RESTRICTED 內部文件
For discussion
on 31 March 1987
XCR (87) 55 Copy No.
MEMORANDUM FOR EXECUTIVE COUNCIL
23`
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Powers of Attorney Ordinance (Chapter 31)
POWERS OF ATTORNEY (AMENDMENT) BILL 1987
Introduction
The purpose of this memorandum is to seek Members' advice on a proposed amendment to section 5 of the Powers of Attorney Ordinance. The proposal is embodied in the Bill
annexed.
Background
2
Under section 5 of the Powers of Attorney Ordinance the interest of a purchaser who acquires property through the donee of a power of attorney has been revoked if either the donee or the person dealing with that donee had no knowledge of that revocation. Moreover the section provides that
that if that person makes འ statutory declaration to the effect that he did not know that the power of attorney had been revoked it shall be conclusively presumed that he did not know.
3
In Hong Kong as a matter of routine in transactions involving powers of attorney (approximately 10% of all transactions) a statutory declaration is made. A substantial number of these have
have been made before a solicitor acting either for the donee or the purchaser. Doubt has arisen as to whether these statutory declarations are sufficient.
Proposal
4
The Law Society of Hong Kong has proposed, and the Administration has accepted, that it should be a
a requirement in the future that no such statutory declaration should be sufficient unless
unless taken before an independent solicitor i.e. one who is not acting or has not acted for any of the parties affected by the transaction. It is further proposed that in view of the doubt arising as to existing statutory declarations, and having regard to their number and the possible consequences of not validatng them, express provision should be made to
to declare them valid. The annexed Bill provides. The Law Society is unaware of any litigation existing or pending concerning the sufficiency of
any such statutory declaration.
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