The Power Of Attorney is a legal document prepared by an individual to nominate one or more people to do a business. The owner picks someone else on their behalf when they cannot look after the working of the business. The person on whose behalf this document is prepared is known as the principal. The person who is appointed on behalf of the principal is known as the attorney.
The person authorized by the PoA is free to make decisions related to that property. These attorneys can make important decisions for the organization related to finances, health, or even both. An enormous deal of power is entrusted to the attorney when the principal hands over the PoA. Hence, it is vital to be very careful while picking an attorney. You can read more on how to appoint an attorney.
More often, family members or close pals are appointed as attorneys. Simply put, a person whom the owner can trust with everything is chosen as the attorney. It is also to be noted here that apart from property, Power of Attorney can also be given for bank accounts, shares, mutual funds, etc.
The principal pays great attention while deciding the attorney, but sometimes things don’t go as planned. No matter how carefully one addresses these issues, the principal may, at times, want to reconsider their decision. In such a scenario, the principal holds the power to take away the PoA or cancel the deed. Let us know more about how a person can cancel a PoA.
How To Revoke The PoA?
There are numerous situations under which the relationship between the principal and agency can be revoked. However, there is no law governing the revocation of these legal documents. Thus, certain principles have been derived from the Indian Contract Act, 1872.
Different courts in India have interpreted these principles to deal with cases concerning PoA. Below mentioned are some of how the PoA can be revoked.
1. By The Principal
The principal has the power to revoke the PoA. He/she can express the revocation of the authority in case the business comes to an end. Alternatively, it can be revoked if either the agent or the principal is proved to be of unsound mind.
However, if the agent shows an interest in the agency, then the PoA cannot be revoked without his consent.
2. Misuse of Power
A PoA generally is an irrevocable document. However, if any mismanagement is recorded on behalf of the agency or the agent breaches the agreement or acts beyond the powers infested in him, the legal documents can be revoked.
How To Cancel The PoA?
There are numerous reasons why the principal may want to cancel it or take away the powers from their agent. When it comes to canceling your PoA, you can either take away the powers completely and decide not to appoint anyone or can also pick someone else to replace the previous attorney.
Following steps will ensure that your current attorney stands canceled. The principal needs to follow a certain procedure to cancel the PoA. Follow the below-mentioned steps to do so:
Draft A Poa Revocation Deed
The owner needs to draft a deed saying they want to revoke the powers from the person to who they gave the attorney. It should also clearly state the purpose of drafting the PoA revocation deed. Also, your cancellation deed should be drafted legally.
After completing this revocation procedure, you should choose to burn all the previous copies to prevent misuse. It confirms that the previous PoA documents no longer stand to be legal.
Also, notify the public about your change of decision by publishing the revocation notice in a local or national newspaper. This will ensure that the people involved in the business become aware of the new changes.
Do Notify Your Current Attorney
After completing the revocation procedure, you should notify your agent about the cancellation of your PoA. As a notification, you will have to send a copy of your revocation document fastened to it. Also, following up with a formal written letter is recommended, reforming the attorney’s authority on your behalf.
If your agent also has a copy of your PoA, you should request them to return them. Ensure that they comprehend and are aware that you have changed your mind, and the present attorneys will not be responsible for any financial or legal matters. The cancellation deed must be registered by the authority which registered the PoA.
Notify all Relevant Parties
When you have decided that you need to cancel your PoA, you should notify all relevant third parties and also your agent. You should also notify real estate agents concerning financial institutions, health care professionals, investment advisers, and all other parties about the cancellation.
There are two different kinds of PoA, Specific and General. One of the common situations, when the principal wishes to cancel the PoA, is that the attorney and authorizer’s relationship no longer exists. Following the procedures are vital to ensure that your attorney is canceled and that the attorney is successfully canceled.
The process of taking PoA from someone is relatively simple. It is just as simple as appointing one. There are no specific formats for drafting a revocation application for your PoA. However, you must ensure to draft the revocation deed only from a legal agency and the same person from whom you framed the transfer deed.
There are a few simple steps and a few things to be kept in mind when you need to get your attorney canceled. After cancellation, the principal can get another attorney-drafted, if the concerned person wishes to. It is assumed that the attorney is a crucial document and binds trust legally between two or more people. The attorney should be competent enough to make significant decisions as and when required. If the attorney is proved to be of unsound mind or insolvent, the attorney stands revoked on its own.