Power of attorney guidelines for non-Bangladesh nationals
The purpose of this article is to provide a comprehensive overview of the laws pertaining to Power of Attorney in Bangladesh and to outline the key considerations when drafting a Power of Attorney.
Definition:
A power of attorney is a legal document that gives one individual the authority to act on behalf of another. The POA grants a person (the power receiver) the authority to make legal decisions on behalf of the power grantor.
Usages and types:
This document is primarily intended for individuals residing outside of Bangladesh who wish to transact with legally protected assets via an agent or attorney. A foreign power of attorney in Bangladesh functions similarly to a domestic power of attorney in most respects, but must adhere to a distinct set of procedures and protocols.
There are two categories of Power of Attorney, namely General Power of Attorney and Special Power of Attorney.
A general power of attorney grants the agent comprehensive authorizations and virtually unrestricted decision-making authority, from paying taxes to entering contracts, from managing operations to making legal decisions, from settling claims to purchasing a new property, everything.
A Special Power of Attorney is issued for the purpose of establishing special power of attorney to make decisions on a specific matter on behalf of the power giver, such as collecting rent for a specific property or allowing a business partner to use specific assets.
When the power giver relinquishes the ability to revoke it, the Power of Attorney is irrevocable. Irrevocable Power of Attorney refers to those powers of attorney pertaining to the sale, purchase, mortgage, or transfer of immovable property.
A foreigner may select any form of Power of Attorney, depending on the circumstances.
The steps involved in drafting a Power of Attorney are:
During the drafting of a Power of Attorney, it is necessary to adhere to the following terms:
- The nature of power of attorney must be specified in the deed’s title.
- The date of execution must be included in the power of attorney.
- The deed must specify the parties’ identities, including their names, occupations, religions, nationalities, NID/passport numbers, and present and permanent addresses.
- The objective should be expressed with clarity and specificity.
- Powers, responsibilities, and obligations must be described in detail.
- The type of POA document must specify whether general, special, or irrevocable authority is to be granted.
- If the power is contingent, then the conditions must be specified. The deed must include a schedule of the subject property.
- Identification and signatures of two witnesses
- Name, seal, and date of a commissioned officer
- The duration of the POA or its expiration date must be specified.
- Photocopy of a valid Bangladeshi passport or national identification document.
- Two copies of photographs of passport size.
- Attestation must consist of a signature or a thumbprint.
- Non-judicial stamp documents are required.
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Constraints on Power of Attorney:
The Power of Attorney Act stipulated certain restrictions on the use of Power of Attorney. These restrictions include the execution of a will, an adoption certificate, a trust instrument, a gift, a donation, and a heba deed, as well as an adoption-related power of attorney.
Foreign Power of Attorney Execution:
The Power of Attorney Act of 2012 has also made it possible for non-Bangladeshis to execute power of attorney. In order to be legally binding, a power of attorney must be registered under section 52A of the Registration Act of 1908.
The Power of Attorney must be executed and signed in the presence of the proper officer, who, in the case of individuals residing outside Bangladesh, is the concerned officer of the Bangladesh Embassy in that country. The document must be notarized and attested by the Bangladeshi Embassy. The Ministry of Foreign Affairs must verify the documents for counter-verification.
Individuals residing outside of Bangladesh may execute POAs. This Power of Attorney must be executed and signed in the presence of the Bangladesh Consulate or Mission in the country where the individual resides.
Timeline:
Within two months of arrival in Bangladesh, the accomplished power of attorney must be submitted to the Ministry of Foreign Affairs for attestation, and then properly stamped within three months.
If the power of attorney must be registered, it must be submitted within four months of receipt to the appropriate sub-registry office.
In addition to registration at the local Sub-registrar’s office, the District Commissioner of the concerned area must also attest a power of attorney for the sale or purchase of property. If the MoFA has attested that the PoA does not involve land, then the PoA is deemed mature.
Revocation of Power of Attorney:
The power of attorney can be revoked by providing written notice to the authority recipient 30 days in advance. The principal can revoke the power of attorney, or it can be revoked by mutual agreement between the power grantor and the power recipient.
According to section 7 of the 2012 Power of Attorney Act, any act carried out by an agent is deemed to have been carried out by the principal. Any individual or organization is culpable for any work performed using a power of attorney. In actual practice, authorities and certain organizations (such as banks) will sometimes accept a power of attorney on company letterhead (for foreign companies) instead of non-judicial seal paper. A foreign power of attorney is difficult to create. Therefore, it is essential to review all documents with the opinion, counsel, or assistance of an expert.
Reference:
Power of Attorney related legal advice at Tahmidur Rahman Remura Wahid TRW Law Firm
The lawyers, advocates, and barristers at Tahmidur Rahman Remura Wahid in Mohakhali DOHS, Dhaka, Bangladesh, have a great deal of experience handling Power of Attorney-related concerns. It regularly handles a variety of domestic client-related matters and has expertise consulting and supporting several overseas customers throughout their legal difficulties with the utmost care and attention.
Please contact us at the following numbers or email address for questions or legal assistance:
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