Cap. 31]
(Cap. 159.)
Powers of
attorney given as security.
1971 c. 27, s. 4.
Protection of
donee and third persons where power of
attorney is revoked.
1971 c. 27, s. 5.
Powers of Attorney
[1987 Ed.
(4) This section is without prejudice to any other method of proof authorized by any other Ordinance.
(5) In this section "solicitor" means a person who is enrolled on the roll of solicitors kept under the Legal Practitioners Ordinance and who, at the material time, is not suspended from practice.
4.
(1) Where a power of attorney is expressed to be irrevocable and is given to secure-
(a) a proprietary interest of the donee of the power; or
(b) the performance of an obligation owed to the donee,
then, so long as the donee has that interest or the obligation remains undischarged, the power shall not be revoked-
(i) by the donor without the consent of the donee; or (ii) by the death, incapacity or bankruptcy of the donor or, if the donor is a corporation, by its winding up or dissolution.
(2) A power of attorney given to secure a proprietary interest may be given to the person entitled to the interest and persons deriving title under him to that interest, and those persons shall be duly constituted donees of the power for all purposes of the power but without prejudice to any right to appoint substitutes given by the power.
(3) This section applies to powers of attorney whenever created.
5. (1) A donee of a power of attorney who acts in pursuance of the power at a time when it has been revoked shall not, by reason of the revocation, incur any liability (either to the donor or to any other person) if at that time he did not know that the power had been revoked.
(2) Where a power of attorney has been revoked and a person, without knowledge of the revocation, deals with the donee of the power, the transaction between them shall, in favour of that person, be as valid as if the power had then been in existence.
(3) Where the power is expressed in the instrument creating it to be irrevocable and to be given by way of security then, unless the person dealing with the donee knows that it was not in fact given by way of security, he shall be entitled to assume that the power is incapable of revocation except by the donor acting with the consent of the donee and shall accordingly be treated for the purposes of subsection (2) as having knowledge of the revocation only if he knows that it has been revoked in that manner.
(4) Where the interest of a purchaser depends on whether a transaction between the donee of a power of attorney and another person was valid by virtue of subsection (2), it shall be conclusively presumed in favour of the purchaser that that person did not at the material time know of the revocation of the power if—