Power of Attorney for foreigners in Bangladesh- Guidelines for Foreign Individuals in Bangladesh
In the intricate landscape of legal transactions, a Power of Attorney (POA) stands as a crucial document that empowers one individual to act on behalf of another. For foreign individuals navigating the legal system in Bangladesh, understanding the nuances of POA is paramount. This comprehensive guideline, crafted by Dewey Leboeuf law firm in Bangladesh, aims to unravel the complexities surrounding the creation, execution, and limitations of Power of Attorney.
Definition of Power of Attorney
A Power of Attorney is a legal instrument that grants authority from one person (the principal or power giver) to another (the agent or power receiver) to act on the principal’s behalf. In the context of Bangladesh, this legal framework becomes particularly important for foreign individuals seeking to manage assets and legal affairs within the country.
Types of Power of Attorney
1. General Power of Attorney:
- Provides broad authorizations, granting the agent extensive decision-making powers.
- Encompasses various actions, from tax payments to entering contracts and managing operations.
2. Special Power of Attorney:
- Issued for specific matters, allowing the agent to make decisions on behalf of the power giver.
- Examples include collecting rent for a property or granting a business partner specific asset-use privileges.
3. Irrevocable Power of Attorney:
- Denotes a situation where the power giver waives the right to revoke it.
- Typically associated with transactions involving immovable properties, such as selling, buying, mortgaging, or transferring.
Foreigners can choose the type of Power of Attorney based on their specific circumstances and the nature of the decisions they wish to authorize.
Procedure for Preparation
The preparation of a Power of Attorney involves adherence to vital terms and detailed documentation. The following key points must be considered:
Type of POA:
- Clearly mention the type of Power of Attorney in the title of the deed.
Date of Execution:
- Specify the date of execution in the power of deed.
Identity of Parties:
- Include comprehensive details of the parties, such as names, occupations, religions, nationalities, NID/passport numbers, and present and permanent addresses.
- Clearly and specifically state the purpose of the Power of Attorney.
Details of Powers:
- Elaborate on the powers, responsibilities, and duties granted to the agent.
Type of POA Deed:
- Clearly specify whether it is a special, general, or irrevocable Power of Attorney.
Conditions (if any):
- If the power is conditional, define the conditions.
- Mention the schedule of the property involved.
- Include the names and signatures of two witnesses.
- Authorized Officer:
- Include the name, seal, and date of an authorized officer.
- Validity or Termination:
- Clearly mention the validity period of the Power of Attorney or the date of termination.
- Include a photocopy of a valid Bangladeshi passport or Bangladeshi National ID card.
- Attach two copies of passport-size photographs.
- Ensure attestation by signature or thumb impression.
- Utilize non-judicial stamp papers.
Limitations of Power of Attorney
The Power of Attorney Act of 2012 delineates certain limitations on the scope of Power of Attorney. These limitations include:
- Execution of the will
- Execution of adoption certificate
- Execution of trust instrument
- Execution of gift, donations, and heba deed
- Execution of power pertaining to adoption
Understanding these limitations is crucial to ensuring that the Power of Attorney aligns with legal regulations.
Execution of Foreign Power of Attorney
The Power of Attorney Act 2012 has provisions for individuals residing outside Bangladesh to execute a Power of Attorney. The following steps must be followed:
- The Power of Attorney must be registered under Section 52A of the Registration Act 1908 to be legally enforceable.
2. Execution and Notarization:
- The document must be executed and signed in the presence of the appropriate officer, usually the concerned officer of the Embassy of Bangladesh in the respective country.
- Notarization and attestation by the Embassy of Bangladesh are mandatory.
- Documents must be verified by the Ministry of Foreign Affairs for counter-verification.
3.Execution in the Presence of Bangladesh Consulate or Mission:
- For individuals residing outside Bangladesh, the Power of Attorney must be executed and signed in the presence of the Bangladesh Consulate or Mission in that country.
4. Submission in Bangladesh:
- The executed Power of Attorney must be submitted to the Ministry of Foreign Affairs in Bangladesh within two months of reaching the country.
- The document must be duly stamped within three months.
5 . Additional Requirements for Land Transactions:
- If the Power of Attorney relates to the selling or buying of land, further attestation by the District Commissioner of the concerned area is required.
- Registration at the local Sub-registrar’s office is necessary.
Revocation of Power of Attorney
A Power of Attorney can be revoked through the following means:
- Notice in Writing:
- The power giver can revoke the Power of Attorney by providing a 30 days’ notice in writing to the power receiver.
2. Mutual Agreement:
- Revocation can also occur through mutual agreement between the power giver and the power receiver.
In conclusion, Section 7 of The Power of Attorney Act 2012 emphasizes that any act performed by an agent is considered to be performed by the principal. Liability for actions conducted through a Power of Attorney rests on both individuals and companies. Real-world practices sometimes see authorities and organizations, such as banks, accepting Power of Attorney on company letterhead (for foreign companies) instead of non-judicial stamp paper.
Creating a foreign Power of Attorney is undoubtedly a complex process, underscoring the necessity of thorough document verification with the assistance of legal experts. Dewey Leboeuf law firm in Bangladesh stands ready to offer expert opinions, advice, and assistance to ensure that foreign individuals navigate the intricacies of Power of Attorney with confidence and compliance.