Power of Attorney In Bangladesh 2024

This article will provide a complete guideline on the laws related to Power of Attorney in Bangladesh, in particular, will explain the different types of Power of Attorney that can be prepared, the important points to remember while preparing a Power of Attorney, the kind of rights that can be given through a Power of Attorney, the documents required for preparing a Power of Attorney, etc. 

 

Power of Attorney In Bangladesh

 

WHAT IS POWER OF ATTORNEY In Bangladesh?  

        

Power of Attorney (POA) What Is Power Of Attorney In Bangladesh?  Power Of Attorney is a legal document through which any person lawfully confers authority upon any other person to do any act specified in the document on his behalf. The POA gives legal authority to a person (i.e. called power receiver) to make legal decisions on behalf of the power giver.

The power given through a POA can be extensive or limited as per the wishes of the power giver. Under the POA act, there is also an option for foreign POA that enables the applicant living abroad to appoint a person or organization from abroad to manage his/her property or affairs in Bangladesh.

 

 

PRINCIPAL AND ATTORNEY

 

The person who grants the power is known as the Principal, while the person who receives the power is known as the Attorney. The Attorney must be an adult, of sound mind, and not be disqualified to execute a contract as per law.

Delegation of authority does not confiscate the power of the Principal; he may exercise the same power as delegated to the Attorney. 

 

 

TYPES OF POWER OF ATTORNEY

 

Power of attorney can be divided into two types. Such as:

1. General  Power of Attorney
2. Special power of Attorney

 

 

General Power of Attorney

 

General POA empowers the power receiver with the right to carry out all the legal acts on behalf of the power giver. A general Power of Attorney grants very broad powers of decision-making, for example, to make, sign, and execute any contract, settle a property-related dispute, etc.

 

 

Special Power of Attorney

 

Special Power of Attorney empowers the power receiver to carry out a specific legal transaction or to make the decision on a specific matter on behalf of the power giver such as collecting rent for a particular property.

 

 

 

IRREVOCABLE POWER OF ATTORNEY 

 

When the power giver gives up his right to revocation then it is called an irrevocable POA. This is done by adding a provision that specifically states that the principal gives up the right of revocation or otherwise indicates that the power is irrevocable.

Usually, General POA is made irrevocable. Irrevocable POA is used for executing an agreement for the sale of immovable property, mortgaging any immovable property against any loan, or for the development of land. 

 

 

REQUIRED DOCUMENTS FOR POA

     

1. Photocopy of valid Bangladeshi passport or Bangladeshi National ID card.
2. Two copies of passport-size photographs.
3. Attestation by putting signature or thumb Impression.
4. An application form.
5. Personal information of Power giver and power receiver i.e. Name, Parents’ name, Date of Birth, Address, etc.
6.  Government Nonjudicial form with stamps.
7. Time duration, if any.

 

 

PREPARATION OF POA DEED

 

Important points to remember while preparing a POA A deed of power of attorney must contain the following characteristics for it to be valid.

1. In writing: under no circumstances can a deed of power of attorney be made orally.
2. Title: the type of power of attorney must be mentioned in the title of the deed. 
3. Date of execution: the date of execution must be mentioned. A deed executed abroad requires execution in Bangladesh as well.
4. Identity of the parties: the deed must mention the identity of the parties, in particular, their names, occupation, religion, nationality, NID/passport number and their present and permanent addresses.
5. The main purposes of the power giver 
6. Details of powers, responsibilities, and duties of power receiver: the deed must specify the special, general, or irrevocable power to be granted and details of the power, duties, and responsibilities of the grantee.
7. If the power is conditional, then the conditions should be defined
8. Schedule: the deed must mention the schedule of the said property.
9. Affidavit: as per law, it is mandatory to attach an affidavit to every deed of power of attorney.
10. Monetary description, if any.
11. Name and signature of two witnesses
12. Name, seal, and date of an authorized officer

 

 

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 document purporting to be a power of attorney has been executed before and authenticated by a Notary public, or any court, judge, Magistrate, Bangladesh council or vice-consul of the government.

It is a mandatory requirement to register the deed of irrevocable power of attorney. Deeds executed in Bangladesh must be presented for registration within 3 months from the date of execution. Authentication is a pre-requisite for registration of power of attorney.

 

 

LIMITATION OF POWER OF ATTORNEY

 

The Power of Attorney Act specified some limitations of Power of Attorney. Such limitations include execution of the will, execution of trust instrument, execution of gift, and execution of power about adoption.

 

 

DEATH CONSEQUENCES OF A JOINT POWER GIVER

 

In the case of irrevocable power of attorney, if one of the power givers dies before the operation of the power of attorney then the legal heirs of the deceased person will act as his substitute and will execute 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 receivers it will not be revoked by the death of one, rather the rest of the power receivers can take over the responsibility as before.

 

 

REMEDY FOR MONETARY ACT DONE IN GOOD FAITH 

 

As per the provision of the POA act, there is a remedial provision for a third person who does any act in good faith about the Power of Attorney. Any person doing any act or making any payment in good faith without knowing the death, insolvency, or insanity of the power giver will get a remedy from the power receiver as same as the power giver.

 

 

SETTLING DISPUTE OF REGISTERED POA

 

As per the provision of the Power of Attorney Act, there is a dispute-settling provision with registered POA by mediation. If one party disagrees with others, the other party will send a notice to appoint a mediator. After getting notice within 30 days they will appoint a mediator jointly.

The decision will be mandatory for both. In addition, no one can file an objection to the court upon this decision. But if the parties are unable to appoint a mediator, then anyone can file a suit to the court to settle the dispute.

 

 

WHEN A POWER OF ATTORNEY DEED CAN BE TERMINATED?

 

A power of attorney deed may get terminated for the following reasons-

1. Principal’s death
2. Principal’s bankruptcy
3. Unsoundness of Principal
4. Extinction of legal entity of Principal
5. Termination of the period mentioned in the deed
6. The accomplishment of the purpose mentioned in the deed
7. Destruction of the concerned subject matter of the power of attorney
8. Mutual consent of both parties
9. Failure to fulfil a purpose or condition or facing losses by any party 
10. Revocation of power by Principal
11. Surrender of power by Attorney
12. Execution of specific acts mentioned in the deed

 

 

REVOCATION OF POWER OF ATTORNEY 

 

A power giver can revoke Power of Attorney by notifying the power receiver with 30 days’ registered notice. In the same way, a power receiver can renounce his responsibility by notifying the power giver with 30 days’ of registered notice.

Revocation can be done in two ways mentioned below: 

1. Revocation by the principal himself. Such as creating a written revocation stating that the power giver is revoking the power of attorney created on X date naming Y as his power receiver. 
2. Revocation by mutual agreement of the power giver and the power receiver. Only in case of mutual agreement, revocation of irrevocable Power of Attorney is possible, otherwise, the power receiver will have to cancel it with the permission of the court.

 

 

CANCELLATION OF POWER OF ATTORNEY DEED

 

If a party executes a power of attorney deed fraudulently, the other party may file a suit for cancellation of the deed.

 

 

EXECUTION OF FOREIGN POWER OF ATTORNEY

 

A Power of Attorney and a foreign Power of Attorney are usually the same documents but will be prepared differently based on the location. The Power of Attorney Act has created a scope for individuals residing outside of Bangladesh to execute Power of Attorney. The following steps have to be followed for executing a foreign Power of Attorney: 

2. This Power of Attorney is executed and signed in the presence of the appropriate officer, who in the context of individuals residing outside of Bangladesh is the concerned officer of the Bangladesh mission in that country.
3. After that, the signed Power of Attorney will be sent to Bangladesh. 
4. 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. 
5. 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.  

 

 

 

LEGAL ADVICE ON POWER OF ATTORNEY AT CLP

 

The Barristers, Advocates, and lawyers at CLP in Gulshan, Dhaka, Bangladesh are highly experienced in dealing with issues related to Power of Attorney.

In addition to handling various issues related to domestic clients regularly, it also has experience in consulting and assisting numerous international clients with utmost care and attention throughout their legal troubles.  For queries or legal assistance, please reach us at:

E-mail:info@counselslaw.com

Phone: +8801700920980.

+8801947470606.

Address: House 39, Road 126 (3rd Floor) Islam Mansion, Gulshan 1, Dhaka.