Unauthorized Use of a Power of Attorney under Kuwaiti Law
Legal consequences of abusing a power of attorney to exploit another person’s assets
Introduction
A power of attorney (PoA) is a legal document that grants one person the authority to act on behalf of another in financial, legal, or medical matters. However, when a person misuses this power to enrich themselves or harm the interests of the grantor, it becomes a serious offense under Kuwaiti law. This article explains the rules, violations, and penalties associated with unauthorized use of a power of attorney in Kuwait.
What Is a Power of Attorney?
Under Kuwaiti law, a PoA is a notarized instrument that allows the agent (الموكل إليه) to manage specific tasks or categories of action on behalf of the principal (الموكل). These include:
- Managing bank accounts or real estate
- Buying or selling property
- Filing legal documents or appearing in court
- Handling inheritance or medical matters
Agents are expected to act in good faith and within the limits defined in the PoA document.
What Constitutes Unauthorized Use?
Any act that exceeds, violates, or misrepresents the terms of the PoA is considered a misuse. Examples include:
- Selling the principal’s assets for personal gain
- Withdrawing money beyond permitted limits
- Transferring property titles to the agent or their relatives
- Acting after the PoA has expired, been revoked, or the principal has passed away
Relevant Laws and Articles
- Article 240 – Kuwaiti Penal Code: Punishes breach of trust with up to 3 years’ imprisonment or a KD 300 fine
- Article 249: Specifically addresses criminal misuse of a power granted by legal contract or fiduciary relationship
- Sharia Principles: In cases involving family or inheritance, Islamic law also prohibits unauthorized dispossession of assets
Consequences of Misuse
Penalties may include:
- Criminal conviction and imprisonment
- Cancellation of the power of attorney
- Restitution of all misappropriated funds or assets
- Civil damages for harm caused
- Disqualification from holding future legal authority or fiduciary roles
Real-Life Application
In Kuwait, it is common for family members to assign PoAs for convenience. However, courts have ruled against children, siblings, and even spouses who used such documents to unlawfully sell property, transfer inheritance shares, or redirect funds while the grantor was sick or mentally incapacitated.
What to Do If You Suspect Abuse
- Request a certified copy of the PoA to review its terms
- Check bank, land registry, or court records for any unauthorized activity
- File a complaint with the Public Prosecution or initiate a civil lawsuit
- Request precautionary measures (travel ban, asset freeze)
