised Power of Attorney must then be attested by the relevant Qatari authorities to ensure its validity and enforceability. The relevant authority depends on the type and nature of the Power of Attorney.

Usage: The agent can then present the attested POA to third parties to act on behalf of the principal within the authorised scope. The agent must always act in good faith and in the best interest of the principal.

Responsibilities and Legal Duties of an Agent Under a Power of Attorney

The agent (attorney-in-fact) in a Power of Attorney (POA) agreement holds significant responsibilities and must operate within strict legal boundaries. Their roles and responsibilities include:

• Act within authorised scope: The agent has to act within the scope of the Power of Attorney document. He cannot exceed or abuse the authority given by the principal.
• Prioritise the principal’s interests: The agent’s decisions or actions should always prioritise the best interests of the principal and avoid conflicts or harmful actions.
• Due diligence: The agent must perform their tasks with utmost care and diligence.
• Maintain transparency: The agent has to keep the principal informed about the tasks performed and the results achieved and should provide the principal the documents upon his request.
• Financial accountability: The agent must maintain detailed and precise records of the principal’s funds or assets and use them solely for authorised purposes.

Failure to meet these above responsibilities and duties by the agent may result in:

• Lawsuits for breach of duty, fraud, or negligence.
• Liability for financial damages caused to the principal or third parties.
• Invalidity of unauthorised transactions, potentially leading to criminal penalties.

Revoking or Ending Power of Attorney in Qatar: Key Steps and Considerations

If you want to revoke or end Power of Attorney in Qatar you can do it in the following ways:

• Mutual Consent: The Power of Attorney can be ended if both the principal and the agent agree to end it. They will have to sign a written document that states their decision and the date of termination.
• Principal’s choice: The principal can choose to revoke the Power of Attorney anytime he wants by informing the agent and the other third parties that are involved in writing or verbally. He does not have to give any reason unless the agreement states otherwise.
• Agent’s choice: The agent can revoke or end Power of Attorney. anytime he wants by informing the principal and the other third parties that are involved in writing or verbally. He does not have to give any reason unless the agreement states otherwise.
• Expiration of specified time: The Power of Attorney that is set for a specific period will end automatically once the specified period is over.
• Completion of purpose: The Power of Attorney will end automatically when the purpose stated in the document has been achieved.
• Death: The Power of Attorney will end automatically if the principal or the agent dies.
• Incapacity: If the principal or the agent becomes mentally incapacitated or unable to act, the Power of Attorney will end.