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Most users ever online was 32 on Fri Mar 08, 2013 10:22 pm

Power of Attorney for sole propriator

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Re: Power of Attorney for sole propriator

Post  Rutaihwa on Mon Apr 08, 2013 5:36 pm

Thanks
I have gone through on the issue of Power Of Attorney and find that during Bid preparation we need to be specify i.e
The written authorization of Bidder: Is a written Power of Attorney Duly Notarized by Commissioner of Oaths or Public Notary for the Bid Concern (Bid Number and Description of the project/assignment) with Inserted name and position held by person signing.


I believe you have gone through all the previous submissions regarding to this topic in the link I provided above. To some extent I am convinced that the submissions have shed the lights and you are ready to go to the next level in relation to your questions.
Jacob wrote
“Usually Power of Attorney is given to one of the trustful staff in the company by company Directors or even one of the director; We have come across with cases where as a director of a company giving Power of Attorney himself/herself while the company is limited; Is this Legally Right? “

To address your question, I will cite two rulings made by the Public Procurement Appeals Authority [PPAA] regarding defective Power of Attorney in the context you have presented.

1. Appeal Case NO. 59 OF 2009 [Mputa Security Services Guards Co. Ltd (1ST APPELLANT) and M/s Full Time Security (T) Ltd (2ND APPELLANT) Vs Institute Of Rural Development Planning – Dodoma (Respondent), PPAA declared that 1st Appellant submitted a defective Power of Attorney as it purported to delegate power from the Appellant’s Managing Director to himself. Such a defect renders a tender to be non- responsive. I quote “Had the evaluation been properly done, the Evaluation Committee would have found that, most of the tenderers, including the 1st Appellant and the Successful tenderer, did not comply fully with the requirements of Clause 27 of the ITT”.

2. Appeal Case No. 123 of 2012 [M/s Tanzania Building Works Ltd (Appellant) vs Muhimbili Orthopedic Institute (Respondent), PPAA held the decision of the PE for rejecting the tender of the appellant for submitting the Power of Attorney signed by the same person purported to be given the authority. PPAA went further to declare the Power of Attorney of the successful bidder defective for the same reason and asserted that his his bid should have been rejected in the preliminary examination.

In these rulings PPAA has maintained the premise that a proper POA should have the person authorizing (principal/grantor/donor) and the one authorized (donee/agent/attorney). In this case for the Limited Liability Companies (LLC) or corporations, the authorization should be derived from the Board of Director’s Resolution. Another salient feature of the POA is the authentication by the Commission of Oaths, notary public, any court judge, judge, magistrate, registrar which is derived from Section 94 of the Evidence Act, Cap 6 – Tanzania. Section 94 of the Act provides that “ A court shall presume that every document purporting to be a power of attorney and to have been executed before and authenticated by a notary public, or commissioner for oaths, any court, judge, magistrate, registrar, foreign service officer or diplomatic representative of a Commonwealth country, was so executed and authenticated”.


Jacob wrote
“What about to Sole Proprietors for this case?”
Jacob, I think there is a dilemma in this aspect. But based on the definitions provided in the link referred above, it will be difficult for a Sole Proprietor to submit POA that gives himself such power. Otherwise, it will amount that donor/principal/grantor and done/agent/attorney is the same person which will be rejected based on the premise has been maintained by PPAA. But I think a Sole Proprietor must submit document(s) to identify him/her as an owner of the business in the tendering process – although for the time being I am not certain which document(s) should be furnished. On the other hand, I am certain that the Sole Proprietor can give a POA to someone else to represent him in contractual matters by issuing POA with features mentioned above.

It is high time now for PPRA to provide guidance on this in order to increase responsive tenders in the tendering process by issuing acceptable formats of POAs for these groups of bidders. [/justify] [/font][/color][/quote]

Rutaihwa

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Re: Power of Attorney for sole propriator

Post  RJM on Sat Mar 16, 2013 12:22 am

Jacob,

I believe you have gone through all the previous submissions regarding to this topic in the link I provided above. To some extent I am convinced that the submissions have shed the lights and you are ready to go to the next level in relation to your questions.
Jacob wrote
“Usually Power of Attorney is given to one of the trustful staff in the company by company Directors or even one of the director; We have come across with cases where as a director of a company giving Power of Attorney himself/herself while the company is limited; Is this Legally Right? “

To address your question, I will cite two rulings made by the Public Procurement Appeals Authority [PPAA] regarding defective Power of Attorney in the context you have presented.

1. Appeal Case NO. 59 OF 2009 [Mputa Security Services Guards Co. Ltd (1ST APPELLANT) and M/s Full Time Security (T) Ltd (2ND APPELLANT) Vs Institute Of Rural Development Planning – Dodoma (Respondent), PPAA declared that 1st Appellant submitted a defective Power of Attorney as it purported to delegate power from the Appellant’s Managing Director to himself. Such a defect renders a tender to be non- responsive. I quote “Had the evaluation been properly done, the Evaluation Committee would have found that, most of the tenderers, including the 1st Appellant and the Successful tenderer, did not comply fully with the requirements of Clause 27 of the ITT”.

2. Appeal Case No. 123 of 2012 [M/s Tanzania Building Works Ltd (Appellant) vs Muhimbili Orthopedic Institute (Respondent), PPAA held the decision of the PE for rejecting the tender of the appellant for submitting the Power of Attorney signed by the same person purported to be given the authority. PPAA went further to declare the Power of Attorney of the successful bidder defective for the same reason and asserted that his his bid should have been rejected in the preliminary examination.

In these rulings PPAA has maintained the premise that a proper POA should have the person authorizing (principal/grantor/donor) and the one authorized (donee/agent/attorney). In this case for the Limited Liability Companies (LLC) or corporations, the authorization should be derived from the Board of Director’s Resolution. Another salient feature of the POA is the authentication by the Commission of Oaths, notary public, any court judge, judge, magistrate, registrar which is derived from Section 94 of the Evidence Act, Cap 6 – Tanzania. Section 94 of the Act provides that “ A court shall presume that every document purporting to be a power of attorney and to have been executed before and authenticated by a notary public, or commissioner for oaths, any court, judge, magistrate, registrar, foreign service officer or diplomatic representative of a Commonwealth country, was so executed and authenticated”.


Jacob wrote
“What about to Sole Proprietors for this case?”
Jacob, I think there is a dilemma in this aspect. But based on the definitions provided in the link referred above, it will be difficult for a Sole Proprietor to submit POA that gives himself such power. Otherwise, it will amount that donor/principal/grantor and done/agent/attorney is the same person which will be rejected based on the premise has been maintained by PPAA. But I think a Sole Proprietor must submit document(s) to identify him/her as an owner of the business in the tendering process – although for the time being I am not certain which document(s) should be furnished. On the other hand, I am certain that the Sole Proprietor can give a POA to someone else to represent him in contractual matters by issuing POA with features mentioned above.

It is high time now for PPRA to provide guidance on this in order to increase responsive tenders in the tendering process by issuing acceptable formats of POAs for these groups of bidders.

RJM

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Re: Power of Attorney for sole propriator

Post  RJM on Fri Mar 15, 2013 2:27 am

Jacob,

The issues of Power Attorney have been discussed in this forum extensively, however, some of the issues you have touched on still need answers.

Follow the following link for the time being: http://ppra.forumotions.net/t181-what-constitute-acceptable-power-of-attorney

I might be back.

RJM

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Power of Attorney for sole propriator

Post  Aumsuri Jacob on Thu Mar 14, 2013 9:24 pm

Dear RJM
Thanx for welcoming me to the forum

Usually Power of Attorney is given to one of the trustfull staff in the company by company Directors or even one of the director; We have come across with cases where as a director of a company giving Power of Attorney himself/herself while the company is limited; Is this Leggaly Right? What about to Sole Propriators for this case?

Aumsuri Jacob

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