Irrevocable Letter Of Authority for Malaysia

Irrevocable Letter Of Authority Template for Malaysia

A legally binding document under Malaysian law that grants specific, irrevocable powers from one party (grantor) to another (recipient) for particular purposes or transactions. The document is governed by Malaysian legislation, including the Contracts Act 1950 and potentially the Islamic Financial Services Act 2013 where applicable. It creates a binding obligation that cannot be unilaterally revoked, providing security and certainty for significant transactions or ongoing business relationships. The document requires proper execution, witnessing, and stamping under Malaysian law to be legally effective.

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What is a Irrevocable Letter Of Authority?

The Irrevocable Letter of Authority is a critical legal instrument in Malaysian business and financial transactions. It is commonly used when permanent or long-term authority needs to be granted for specific purposes, such as managing financial accounts, handling property matters, or executing business transactions. The document's irrevocable nature provides security and certainty for all parties involved, making it particularly valuable in significant commercial arrangements. Under Malaysian law, these documents must comply with specific legal requirements, including proper execution, witnessing, and stamping. They may also need to align with Shariah principles when used in Islamic banking contexts. The document typically details the scope of authority, duration, and specific powers granted, creating a clear framework for the authorized party to act on behalf of the grantor.

What sections should be included in a Irrevocable Letter Of Authority?

1. Date and Place: Clear statement of when and where the letter is executed

2. Grantor Details: Full legal name, NRIC/passport number, and address of the person granting the authority

3. Recipient Details: Full legal name, NRIC/passport number, and address of the person/entity receiving the authority

4. Purpose Statement: Clear statement of the purpose for which the authority is being granted

5. Scope of Authority: Detailed description of the powers being granted and their extent

6. Irrevocability Declaration: Express statement that the authority granted is irrevocable and the reasons for its irrevocability

7. Duration: Specification of the time period for which the authority is valid

8. Governing Law: Statement that the letter is governed by Malaysian law

9. Execution: Signature block with witness requirements

What sections are optional to include in a Irrevocable Letter Of Authority?

1. Consideration: Required when the authority is granted in exchange for value or consideration

2. Special Instructions: Any specific procedures or requirements for exercising the authority

3. Indemnification: Protection clauses for the recipient when acting under the authority

4. Shariah Compliance: Required when the authority relates to Islamic banking or finance matters

5. Joint Authority: Required when authority is granted to multiple parties

6. Reporting Requirements: Optional section specifying any reporting obligations of the recipient

What schedules should be included in a Irrevocable Letter Of Authority?

1. Schedule of Assets: Detailed list of specific assets covered by the authority

2. Schedule of Powers: Comprehensive list of specific powers being granted

3. Schedule of Accounts: List of bank accounts or financial accounts covered by the authority

4. Schedule of Procedures: Detailed procedures for executing specific powers granted

5. Specimen Signatures: Sample signatures of authorized parties for verification purposes

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Letter of Credit

Cost

Free to use
Relevant Industries

Banking and Financial Services

Real Estate

Corporate Services

Legal Services

Islamic Banking

Investment Management

Property Development

Asset Management

Insurance

International Trade

Relevant Teams

Legal

Compliance

Corporate Secretariat

Finance

Risk Management

Operations

Treasury

Islamic Banking

Corporate Affairs

Business Development

Relevant Roles

Legal Counsel

Corporate Secretary

Compliance Officer

Banking Officer

Property Manager

Investment Manager

Finance Director

Risk Manager

Managing Director

Contract Administrator

Islamic Banking Officer

Company Director

Treasury Manager

Operations Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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