Enduring Power of Attorney

Duties and liabilities of the attorney(s)

Section 12(2) of the Enduring Powers of Attorney Ordinance (Cap.501 of the Laws of Hong Kong) expresses in clear and plain terms that an attorney under an EPA has the duties:
(a)    to exercise his powers honestly and with due diligence;
(b)     to keep proper accounts and records;
(c)     not to enter into any transaction where a conflict of interest would arise with the donor; and
(d)     not to mix the property of the donor with other property.

The attorney is expected to administer the donor’s assets only for the donor’s benefit. The attorney definitely should not profit from the administration of the donor’s assets, and must avoid situation where his/her interest will conflict with the donor’s. 

Section 11(1) of the Enduring Powers of Attorney Ordinance (Cap.501 of the Laws of Hong Kong) provides as follows:
The court may on the application of an interested party-
(a)     require the attorney under an enduring power to produce records and accounts and make an order for their auditing;
(b)     revoke an enduring power or vary an enduring power; or
(c)     if satisfied that the interests of the donor of an enduring power so require it, remove the attorney.

An attorney’s acts will therefore be under the monitor of an interested party.  While the Enduring Powers of Attorney Ordinance (Cap.501 of the Laws of Hong Kong) does not define who can be qualified as an “interested party”, it is believed that the Court will not hesitate to allow a wide interpretation in cases where a mentally incapacitated person’s interest is involved. Generally speaking, a close relative of the donor is usually defined as an “interested party”.