Power of Attorney in Bangladesh:
This article will provide a complete guideline on the laws pertaining to Power of Attorney in Bangladesh, specifically explaining the various types of Power of Attorney that can be prepared, the important points to keep in mind while preparing a Power of Attorney, the types of rights that can be granted through a Power of Attorney, the documents required for preparing a Power of Attorney, and so on.
POA (Power of Attorney) What Is the Meaning of Power of Attorney in Bangladesh?
A Power of Attorney is a legal document in which one person legitimately grants another person authorization to perform any act mentioned in the document on his behalf. The POA delegated legal authority to another person (referred to as the power receiver) to make legal decisions on behalf of the power giver.
The power granted by a POA might be broad or limited, depending on the preferences of the power donor. The POA statute also includes a provision for international POA, which allows an applicant living abroad to designate a person or organization from another country to handle his or her property or affairs in Bangladesh.
PRINCIPAL AND ATTORNEY
The Principal is the person who grants the power, and the Attorney is the one who gets the power. The Attorney must be an adult, of sound mind, and legally qualified to execute a contract. Delegation of authority does not revoke the Principal’s authority; he may exercise the same authority as the Attorney.
TYPES OF ATTORNEY POWER
There are two kinds of powers of attorney. Examples include:
- General Power of Attorney
- Special power of Attorney
- IRREVOCABLE ATTORNEY POWER
General Power of Attorney
The general POA gives the power receiver the authority to carry out all lawful acts on behalf of the power giver. A general Power of Attorney offers very broad decision-making authority, such as the ability to draft, sign, and execute any contract, settle a property-related dispute, and so on.
Special power of Attorney
The power receiver is given the authority to carry out a specific legal transaction or make a decision on a specific topic on behalf of the power giver, such as collecting rent for a certain property.
IRREVOCABLE ATTORNEY POWER
An irrevocable POA exists when the authority donor waives his right to revocation. This is accomplished by include a language that expressly specifies that the principal waives the right to revoke or otherwise shows that the authority is irrevocable. In most cases, General POA is declared irrevocable. Irrevocable power of attorney is used to execute an agreement for the sale of immovable property, to mortgage any immovable property against any loan, or to develop land.
DOCUMENTS REQUIRED FOR POA
- A photocopy of a valid Bangladeshi passport or National ID card.
- Two passport-size pictures, duplicated.
- Signature or thumbprint attestation Impression.
- A form for submitting an application.
- Personal information of the power giver and recipient, such as name, parents’ names, date of birth, address, and so on.
- Stamped government nonjudicial form.
- If applicable, the duration of time.
POA DEED PREPARATION
Important considerations when preparing a POA In order to be valid, a power of attorney deed must include the following elements.
In writing: A power of attorney deed cannot be made orally under any circumstances.
The sort of power of attorney must be indicated in the deed’s title.
Date of execution: The execution date must be specified. A deed committed overseas must also be carried out in Bangladesh.
Identity of the parties: The deed must include the parties’ names, occupations, religions, nationalities, NID/passport numbers, and current and permanent addresses.
The power giver’s primary goals
Details of power receiver’s powers, obligations, and duties: The deed must specify the specific, general, or irrevocable power to be granted, as well as the grantee’s power, duties, and responsibilities.
- If the power is conditional, the constraints must be specified.
- The schedule of the property must be mentioned in the deed.
Affidavit: According to the law, every power of attorney deed must include an affidavit.
- If applicable, a monetary description.
- Two witnesses’ names and signatures
- An approved officer’s name, seal, and date of birth
EFFECTIVENESS OF ATTORNEY POWER
When a Power of Attorney is signed, it may become effective immediately. On the other hand, it may take effect at a later date specified in the documents.
AUTHENTICATION OF ATTORNEY POWER
Every instrument purporting to be a power of attorney shall be presumed to have been executed before and authenticated by a Notary public, or any court, judge, Magistrate, Bangladesh council, or vice-consul of the government.
It is necessary to register the deed of irrevocable power of attorney. Deeds executed in Bangladesh must be registered within three months of the date of execution. Authentication is required before registering a power of attorney.
ATTORNEY POWER LIMITATION
The Power of Attorney Act established various restrictions on the power of attorney. Execution of the will, execution of the trust instrument, execution of gift, and execution of power relative to adoption are examples of such constraints.
A JOINT POWER GIVER’S DEATH CONSEQUENCES
In the event of an irrevocable power of attorney, if one of the power givers dies before the power of attorney is activated, the deceased person’s legal heirs will act as his substitute and will execute the power of attorney as before.
If there are numerous joint power receivers, the death of one will not cancel the power of attorney; rather, the remainder of the power receivers can take up the responsibility as before.
REMEDY FOR A GOOD FAITH MONETARY ACT
According to the POA legislation, there is a redressal provision for a third party who acts in good faith in connection to the Power of Attorney. Any individual who acts or makes a payment in good faith without knowing of the power giver’s death, insolvency, or insanity will receive the same remedy as the power giver.
RESOLUTION OF REGISTERED POA DISPUTE
The Power of Attorney Act includes a provision for resolving disputes with registered POA through mediation. If one side does not agree with the other, the other will send a notice to appoint a mediator. They will jointly pick a mediator after receiving notice within 30 days. The decision will be binding on both parties. Furthermore, no one may make an objection to the court in response to this ruling. If the parties are unable to agree on a mediator, anyone might file a lawsuit in court to resolve the disagreement.
WHEN CAN A POWER OF ATTORNEY DEED BE SUSPENDED?
A power of attorney deed may be revoked for any of the following reasons:
- Principal’s passing
- Principal’s insolvency
- Unsoundness of Principal Extinction of Principal’s legal entity
- The end of the time period specified in the deed
- The accomplishment of the deed’s stated purpose
- Destruction of the power of attorney’s concerned subject matter
- Both parties’ consent is required.
- Failure to meet a purpose or condition, or any party incurring losses
- Principal’s revocation of authority
- Attorney’s power surrender
- Performance of particular acts specified in the deed
REVOCATION OF ATTORNEY POWER
A power giver can revoke Power of Attorney by sending a 30-day registered notice to the power receiver. Similarly, a power receiver might abdicate his responsibilities by providing the power donor with 30 days’ recorded notice.
Revocation can be accomplished in two ways, as detailed below:
The principal himself revokes. As an example, prepare a written revocation saying that the power donor is cancelling the power of attorney granted on X date and designating Y as his power receiver.
Revocation is accomplished through mutual agreement between the power donor and power receiver. Revocation of an irrevocable Power of Attorney is only feasible if both parties agree; otherwise, the power receiver must cancel it with the court’s authorization.
DEED OF CANCELLATION OF POWER OF ATTORNEY
If a party illegally performs a power of attorney deed, the other party may launch a suit to cancel the deed.
EXECUTION OF FOREIGN ATTORNEY POWER
A power of attorney and a foreign power of attorney are typically the identical documents, however they are prepared differently depending on the place. In fact, the Power of Attorney Act has made it possible for people living outside of Bangladesh to exercise Power of Attorney. To execute a foreign Power of Attorney, the following actions must be taken:
This Power of Attorney is executed and signed in the presence of the appropriate authority, who is the concerned officer of the Bangladesh mission in that nation in the case of individuals residing outside of Bangladesh.
The signed Power of Attorney will then be sent to Bangladesh.
It must be submitted to the Ministry of Foreign Affairs for attestation within two months of arrival in Bangladesh and officially stamped within three months.
In the case of Power of Attorney registration, it must be filed to the sub-registry office within four months of the date the power of attorney was obtained in Bangladesh.
AT Tahmidur Rahman Remura Wahid, WE PROVIDE LEGAL ADVICE ON POWER OF ATTORNEY.
The Barristers, Advocates, and Lawyers at TRW in Mohakhali, Dhaka, Bangladesh have extensive experience dealing with Power of Attorney concerns. It has expertise consulting and aiding several overseas clients with utmost care and attention throughout their legal challenges, in addition to resolving various matters relating to domestic clients on a regular basis. If you have any questions or need legal advice, please contact us at: E-mail:
GLOBAL OFFICES:
DHAKA: House 410, ROAD 29, Mohakhali DOHS
DUBAI: Rolex Building, L-12 Sheikh Zayed Road
LONDON: 1156, St Giles Avenue, Dagenham
Email Addresses:
info@trfirm.com
info@tahmidur.com
info@tahmidurrahman.com
24/7 Contact Numbers, Even During Holidays:
+8801708000660
+8801847220062
+8801708080817
