Power of Attorney (PoA) is a formal document that lets one person ask another to do certain things on his or her behalf. It’s not strange that many Non-Resident Bangladeshis use it to do business in Bangladesh. Some of the most popular questions about Bangladeshi law are about the POA.
The Power of Attorney Act of 2012 and the Power of Attorney Rules of 2015 set the rules for how Powers of Attorney can be used, both inside and outside of Bangladesh. Rules set out specific rules, formats, and formal steps for executing a power of attorney outside of Bangladesh. This article will give a brief summary of the most important standards and deadlines for Non-Resident Bangladeshis (NRBs). There are different rules for people who are not from Bangladesh and for businesses.
Where to use Power of Attorney
Most POAs are needed to handle things like land administration, the process of passing on a business, and/or legal cases. POAs can also be used to manage bank accounts, stock and share investments, cash, or any other assets, like jewelry in a safe locker. But POAs can’t be used to carry out a will, a gift, or certain types of trust.
What’s in the POA?
The POA is a very complicated and tightly controlled piece of paper. It might not be useful if it isn’t done and aged the right way. Because of this, it is very important to talk to a lawyer about the powers and limits of the powers given to the attorney so that it can be used correctly.
By writing the powers in a clear and straightforward way, you can make sure they are not open-ended and can’t be abused. If it has to do with a piece of land, the coordinates of the land must be given using the most up-to-date land records. It is also common to include maps or pictures of the plots of land to help the reader understand them better.
If the PoA is about a lawsuit, the facts of the lawsuit, like the case number and the court, need to be included. It’s best to choose someone you can trust and who shows up on time, since the attorney will have to go to court dates as if he or she is the receiver.
Details and Paperwork for Power of Attorney in Bangladesh
Depending on what the PoA is about, we need different papers. For instance, if the POA is about how to run a piece of land,
- Title records (khatians) and deeds (dolil) for the land in question that are up to date and will be the subject of the POA,
- Identification papers (passports, national ID cards) and pictures of the executor and nominated attorney
- the area Sub-registry address and the DC office address.
Even though it’s not written in any rule, only Bangladeshi citizens can carry out POAs outside of Bangladesh. Because of this, the receiver needs to have a Bangladeshi ID. As many NRBs may not have a Bangladeshi passport, it is best for them to apply for one or at least get a No Visa Required (NVR) seal on their foreign papers.
Depending on the Bangladesh High Commission/Consular section/Embassy, applying for and getting an NVR can be done in a single day. One can make an appointment or find out if they can just walk in. One must bring the originals of all papers, enough copies, and loose change. It is best to have a soft copy of the PoA on hand in case officials who will be there need to make changes at the last minute.
After execution
After the PoA is signed, it must be sent to Bangladesh to age. This is how the Ministry of Foreign Affairs (MoFA) in Dhaka verifies the seal of the Bangladesh High Commission/Consular section/Embassy. If the POA is about selling or buying land, the District Commissioner of the area needs to sign it and, more importantly, it needs to be registered at the Sub-Registrar’s office.
If the PoA doesn’t have anything to do with land, it is considered mature after the MoFA attests to it. A PoA needs to be matured within 3 or 4 months of entering Bangladesh. This is why it is very important to start the maturing steps as soon as possible after completion.
Revoking a PoA
There are times when the attorney goes beyond what he or she is allowed to do, and the paper must be revoked. It is a complicated area that needs help from experts. If the Power of Attorney was written correctly, it can be automatically ended or cancelled.
But if that isn’t possible, a letter of revocation can be signed at the Bangladesh High Commission/Consular section/Embassy in a similar way to what was described above. It is very important to keep a copy of the original Power of Attorney so that the correct information can be used in the notice of revocation.
How can we help?
It is important to pay close attention to the POA’s timeline, whether the executor is qualified and has all the right information about the property, the details of the local sub-registry office, the effects of giving the powers, how they mature in Bangladesh, and how they can be revoked.
After talking with the client, we can tell them what they need to do to get ready or find out if their problems can be solved by a PoA. Most of the time, there are better ways to do things.
We can help clients by giving them information on the process, helping them write powers of attorney, and helping with execution in the UK, the US, and other European countries until the contract is ready to be signed in Bangladesh.
For clients outside of the UK, we can walk them through the process and set up a meeting at the High Commission/Consular section/Embassy so that the client can go on their own, knowing what they need to do.
Power of Attorney should be processed in accordance with the laid down rules stated in ‘The Power of Attorney Act-2015’. Please click on the link for ‘The Power of Attorney Act-2015’. The POA executant(s) and executee(s) are strongly advised to read the ‘Power of Attorney Act-2015’ before initiating the process.
Risks Associated with Choosing a Power of Attorney
Even when your child is acting as your agent, you should be aware of the risks of theft and self-dealing that a POA creates. Having your POA require your agent to disclose all actions to a third party on a regular basis, such as the family’s accountant or attorney, will help to reduce the possibility of such malfeasance in addition to the measures previously discussed.
Or, believe but double-check. Your POA can be written by an experienced attorney to provide these protections in accordance with state law.
The POAs you have made should be reviewed and updated as your family’s needs change. A POA can be revoked by merely identifying it in a letter, stating that you renounce it, and giving the letter to your former agent. Some states demand that a letter of this nature be notarized, just like the paperwork itself.
Sending copies to any other parties the agency may have dealt with on your behalf is a smart idea. After that, draft a new POA and provide it to your new preferred agent.
By granting a trustworthy individual the legal ability to act on your behalf and in your best interests, a power of attorney can offer you convenience as well as protection.
The finest agent under your power of attorney may be one of your adult children who is entirely trustworthy and competent to carry out your wishes. However, you shouldn’t appoint someone as the agent just because they are your child. Whoever you choose as your agent, be sure they are capable and trustworthy first.
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.
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