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Ready to use legal template

Drafted by lawyers

Compliant with Malaysian law

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Learn more about Power of Attorney in Malaysia

A Power of Attorney is used to delegate authority to a third party to sign particular documents, or to delegate authority to represent and fulfil obligations on your behalf. A power of attorney is often granted between a Malaysian company and another company or individual. A Power of Attorney is also required in other cases, such as the remote purchase of property by a foreigner or the preparation of tax returns and other administrative requirements. We provide you with an easy to customise Power of Attorney template in word format suitable for any type of power.

Table of contents

What is a Power of Attorney?

A Power of Attorney (POA) is a document that authorizes an individual, agency, or organization to make decisions about the owner’s property on their behalf. The POA will effectively grant the individual limited, or complete, jurisdiction over the aforementioned properties or assets. POA serves as a convenience tool for persons who live outside the nation and require someone they can trust to handle their assets (including properties) locally. This is because it makes no sense for owners to go back and forth on a frequent basis solely to sign paperwork. Remember that people to whom you give the POA do not become the owner of your properties.They are only authorized to administer the properties on your behalf.They cannot inherit or pass on an inheritance, modify an existing will, change a beneficiary, or issue power of attorney to someone else on your behalf.

When to use a Power of Attorney?

The power of attorney can be used for a variety of purposes. The grantor has control over the extent and scope of powers granted to the nominated agent. This document can be used for:

Completing contracts in Malaysia on another's behalf: can be used when the company directors/administrators need to conclude a contract with a customer but are unable to do so in person.
Managing business incorporation processes in Malaysia: can be utilized effectively by entrepreneurs who want to start a company in Malaysia but cannot be present in the country during the complete company formation procedure.
Real estate or financial planning: for those who require someone else to make financial decisions on their behalf; can also be set to take effect if the primary loses mental capacity to handle financial concerns.
Healthcare issues: when the individual needs someone else to make health-related decisions for him or her because he or she no longer has the mental capacity to do so.

What is the relevance of a Power of Attorney?

A POA may authorize a Donee to conduct specific transactions involving real or unreal property without requiring the Donor’s signature or agreement, provided that the activity is completed within the powers specified by the POA. Please keep in mind that a power of attorney is a highly strong legal instrument. Typically, there will be a language in the POA that makes the POA revocable or not.

What are the different types of POA in Malaysia?

There are two types of Power of Attorney in Malaysia as follows:

Revocable POA: The owner may revoke the POA provided to the Donee at any moment without the recipient's approval.
Irrevocable POA: Without the recipient's approval, the owner or anyone else cannot withdraw the POA. An irreversible POA grants the Donee ultimate power that cannot be revoked under any circumstances, even if the owner wishes to alter his/her mind.

How to register a Power of Attorney document?

A Power of Attorney must be registered at the Power of Attorney Registration Office, High Court of Malaysia, Kuala Lumpur, or any other High Court Registration Office in Peninsular Malaysia.It can be registered by either the property owner or the Trustee. It can be registered by the owner or a lawyer by filing the application for registration of the document at the office’s counter. The following materials must be provided with the registration of a POA in Malaysia:

➤ One duplicate of the original POA
➤ One duplicate of the original copy of the owner's
➤ Donee's POA Identification documents (if requested)

Is it possible for the Donor to limit the Donee's powers?

Yes, the Donor may limit the powers provided to the Donee by describing the scope of the authority and any particular constraints that the Donee must obey. The Donor may stipulate the Donee’s obligations, responsibilities, and commitments when working on behalf of the Donor and performing his duties as the Donee.

What is a LPA in Malaysia?

Malaysians are also becoming increasingly worried about their well-being in the event of physical or mental problems. As a result, an increasing number of Malaysians are enquiring about the establishment of a Lasting Power of Attorney (LPA). Malaysia, unlike the United Kingdom and Singapore, does not accept the idea of LPA. In Malaysia, a donor may grant one or more donees a power of attorney (“POA”) to make decisions or carry out instructions on behalf of the donor regarding his or her property and personal affairs.

The power of attorney conferred, however, expires when the donor is deemed to have lost mental ability. This is mentioned in Section 5 of the Malaysian Powers of Attorney Act 1949, which states that a POA validly registered and lodged in the High Court of Malaya is legitimate and stays in force until the donor is proved to be mentally unable, among other things. This contradicts the purpose of establishing a POA in circumstances when the donee is appointed to make choices or carry out the donor’s instructions after the donor has lost ability.

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