What Is A Power Of Attorney?

A power of attorney is a legal instrument that allows one person to appoint another to act on their behalf in specified matters. It is commonly used for managing property transactions, financial affairs, and personal matters when the donor is unable to act personally. While a power of attorney can be a convenient and effective tool, it must be properly drafted, executed, and used within its legal limits to be valid under Malaysian law. This article explains what a power of attorney is and how it works.

What Is A Power of Attorney (PA)?

It is an instrument used by one person (“Donor”) to empower another (“Donee”) to legally act on his behalf to in doing the things specified in the PA. By virtue of the PA, the Donee now acts as the agent of the Donor.

A PA may be drafted as a stand-alone instrument or it may appear as part of a larger document as is common in loan security documents.

Purpose Of A PA

A PA may be given for a general or specific purpose. A general PA is often drafted in broad terms giving the Donee a wide range of powers to carry out acts on behalf of the Donor in a wide range of scenarios.

A specific PA grants limited power to a Donee to perform a particular act where the scope of the Donee’s power would usually have been determined by the Donor in the PA.

Revocable vs Irrevocable PA

A PA may also be revocable or irrevocable.

A revocable PA may be revoked by the Donor at any time in compliance with the provisions of the Powers of Attorney Act 1949 while a PA expressed to be irrevocable or which is given for valuable consideration cannot be revoked unilaterally without the consent of the Donee.

Preparing A Valid PA

The PA must be drafted and executed in accordance with the Powers of Attorney Act. The PA must be signed by the Donor and authenticated by any of the persons prescribed in the Act.

The signed and authenticated PA must then be stamped pursuant to the Stamp Act 1949 and the requisite stamp duty paid.

Next, the stamped PA is registered at the High Court through the court’s e-filing system. The Registrar of the High Court will seal the PA and endorse it with a registration number.

Revoking A PA

Once a valid power of attorney is given, it remains in full force until it is lawfully revoked. The PA may be revoked by way of a Deed of Revocation which is filed in court.

Conclusion

A power of attorney can be a practical and powerful legal tool when used correctly. Understanding its scope, limitations, and legal requirements under Malaysian law helps ensure it protects your interests and avoids misuse.

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