Legal Profession (Amendment) Bill

Bill No. 6/1979

Read the first time on 5th March 1979.
An Act to amend the Legal Profession Act (Chapter 217 of the Revised Edition).
Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows: —
Short title and commencement
1.  This Act may be cited as the Legal Profession (Amendment) Act, 1979, and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.
Amendment of section 2
2.  Section 2 of the Legal Profession Act (hereinafter in this Act referred to as the principal Act) is amended —
(a)by deleting the words “committee appointed by the Council” in the definition of “Inquiry Committee” and substituting therefor the words “Committee appointed by the Chief Justice”;
(b)by inserting, immediately after the words “University of Malaya” in paragraph (a) of the definition of “qualified person”, the words “in Singapore”; and
(c)by deleting the full-stop at the end of the definition of “Society” and substituting therefor a semi-colon and by inserting immediately thereafter the following definition: —
“ “trust” or “trustee” extend to implied and constructive trusts and to cases where the trustee has a beneficial interest in the trust property and to the duties incident to the office of a personal representative, and “trustee”, where the context admits, includes a personal representative.”.
Amendment of section 10
3.  Section 10 of the principal Act is amended by renumbering the section as subsection (1) and by inserting immediately thereafter the following subsection: —
(2)  Notwithstanding the provisions of paragraphs (d) and (e) of subsection (1) of this section, the Board may, in its discretion, exempt a qualified person from attending such courses of instruction and passing such examinations as may be prescribed by it if the Board is of the opinion that such qualified person is, by reason of his experience or for other cause, a fit and proper person to be so exempted.”.
Amendment of section 11
4.  Subsection (3) of section 11 of the principal Act is amended by inserting, immediately after the word “section” at the end thereof, the words “unless exempted therefrom under the provisions of subsection (2) of section 10 of this Act”.
Amendment of section 14
5.  Paragraph (d) of subsection (4) of section 14 of the principal Act is amended by deleting the words “attended the courses of instruction and passed the examinations” in the third, fourth and fifth lines thereof and substituting therefor the words “has attended the courses of instruction (or has been exempted therefrom under the provisions of subsection (2) of section 10 of this Act) and has passed any examinations that may be”.
Amendment of section 30
6.  Section 30 of the principal Act is amended —
(a)by deleting the full-stop at the end of paragraph (c) of subsection (1) thereof and substituting therefor a semi-colon and the word “or” and by inserting immediately thereafter the following paragraphs: —
(d)if he is an undischarged bankrupt or a receiving order in bankruptcy is in force against him; or
(e)if he has entered into a composition with his creditors or a deed of arrangement for the benefit of his creditors; or
(f)if he has one or more outstanding judgments against him amounting in the aggregate to one hundred thousand dollars or more which he has been unable to satisfy within six months from the date of the earliest judgment.”; and
(b)by deleting the words “the Housing and Development Board, the Public Utilities Board, the Economic Development Board, the Jurong Town Corporation or the Port of Singapore Authority” in the second, third, fourth and fifth lines of subsection (2) thereof and substituting therefor the words “any statutory board or authority”.
Repeal and re-enactment of section 50
7.  Section 50 of the principal Act is repealed and the following substituted therefor: —
Statutory members
50.—(1)  The following persons shall be statutory members of the Council each time it is constituted: —
(a)not more than three advocates and solicitors nominated by the Minister to sit on the Council; and
(b)the immediate past President of the Society.
(2)  Every member of the Council nominated by the Minister under paragraph (a) of subsection (1) of this section shall hold office for a term of two years but may, from time to time, be re-nominated.”.
Repeal and re-enactment of section 51
8.  Section 51 of the principal Act is repealed and the following substituted therefor: —
Elected members
51.—(1)  There shall be fifteen elected members of the Council consisting of —
(a)six practitioner members, each of whom shall be an advocate and solicitor of not less than twelve years’ standing on the day of his nomination for election to the Council;
(b)five practitioner members, each of whom shall be an advocate and solicitor of under twelve years’ but not less than seven years’ standing on the day of his nomination for election to the Council; and
(c)four practitioner members, each of whom shall be an advocate and solicitor of under seven years’ standing on the day of his nomination for election to the Council.
(2)  Subject to the provisions of this Act, every elected member of the Council shall hold office as a member of the Council for two years.
(3)  Whenever it is necessary for any reason whatsoever to elect all the elected members of the Council at an annual election —
(a)three members specified in paragraph (a);
(b)two members specified in paragraph (b); and
(c)two members specified in paragraph (c),
of subsection (1) of this section chosen by lot at the first meeting of the Council after such election shall hold office for only one year.
(4)  Every elected member of the Council shall be eligible for re-election if he is qualified to be a candidate.”.
Repeal and re-enactment of section 52
9.  Section 52 of the principal Act is repealed and the following substituted therefor: —
Compulsory voting
52.—(1)  Every advocate and solicitor who has in force a practising certificate on the date of nomination as provided in section 53 of this Act shall vote for the election of the members of the Council as follows: —
(a)if he is an advocate and solicitor of not less than twelve years’ standing, he shall vote for the election of the members of the Council under paragraph (a) of subsection (1) of section 51 of this Act;
(b)if he is an advocate and solicitor of under twelve years’ but not less than seven years’ standing, he shall vote for the election of the members of the Council under paragraph (b) of that subsection; and
(c)if he is an advocate and solicitor of under seven years’ standing, he shall vote for the election of the members of the Council under paragraph (c) of that subsection.
(2)  Every advocate and solicitor who is required to vote for the election of the members of the Council in accordance with subsection (1) of this section and who fails to do so shall not be entitled to apply for a practising certificate unless he satisfies the Registrar that he had a good and sufficient reason for not voting at the last election to the Council or unless he pays a penalty of five hundred dollars which shall be credited to the Compensation Fund established under section 76 of this Act.”.
Amendment of section 59
10.  Section 59 of the principal Act is amended —
(a)by deleting paragraphs (b) and (c) of subsection (1) thereof and substituting therefor the following: —
(b)he becomes of unsound mind;
(c)he is an undischarged bankrupt or a receiving order in bankruptcy is in force against him;
(d)he has entered into a composition with his creditors or a deed of arrangement for the benefit of his creditors; or
(e)he has one or more outstanding judgments against him amounting in the aggregate to one hundred thousand dollars or more which he has been unable to satisfy within six months from the date of the earliest judgment.”;
(b)by deleting the words “paragraphs (a), (b) and (c) of” in the second line of subsection (2) thereof;
(c)by deleting the words “paragraph (a) or (b) of” in the first line of paragraph (a) of subsection (2) thereof; and
(d)by deleting the words “paragraph (a) or (b) of” in the fourth line of subsection (3) thereof.
Amendment of section 74
11.  Section 74 of the principal Act is amended by deleting subsection (5) thereof.
New section 75A
12.  The principal Act is amended by inserting, immediately after section 75 thereof, the following section: —
Intervention in solicitor’s practice
75A.  The powers conferred by Part II of the Schedule to this Act shall be exercisable in the circumstances specified in Part I of the Schedule.”.
Amendment of section 76
13.  Subsection (2) of section 76 of the principal Act is amended by deleting the word “one” in the third line thereof and substituting therefor the word “two”.
Repeal and re-enactment of section 85
14.  Section 85 of the principal Act is repealed and the following substituted therefor: —
Appointment of Inquiry Committee
85.—(1)  There shall be a Committee to be known as the Inquiry Committee, which shall consist of not less than five nor more than nine advocates and solicitors (whether in practice or not) to be appointed by the Chief Justice.
(2)  An advocate and solicitor shall be eligible to be appointed as a member of the Inquiry Committee if he has not less than twelve years’ standing.
(3)  A member of the Inquiry Committee shall be appointed for a term of three years and shall be eligible for re-appointment.
(4)  Three members of the Inquiry Committee shall constitute a quorum.
(5)  The Chief Justice may at any time remove from office any member of the Inquiry Committee or fill any vacancy in its membership.
(6)  The Inquiry Committee may act notwithstanding any vacancy in its membership provided that there is a quorum; and no act done by or under the authority of the Inquiry Committee shall be invalid in consequence of any defect that is subsequently discovered in the appointment or qualification of the members or any of them.
(7)  The Inquiry Committee shall meet from time to time for the despatch of business and, subject to the provisions of this Act, may regulate its own procedure and the appointment of a chairman and the mode of deciding questions before the Committee.”.
Amendment of section 86
15.  Section 86 of the principal Act is amended —
(a)by deleting the words “proceeding to inquire into or investigating” in the first line of subsection (4) thereof and substituting therefor the word “inquiring”; and
(b)by inserting, immediately after subsection (4) thereof, the following subsection: —
(5)  Notwithstanding the provisions of this section, whenever an advocate and solicitor has been convicted of the offence of criminal breach of trust punishable under section 409 of the Penal Code (Cap. 103) or of any offence involving fraud or dishonesty, the Council shall forthwith apply to the Chief Justice to appoint a Disciplinary Committee which shall hear and investigate the matter.”.
Amendment of section 87
16.  Section 87 of the principal Act is amended —
(a)by deleting the words “inquire into and investigate the matter and report to the Council on the matter” at the end of subsection (1) thereof and substituting therefor the following: —
within two weeks commence its inquiry into the matter and report its findings to the Council as expeditiously as may be reasonably expected of it but in any event not later than two months after the commencement of such inquiry”;
(b)by deleting the word “investigation” wherever it appears in subsections (3) and (4) thereof and substituting therefor in each case the word “inquiry”;
(c)by deleting the words “Before any inquiry or investigation begins” in the first line of subsection (5) thereof and substituting therefor the words “Before the Inquiry Committee commences its hearing”;
(d)by deleting the words “setting out any or any further particulars that may be necessary to disclose the reason for the inquiry or investigation and” in the first to the fourth lines of paragraph (a)(ii) of subsection (5) thereof;
(e)by deleting subsection (6) thereof and substituting therefor the following: —
(6)  The report of the Inquiry Committee shall, inter alia, deal with the question of the necessity or otherwise of a formal investigation by a Disciplinary Committee and, if in the view of the Inquiry Committee no formal investigation by a Disciplinary Committee is required, the Inquiry Committee shall recommend to the Council —
(a)a penalty sufficient and appropriate to the misconduct committed; or
(b)the dismissal of the complaint.”; and
(f)by deleting the marginal note thereto and substituting therefor the word “Inquiry.”.
Amendment of section 88
17.  Section 88 of the principal Act is amended —
(a)by inserting, immediately after the word “shall” in the third line of subsection (1) thereof, the words “, within one month of the receipt of the report,”; and
(b)by inserting, immediately after subsection (1) thereof, the following subsection: —
(1A)  If the Inquiry Committee in its report recommends —
(a)that there should be a formal investigation, then the Council shall determine accordingly under subsection (1) of this section; or
(b)that a formal investigation by a Disciplinary Committee is not necessary, the Council may, if it disagrees with the recommendation, request the Chief Justice to appoint a Disciplinary Committee.”.
Amendment of section 89
18.  Subsection (1) of section 89 of the principal Act is amended by deleting the words “two hundred and fifty dollars” at the end thereof and substituting therefor the words “five thousand dollars”.
Amendment of section 120
19.  Subsection (1) of section 120 of the principal Act is amended by deleting the words “six months” in the fifth line thereof and substituting therefor the words “one year”.
Amendment of section 122
20.  Section 122 of the principal Act is amended —
(a)by deleting the words “six months” in the first line of subsection (1) thereof and substituting therefor the words “one year”;
(b)by deleting the word “delivery” in the second line of subsection (2) thereof and substituting therefor the word “payment”; and
(c)by inserting, immediately after subsection (2) thereof, the following subsection: —
(3)  Section 120 of this Act and this section, as amended by the Legal Profession (Amendment) Act, 1979, shall apply to any bill of costs delivered before the commencement of that Act as it applies to any such bill delivered after the commencement of that Act.”.
New section 143
21.  The principal Act is amended by inserting, immediately after section 142 thereof, the following section: —
Cessation of office of Council members on 31st December, 1979
143.  Notwithstanding anything to the contrary in this Act, all the members of the Council holding office at the commencement of the Legal Profession (Amendment) Act, 1979, shall cease to hold office on the 31st day of December 1979.”.
New Schedule
22.  The principal Act is amended by inserting, immediately after section 143 thereof, the following Schedule: —
THE SCHEDULE
Section 75A.
Intervention in Solicitor’s Practice
Part I
Circumstances in which society may intervene
1.—(1)  Subject to sub-paragraph (2) of this paragraph, the powers conferred by Part II of this Schedule shall be exercisable where —
(a)the Council has reason to suspect dishonesty on the part of —
(i)a solicitor; or
(ii)an employee of a solicitor; or
(iii)the personal representatives of a deceased solicitor, in connection with that solicitor’s practice or in connection with any trust of which that solicitor is or formerly was a trustee;
(b)the Council considers that there has been undue delay on the part of the personal representatives of a deceased solicitor who immediately before his death was practising as a sole solicitor in connection with that solicitor’s practice or in connection with any trust of which that solicitor was the sole trustee or was co-trustee only with one or more of his partners or employees;
(c)the Council is satisfied that a solicitor has failed to comply with the rules made under section 74 of this Act;
(d)a solicitor has been adjudged bankrupt, or a receiving order in bankruptcy is in force against him or he has made a composition or arrangement with his creditors;
(e)a solicitor has one or more outstanding judgments against him amounting in the aggregate to one hundred thousand dollars which he has been unable to satisfy within six months from the date of the earliest judgment;
(f)a solicitor has been committed to prison in any civil or criminal proceedings;
(g)a solicitor has been found under section 7 of the Mental Disorders and Treatment Act (Cap. 162) to be of unsound mind and incapable of managing himself and his affairs; or
(h)the name of a solicitor has been removed from or struck off the roll or a solicitor has been suspended from practice.
(2)  The powers conferred by Part II of this Schedule shall only be exercisable under sub-paragraph (1)(c) of this paragraph if the Society has given the solicitor notice in writing that the Council is satisfied that he has failed to comply with the rules specified in the notice and also (at the same or any later time) notice that the powers conferred by Part II of this Schedule are accordingly exercisable in his case.
2.  On the death of a sole solicitor paragraphs 6, 7 and 8 of this Schedule shall apply to the client accounts of his practice.
3.  The powers conferred by Part II of this Schedule shall also be exercisable, subject to paragraph 5(4) of this Schedule, where —
(a)a complaint is made to the Society that there has been undue delay on the part of a solicitor in connection with any matter in which the solicitor or his firm was instructed on behalf of a client or with any controlled trust; and
(b)the Society by notice in writing invites the solicitor to give an explanation within a period of not less than eight days specified in the notice; and
(c)the solicitor fails within that period to give an explanation which the Council regards as satisfactory; and
(d)the Society gives notice of the failure to the solicitor and (at the same or any later time) notice that the powers conferred by Part II of this Schedule are accordingly exercisable.
4.—(1)  Where the powers conferred by Part II of this Schedule are exercisable in relation to a solicitor, they shall continue to be exercisable after his death or after his name has been removed from or struck off the roll.
(2)  The references to the solicitor or his firm in paragraphs 5(1), 6(2), 6(3), 8, 9(1) and 9(5) of this Schedule include, in any case where the solicitor has died, references to his personal representatives.
Part II
Powers Exercisable on Intervention
Money
5.—(1)  The High Court, on the application of the Society, may order that no payment shall be made without the leave of the Court by any person (whether or not named in the order) of any money held by him (in whatever manner and whether it was received before or after the making of the order) on behalf of the solicitor or his firm.
(2)  No order under this paragraph shall take effect in relation to any person to whom it applies unless the Society has served a copy of the order on him (whether or not he is named in it) and, in the case of a bank, has indicated at which of its branches the Society believes that the money to which the order relates is held.
(3)  A person shall not be treated as having disobeyed an order under this paragraph by making a payment of money if he satisfies the Court that he exercised due diligence to ascertain whether it was money to which the order related but nevertheless failed to ascertain that the order related to it.
(4)  This paragraph does not apply where the powers conferred by this Part are exercisable by virtue of paragraph 3 of this Schedule.
6.—(1)  Without prejudice to paragraph 5 of this Schedule, if the Council passes a resolution to the effect that any sums of money to which this paragraph applies, and the right to recover or receive them, shall vest in the Society, all such sums shall vest accordingly (whether they were received by the person holding them before or after the Council’s resolution) and shall be held by the Society on trust to exercise in relation to them the powers conferred by this Part and subject thereto upon trust for the persons beneficially entitled to them.
(2)  This paragraph applies —
(a)where the powers conferred by this paragraph are exercisable by virtue of paragraph 1 of this Schedule, to all sums of money held by or on behalf of the solicitor or his firm in connection with his practice or with any trust of which he is or formerly was a trustee;
(b)where they are exercisable by virtue of paragraph 2 of this Schedule, to all sums of money in any client account; and
(c)where they are exercisable by virtue of paragraph 3 of this Schedule, to all sums of money held by or on behalf of the solicitor or his firm in connection with the trust or other matter to which the complaint relates.
(3)  The Society shall serve on the solicitor or his firm and on any other person having possession of sums of money to which this paragraph applies a certified copy of the Council’s resolution and a notice prohibiting the payment out of any such sums of money.
(4)  Within fourteen days of the service of a notice under sub-paragraph (3) of this paragraph, the person on whom it was served, on giving not less than forty-eight hours’ notice in writing to the Society and (if the notice gives the name of the solicitor instructed by the Society) to that solicitor, may apply to the High Court for an order directing the Society to withdraw the notice.
(5)  If the Court makes such an order, it shall have power also to make such other order with respect to the matter as it may think fit.
(6)  If any person on whom a notice has been served under sub-paragraph (3) of this paragraph pays out sums of money at a time when such payment is prohibited by the notice, he shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding five thousand dollars.
7.—(1)  If the Society takes possession of any sum of money to which paragraph 6 of this Schedule applies, the Society shall pay it into a special account in the name of the Society or of a person nominated on behalf of the Society, and any such person shall hold that sum on trust to permit the Society to exercise in relation to it the powers conferred by this Part and subject thereto on trust for the persons beneficially entitled to it.
(2)  A bank at which a special account is kept shall be under no obligation to ascertain whether it is being dealt with properly.
8.  Without prejudice to paragraphs 5, 6 and 7 of this Schedule, if the High Court is satisfied, on an application by the Society, that there is reason to suspect that any person holds money on behalf of the solicitor or his firm, the Court may require that person to give the Society information as to any such money and the accounts in which it is held.
Documents
9.—(1)  The Society may give notice to the solicitor or his firm requiring the production or delivery to any person appointed by the Society at a time and place to be fixed by the Society —
(a)where the powers conferred by this Part are exercisable by virtue of paragraph 1 of this Schedule, of all documents in the possession of the solicitor or his firm in connection with his practice or with any controlled trust; and
(b)where they are exercisable by virtue of paragraph 3 of this Schedule, of all documents in the possession of the solicitor or his firm in connection with the trust or other matters to which the complaint relates (whether or not they relate also to other matters).
(2)  The person appointed by the Society may take possession of any such documents on behalf of the Society.
(3)  Except in a case where an application has been made to the High Court under sub-paragraph (4) of this paragraph, if any person having possession of any such documents refuses, neglects or otherwise fails to comply with a requirement under sub-paragraph (1) of this paragraph, he shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding five thousand dollars.
(4)  The High Court may, on the application of the Society, order a person required to produce or deliver documents under sub-paragraph (1) of this paragraph to produce or deliver them to any person appointed by the Society at such time and place as may be specified in the order, and authorise him to take possession of them on behalf of the Society.
(5)  If, on an application by the Society, the High Court is satisfied that there is reason to suspect that documents in relation to which the powers conferred by sub-paragraph (1) of this paragraph are exercisable have come into the possession of some person other than the solicitor or his firm, the Court may order that person to produce or deliver the documents to any person appointed by the Society at such time and place as may be specified in the order and authorise him to take possession of them on behalf of the Society.
(6)  On making an order under this paragraph, or at any later time, the Court, on the application of the Society, may authorise a person appointed by the Society to enter any premises (using such force as is reasonably necessary) to search for and take possession of any documents to which the order relates.
(7)  The Society, on taking possession of any documents under this paragraph, shall serve upon the solicitor or the personal representatives and upon any other person from whom they were received on the Society’s behalf or from whose premises they were taken a notice that possession has been taken on the date specified in the notice.
(8)  Subject to sub-paragraph (9) of this paragraph a person upon whom a notice under sub-paragraph (7) of this paragraph is served, on giving not less than forty-eight hours’ notice to the Society and (if the notice gives the name of the solicitor instructed by the Society) to that solicitor, may apply to the High Court for an order directing the Society to deliver the documents to such person as the applicant may require.
(9)  A notice under sub-paragraph (8) of this paragraph shall be given within eight days of the service of the Society’s notice under sub-paragraph (7) of this paragraph.
(10)  Without prejudice to the foregoing provisions of this Schedule, the Society may apply to the High Court for an order as to the disposal or destruction of any documents in its possession by virtue of this paragraph.
(11)  On an application under sub-paragraph (8) or (10) of this paragraph, the Court may make such order as it thinks fit.
(12)  Except so far as its right to do so may be restricted by an order on an application under sub-paragraph (8) or (10) of this paragraph, the Society may take copies of or extracts from any documents in its possession by virtue of this paragraph and require any person to whom it is proposed that such documents shall be delivered, as a condition precedent to delivery, to give a reasonable undertaking to supply copies or extracts to the Society.
Trusts
10.—(1)  If the solicitor or his personal representative is a trustee of a controlled trust, the Society may apply to the High Court for an order for the appointment of a new trustee in substitution for him.
(2)  The Trustees Act (Cap. 40) shall have effect in relation to an appointment of a new trustee under this paragraph as it has effect in relation to an appointment under section 40 of that Act.
General
11.  The powers in relation to sums of money and documents conferred by this Part shall be exercisable notwithstanding any lien on them or right to their possession.
12.  Subject to any order for the payment of costs that may be made on an application to the Court under this Schedule, any costs incurred by the Society for the purposes of this Schedule, including, without prejudice to the generality of this paragraph, the costs of any person exercising powers under this Part on behalf of the Society, shall be paid by the solicitor or his personal representatives and shall be recoverable from him or them as a debt owing to the Society.
13.  Where an offence under this Schedule committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
14.  Any application to the High Court under this Schedule may be disposed of in chambers.
15.  The Society may do all things which are reasonably necessary for the purpose of facilitating the exercise of its powers under this Schedule.
16.  In this Schedule, “controlled trust”, in relation to a solicitor, means a trust of which he is a sole trustee or co-trustee only with one or more of his partners or employees.”.