Unified UAE Legislation Database

FAQ:

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Situation 

A company has a branch that shares a bank account with the head office, creating intercompany balances (due to / due from). Auditors have requested confirmations for these transactions. It is unclear who should sign the confirmations — particularly when the General Manager is the only authorized signatory. 

 

Answer

Who should sign the confirmations?

  • The UAE Commercial Companies Law (Federal Decree-Law No. 32/2021) and other applicable regulations do not specify who must sign intercompany confirmations.

  • This is therefore an organizational question, not a legal one: it depends on who holds authority to represent the branch and/or head office on financial documents.

  • That authority is defined by internal authorization documents, such as:

    • Power of Attorney

    • Board Resolution

    • Corporate authorizations issued by the head office

 

If the General Manager is the only authorized signatory and holds a specific document granting such authority — this is sufficient to sign the confirmations.