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.
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.|
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)|
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.
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.