Can you be confident that your loved ones will inherit what’s rightfully theirs and that the wrong people won’t take it? That is why it is so essential to understand what the Power of Attorney (POA) is and how it can be helpful to you!
What Is The Power Of Attorney?
A POA entrusts an individual, an agent, or a company responsible for handling your property on your behalf. A POA will give the individual limited or full authority to decide what to do about the property or asset in question. According to Malaysian law, a POA is a document or instrument that appoints a Donee (the recipient) as an attorney of the Donor (the one granting power); a document that gives specific capabilities to a Donee. Doners may contribute Donees’ general or particular abilities that are either revocable or irrevocable based on their needs and circumstances. They must state an appointed Donee in the POA document. A POA serves as a convenience tool for individuals who reside outside of the country and need someone trusted to manage their properties (and other assets) on their behalf. Often in Malaysia, landowners grant a power of attorney to developers to develop their lands. A POA is also commonly used by the elderly to give specific powers or authority to their younger next of kin so they can take care of any land-related affairs on their behalf.
Using POA In Malaysia
A Power of attorney provides authority for a wide range of purposes. The grantor can choose the extent and scope of the powers he grants to the appointed agent. They can use the document for the following purposes:
- Award of contracts: Company directors or administrators use this to conclude a contract with a client without the client
- Incorporating a company in Malaysia: Use POAs by entrepreneurs who want to start a business in Malaysia but cannot be physically present throughout the whole process.
- Planning for real estate and finance: Powers of attorney can also be for those who require financial assistance; they can also take effect if the principal loses their mental capacity to manage finances.
- Health issues: It comes to light when someone else is required to handle decisions regarding their health after the individual has lost mental capacity.
Revoke the powers of attorney contract if necessary. The legal provisions in the agreement also include a clause that clarifies the consequences for an agent who does not follow instructions.
Can The Donor Limit Powers Given To The Donee?
The Donor can limit the Donee’s powers by specifying what the Donee must follow. Donors may set the obligations, responsibilities, and undertakings of Donees on their behalf and fulfil their duties as Donees.
What You Need To Do To Register For a Power Of Attorney In Malaysia
Do a registration of powers of attorney with one of the High Court registration offices in the area where they created the document. Specifically, either at the High Court of Malaya, Kuala Lumpur, or another high court in Malaya, West Malaysia. Obtaining a power of attorney in Malaysia requires the following documents:
- A power of attorney in original form;
- One pull of attorney copy;
- The Donor’s and the Donee’s identification documents.
Sign one in the presence of a witness. Notaries public are typically involved in closing this document, but a magistrate, a land administrator, an advocate, or a commissioner for oaths may also conclude it.