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Where am I now? Lawlink > Law Reform Commission > Publications > Appendix B - Draft Bill To Amend The Conveyancing Act, 1919

Report 18 (1974) - Powers of Attorney

Appendix B - Draft Bill To Amend The Conveyancing Act, 1919

History of this Reference (Digest)

To alter the law relating to powers of attorney and for that purpose to amend the Conveyancing Act, 1919; and for purposes connected therewith.

BE it enacted by the Queen’s Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authority of the same, as follows:-


1. This Act may be cited as the “Conveyancing (Amendment) Act, 1974”.Short title.
 
2. This Act shall commence on 1st January, 1975.Commencement.
 
3. The Conveyancing Act, 1919, is, in this Act, referred to as the Principal Act.Principal Act.
 
4. The Principal Act is amended by omitting from section 2 in the matter relating to Part XVI the figures “163” and by inserting instead the figures “163B”.Amendment of Act No.6, 1919, sec.2.
 
5. The Principal Act is further amended by omitting section 158 and by inserting instead the following section - 158. (1) In this Part-Further amendment of act No.6, 1919, sec.158.
Definition.
“attorney”, in relation to a power of attorney, means an attorney under the power.
“power of attorney” or “power” includes an authorized substitution, delegation, or appointment of sub-attorney.
“principal”, in relation to a power of attorney, means the person giving the power.
(2) This Part shall not enable an attorney irrevocably to appoint a substitute, delegate, or sub-attorney, unless expressly authorized so to do.
(3) This Part shall extend to powers of attorney authorizing, whether expressly or in general terms, the execution of dealings under the Real Property Act, 1900.
 
6. The Principal Act is further amended by omitting section 159 and by inserting instead the following section-Further amendment of Act No.6, 1919.
Sec.159.
Execution under power.
159. (1) An attorney under a power of attorney may -cf. 1971 c.2 of attorney s.7(1).
(a) execute any assurance or instrument with his own signature and, where sealing is required, with his own seal; and
(b) do any other thing in his own name;
by the authority of the principal.
(2) An assurance or instrument executed or thing done in that manner shall be as effectual as if executed or done by the attorney with the signature and seal, or, as the case may be, in the name, of the principal.
 
7. The Principal Act is further amended by omitting section 160 and by inserting instead the following section-Further amendment of Act No.6, 1919. sec.160. Irrevocable powers.
160. (1) Where a power of attorney is, in the instrument creating the power, expressed to be irrevocable and is given, or in the instrument creating the power is expressed to be given, for valuable consideration, then, subject to the terms of the instrument, the power is not revoked nor otherwise terminated by and remains effective notwithstanding-
(a) anything done by the principal without, the concurrence of the attorney;
(b) bankruptcy of the principal;
(c) mental incapacity of the principal;
(d) the principal becoming a patient, a protected person or an incapable person within the meaning of the Mental Health Act, 1958, or any other event happening whereby the property or affairs of the principal become subject to care, management, collection, administration, charge or control under that Act;
(e) death of the principal;
(f) if the principal is a corporation, dissolution of the corporation.
(2) Where the objects of a power of attorney to which this section applies have been carried out, or have become incapable of being carried out, or a power of attorney to which this section applies is otherwise exhausted, the Court may order that the power of attorney terminate and may order that the instrument creating the power be delivered up for cancellation.
(3) This section does not apply to a power of attorney created by an instrument executed before the commencement of the Conveyancing (Amendment) Act, 1974.
 
8. The Principal Act is further amended by omitting sections 161, 162 and 162A and by inserting instead the following sectionsFurther amendment of act No.6, 1919.
secs.161, 162, 162A.
161. (1) Where-Termination: protection of attorney.
(a) an attorney under a power of attorney does an act within the scope of the power; and
(b) at that time the attorney does not have notice that the power had terminated;
he shall be entitled to rely on the power, as against the principal and any other person, notwithstanding any termination of the power before the time of the act, in the same manner and to the same extent as if the power had not terminated before the time of the act.
(2) This section applies only to an act done by an attorney after the commencement of the Conveyancing (Amendment) Act, 1974.
162. (1) Where-Termination: protection of strangers.
(a) an attorney under a power of attorney does an act within the scope of the power, professing to act on behalf of another;
(b) at the time of the act of the attorney or afterwards, a third person-
(i) acts as a purchaser or incurs an obligation or otherwise acts to his detriment in a transaction (with the attorney or with any other person) which depends for its validity or effect on the power not having terminated at the time of the act of the attorney; or
(ii) acts in reliance on a right, title or interest which so depends; and
(c) at the time of the act of the third person he does not have notice that the power had terminated before the time of the act of the attorney;
the third person -and any person claiming under him shall be entitled, as against the principal and the attorney and any other person, to rely on the power, notwithstanding any termination of the power before the time of the act of the attorney, in the same manner and to the same extent as if the power had not terminated before the time of the act of the attorney.
(2) Sub-section (1) shall not entitle an attorney to rely on a power in support of an act within the scope of the power done by him with notice of termination of the power.
(3) This section applies only to an act done by an attorney after the commencement of the Conveyancing (Amendment) Act, 1974.
162A. (1) Where a power of attorney has terminated and an attorney under the power, knowing of the termination, does any act or thing under or in pursuance of the power, he shall be guilty of a misdemeanour.Attorney acting with knowledge of termination of power.
(2) This section applies only to acts or things done after the commencement of the Conveyancing (Amendment) Act, 1974, under a power of attorney whenever given.
 
9. The Principal Act is further amended by omitting from section 163 the words “donee of” wherever occurring and by inserting instead the words “attorney under”.Further amendment of act No.6, 1919, sec.163.
 
10. The Principal Act is further amended by inserting next after section 163 the following new sections-Further amendment of Act No.6, 1919.
163A. (1) Where it is certified in writing for the purposes of this section by the principal or by a person of a prescribed class that a document is a true and complete copy of an instrument creating a power of attorney that document shall be evidence ofProof of powers of attorney.
(a) the execution and the contents of the instrument, as against the principal; and of
(b) the contents of -the instrument, as against any other person.
(2) Subsection (1) does not make a document better evidence than is the instrument of which it purports to be a copy.
(3) This section does not affect any other method of proving the contents of an instrument creating a power of attorney.
(4) A person (otherthan the principal under a power of attorney) who gives a certificate for the purposes of this section in respect of a document purporting to be a copy of a power of attorney and-
(a) is not a person of a class prescribed for the purposes of subsection (1) ; or
(b) is not authorized by the principal to give the certificate;
shall be guilty of a misdemeanour.
(5) A person who gives a certificate for the purposes of this section knowing the certificate to be false shall be guilty of a misdemeanour.
(6) This section applies only to a document certified under subsection (1) after the commencement of the Conveyancing (Amendment) Act, 1974.
163B. (1) Where the instrument creating a power of attorney is expressed to authorize an attorney under the power to do on behalf of the principal any thing that the principal may lawfully authorize an attorney to do (in this section called a general authority), whether or not subject to conditions or limitations expressed in the instrument, the instrument shall have effect in accordance with its terms.General power of attorney.
(2) A general authority may be given by means of an instrument in or to the effect of the form set out in the Seventh Schedule.
 
11. The Principal Act is further amended by omitting Schedule VII and by insertmg instead the following-Further amendment of Act No.6, 1919, Schedule VII.
Sec.163B.
 
SCHEDULE VII
 
General Power of Attorney
 
THIS GENERAL POWER OF ATTORNEY is made on the _____________day of _________ 19____ by AB of ______________ in pursuance of section 163B of the Conveyancing Act, 1919.
 
1. I APPOINT CD of _____________________ to be my attorney.
 
2. 1 AUTHORIZE my attorney, subject to clause 3, to do on my behalf any thing that I may lawfully authorize an attorney to do.
 
3. THE AUTHORITY of my attorney is subject to the following conditions or limitations:-
 
IN WITNESS, etc.
 
12. The omission by this Act of sections 161, 162 and savings 162A of ;the Principal Act does not affect the operation of those sections in relation to a power of attorney created by an instrument executed before the commencement of this Act.
 

 




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