Power Of Attorney Laws In Bangladesh
The word ‘ Power of Attorney’ Is a very known term in the legal field. In perspective of Bangladesh the term has also a great importance to lease, sell, mortgage of any property. In this article, we take a glance some common issues of Power of Attorney laws in Bangladesh such as: What is Power of Attorney, kinds of Power of Attorney, Important rules for construction of POA. In addition, it includes Required documents of POA agreement, what is Foreign power of attorney, Execution of Foreign POA, Effectiveness and Authentication of POA, limitation of POA. Moreover, we take a glance of Notice serving, Death consequences when POA jointly given, Dispute settling procedure of POA. Furthermore, we have included Remedial provision for monetary act in good faith, what are the main reasons to revoke a Power of Attorney, How to revoke a Power of Attorney etc.
What is Power of Attorney:
Power of Attorney is a legal term which grants authority one person to another to act as one’s legal representative. On the other hand , a Power of Attorney is a legal instrument which empowering a specified person to act for another.. The Power of Attorney gives legal authority to the person called power receiver who empowers to take legal decision for power giver. Sometimes Power of Attorney empowers extensive power or sometimes limited power. Power of Attorney grants for the field of legal affairs, land, business purpose and other private matters.
Kinds of power of attorney:
Power of attorney can be divided into two types. Such as:
- General or Irrevocable power of Attorney
- Special power of Attorney
General Power of Attorney: General Power of Attorney empowers the power receiver with the rights to carry out all the legal acts on behalf of power giver. A general Power of Attorney grants very broad powers of decision making. Such as: To make, sign, execute any contract, settling property related dispute etc.
Irrevocable Power of Attorney: In the case of irrevocable Power of Attorney, the power giver gives up his right to revocation. Irrevocable power of attorney mostly used in extensive purpose. Such as a Power of Attorney given to a land developer against monetary consideration will be treated as irrevocable Power of Attorney.
.Special Power of Attorney: Special Power of Attorney empowers the power receiver to carry out a specific legal transaction or to make decision for a certain matters for the power giver. Such as: borrowing on a mortgage.
Important rules for construction of a power of Attorney:
- Main purposes of power giver.
- Main responsibilities of power
- If the power is conditional, it should be defined, if any.
- Description of movable or immovable property, if any.
- Monetary description, if any.
Required documents for Power of Attorney application:
1 .Valid Bangladeshi passport with passport photocopy or Bangladeshi national ID card.
2.Two copies of recent passport size photographs.
3. Attestation by putting signature or thumb Impression.
4. An application from.
- All the basic information of Power giver and power receiver. Such as: Name, Parents name ,Date of Birth, Address etc.
- Government Non judicial from with stamps.
7. Time duration, if any.
Required documents for Power of Attorney agreement:
Provide the full name of company or individual. Provide the name of residence of power giver and power receiver. Provide the complete business address of power giver and power receiver. Dully authorized signature of power giver and power receiver. Nature of Power of Attorney if it is General. Specific or irrevocable. Description of the immovable property with schedule. Title of the signatory. Date of Power of attorney is a must. The date of foreign Power of Attorney is signed by the witness. Name and sign of two witnesses. An affidavit on behalf of power giver. Time duration, if any. Includes if Power of Attorney given jointly or individually. Description of monetary act, if any. Name, seal and date of authorized officer.
Execution of foreign power of attorney: A Power of Attorney and a foreign Power of Attorney are usually the same documents, but will be filed out differently based on the location. In fact, Power of Attorney act has created a scope for individuals residing outside of Bangladesh to execute Power of Attorney. This Power of Attorney execute and sign in the presence of appropriate officer, which in the context of individuals residing outside of Bangladesh is the concerned officer of Bangladesh mission in that country .After that, the executed Power of Attorney will send to Bangladesh. Within two months of reaching Bangladesh, it must be submitted to the Ministry of Foreign Affairs for its attestation and duly stamped within three months. In cases of registration of Power of Attorney, it shall be submitted to the sub-registry office within four months from the date on which power of attorney was received in Bangladesh. Power of Attorney will register under section 52A of Registration Act.
Who can execute Power of Attorney: A power of Attorney can be executed by a major and sound minded person who can enter into a contract.
Effectiveness of power of Attorney: A Power of Attorney may become effective at the time it is signed. On the other hand, it may become effective at a future date described within the documents.
Authentication of Power of Attorney: The court shall presume that every documents purporting to be a power of attorney, have been executed before and authenticated by Notary public, or any court, judge, Magistrate, Bangladesh council or vice consul of the government was so executed and authenticated.
limitations of Power of Attorney: Power of Attorney Act specified some limitations of Power of Attorney. Such limitations includes execution of will, execution of trust instrument, execution of gift and execution of power pertaining to adoption.
Death consequences of a joint power giver: In the case of irrevocable power of attorney, if one of them died before operation of the power of attorney then the legal heirs of deceased person will substitute there and operate the power of attorney as before.
Death consequences of a joint power receiver: in the case of irrevocable power of attorney, if there are several joint power receiver it will not be revoked by death of one rather the rest of can take over the responsibility as before.
Remedy for monetary act done in good faith: As per the provision of POA act, there is a remedial provision for a third person who does any act in good faith. Any person doing any act or making any payment in good faith without knowing death, insolvency or insanity of power giver will get remedy from power receiver as same as power giver.
Settling Dispute from registered POA: As per provision of power of Attorney Act, there is a dispute settling provision with registered POA by mediation. If one party disagree with others, the other party will send a notice to appoint a mediator. After getting notice within 30 days they will appoint a mediator by jointly. The decision will be mandatory for both. In addition, no one can file objection to the court upon this decision. But if the parties unable to appoint a mediator, then anyone can file a suit to the court for settling the dispute.
Revocation of Power of Attorney: A Power of Attorney is a legal document which can enable a power receiver to do almost anything on behalf of power giver .A power giver can revoke Power of Attorney by notifying power receiver with 30 days registered notice. In the same way, a power receiver can renounce his responsibility by notifying power giver with 30 days registered notice.
Notice serving: As the provision of Power of Attorney Act, there is a provision of serving notice to another, if necessary. However, if the person is not available after quires, the notice will serve his last residence or business place. Notice has to send by registered post or courier service
Key points of revocation of Power of Attorney: Revocation by principal himself. Such as: Creating a written revocation stating that power giver revoking the power of attorney created on X date naming Y as his power receiver. Revocation by mutual agreement of power giver and power receiver. The right under power of attorney is renounced by power giver. By death or become insane or bankruptcy of power giver. The subject matter for which the power receiver was appointed is over.