Singapore legislation
Schedule 1
Schedule 1
Intervention in solicitor’s practice
FIRST SCHEDULESection 74Intervention in solicitor’s practicePart 1Circumstances in Which Society May InterveneSolicitor practising on own account or firm of solicitors1.—
Subject to sub-paragraph (2), the powers conferred by Part 2 are exercisable where —
the Council has reason to suspect dishonesty on the part of —
a solicitor;
an employee of a solicitor; or
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;
the Council considers that there has been undue delay on the part of the personal representatives of a deceased solicitor who immediately before his or her 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 or her partners or employees;
the Council is satisfied that a solicitor has contravened —
any rules made under section 72; or
any rules made under section 73D of the Conveyancing and Law of Property Act 1886;
a solicitor has been adjudicated bankrupt or has made a composition or an arrangement with his or her creditors;
a solicitor has one or more outstanding judgments against him or her amounting in the aggregate to $100,000 which he or she has been unable to satisfy within 6 months from the date of the earliest judgment;
a solicitor has been committed to prison in any civil or criminal proceedings;
the Council is satisfied that a sole solicitor is incapacitated by illness or accident, or by any physical or mental condition, to such an extent as to be unable to attend to his or her practice;
(ga)the fitness of a sole proprietor to practise has been determined under section 25C to be impaired by reason of his or her physical or mental condition, or a sole proprietor, having been ordered by a Judge to submit to a medical examination under section 25C to be conducted within such period as the Judge may specify in the order, fails to do so;
a solicitor lacks capacity within the meaning of the Mental Capacity Act 2008 to act as a solicitor;
the name of a solicitor has been removed from or struck off the roll or a solicitor has been suspended from practice;
the Council is satisfied that a sole solicitor has abandoned his or her practice; or
the Council is satisfied that a person has acted as a solicitor at a time when he or she did not have a practising certificate which was in force.(2) The powers conferred by Part 2 are only exercisable under sub‑paragraph (1)(c) if the Society has given the solicitor written notice that the Council is satisfied that the solicitor has contravened the rules specified in the notice and also (at the same or any later time) notice that the powers conferred by Part 2 are accordingly exercisable in the solicitor’s case.
2. On the death of a sole solicitor, paragraphs 10, 11 and 12 apply to the client accounts, conveyancing accounts (if any) and conveyancing (CPF) accounts (if any) of his or her practice.
3. The powers conferred by Part 2 are also exercisable, subject to paragraph 9(4), where —
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 or her firm was instructed on behalf of a client or with any controlled trust;
the Society by written notice invites the solicitor to give an explanation within a period of not less than 8 days specified in the notice;
the solicitor fails within that period to give an explanation which the Council regards as satisfactory; and
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 2 are accordingly exercisable.4.—
Where the powers conferred by Part 2 are exercisable in relation to a solicitor, they continue to be exercisable after his or her death or after his or her name has been removed from or struck off the roll.(2) The references to the solicitor or his or her firm in paragraphs 9(1), 10(2) and (3), 12 and 13(1) and (5) include, in any case where the solicitor has died, references to his or her personal representatives.Law corporation5.—
Subject to sub-paragraph (2), where —
the Council is satisfied that a law corporation has contravened —
any rules made under section 72 which are applicable to the law corporation by virtue of that section; or
any rules made under section 73D of the Conveyancing and Law of Property Act 1886;
a person has been appointed receiver or manager of property of a law corporation;
a judicial manager has been appointed, or a winding up order has been made under the Insolvency, Restructuring and Dissolution Act 2018, with respect to a law corporation, or a resolution for voluntary winding up has been passed with respect to a law corporation (other than a resolution passed solely for the purposes of its reconstruction or its amalgamation with another company); or
the Council has reason to suspect dishonesty on the part of any officer or employee of a law corporation in connection with that law corporation’s business or in connection with any trust of which that corporation is or formerly was a trustee,the powers conferred by Part 2 are exercisable in relation to the law corporation and its business in like manner as they are exercisable in relation to a solicitor and his or her practice.(2) Those powers are only exercisable by virtue of sub‑paragraph (1)(a) if the Society has given the law corporation written notice that the Council is satisfied that the law corporation has contravened the rules specified in the notice and also (at the same or any later time) notice that those powers are accordingly exercisable in its case by virtue of sub‑paragraph (1)(a).
6. The powers conferred by Part 2 are also exercisable as mentioned in paragraph 5(1) where —
a complaint is made to the Society that there has been undue delay on the part of a law corporation in connection with any matter in which it was instructed on behalf of a client or with any controlled trust;
the Society by written notice invites the law corporation to give an explanation within a period of not less than 8 days specified in the notice;
the law corporation fails within that period to give an explanation which the Council regards as satisfactory; and
the Society gives notice of the failure to the law corporation and (at the same or any later time) notice that the powers conferred by Part 2 are accordingly exercisable.7.—
Where the registration of a law corporation has been cancelled under section 163, the powers conferred by Part 2 are exercisable in relation to the law corporation and its former business as a law corporation as they are exercisable in relation to a solicitor and his or her practice.(2) Where the powers conferred by Part 2 are exercisable in relation to a law corporation in accordance with paragraph 5 or 6, they continue to be so exercisable after that law corporation’s registration has been cancelled or has otherwise ceased to be in force.
8. In connection with the application of Part 2 to a law corporation in that Part —
any reference to the solicitor or to his or her practice includes a reference to the law corporation in relation to which the powers conferred by that Part are exercisable by virtue of paragraph 5, 6 or 7(1) or to its business (or former business) as a law corporation;
any reference to paragraph 1 includes a reference to paragraph 5 or 7(1); and
any reference to paragraph 3 includes a reference to paragraph 6.Limited liability law partnership8A.—
Subject to sub-paragraph (2), where —
the Council is satisfied that a limited liability law partnership has contravened —
any rules made under section 72 which are applicable to the limited liability law partnership by virtue of that section; or
any rules made under section 73D of the Conveyancing and Law of Property Act 1886;
a person has been appointed receiver or manager of property of a limited liability law partnership;
a winding up order under the Limited Liability Partnerships Act 2005 has been made with respect to a limited liability law partnership or a resolution for voluntary winding up has been passed with respect to a limited liability law partnership; or
the Council has reason to suspect dishonesty on the part of any partner or employee of a limited liability law partnership in connection with that limited liability law partnership’s business or in connection with any trust of which that limited liability law partnership is or formerly was a trustee,the powers conferred by Part 2 are exercisable in relation to the limited liability law partnership and its business in like manner as they are exercisable in relation to a solicitor and his or her practice.(2) Those powers are only exercisable by virtue of sub‑paragraph (1)(a) if the Society has given the limited liability law partnership written notice that the Council is satisfied that the limited liability law partnership has contravened the rules specified in the notice and also (at the same or any later time) notice that those powers are accordingly exercisable in its case by virtue of sub‑paragraph (1)(a).8B. The powers conferred by Part 2 are also exercisable as mentioned in paragraph 8A(1) where —
a complaint is made to the Society that there has been undue delay on the part of a limited liability law partnership in connection with any matter in which it was instructed on behalf of a client or with any controlled trust;
the Society by written notice invites the limited liability law partnership to give an explanation within a period of not less than 8 days specified in the notice;
the limited liability law partnership fails within that period to give an explanation which the Council regards as satisfactory; and
the Society gives notice of the failure to the limited liability law partnership and (at the same or any later time) notice that the powers conferred by Part 2 are accordingly exercisable.8C.—
Where the registration of a limited liability law partnership has been cancelled under section 147, the powers conferred by Part 2 are exercisable in relation to the limited liability law partnership and its former business as a limited liability law partnership as they are exercisable in relation to a solicitor and his or her practice.(2) Where the powers conferred by Part 2 are exercisable in relation to a limited liability law partnership in accordance with paragraph 8A or 8B, they continue to be so exercisable after that limited liability law partnership’s registration has been cancelled or has otherwise ceased to be in force.8D. In connection with the application of Part 2 to a limited liability law partnership in that Part —
any reference to the solicitor or to his or her practice includes a reference to the limited liability law partnership in relation to which the powers conferred by that Part are exercisable by virtue of paragraph 8A, 8B or 8C(1) or to its business (or former business) as a limited liability law partnership;
any reference to paragraph 1 includes a reference to paragraph 8A or 8C(1); and
any reference to paragraph 3 includes a reference to paragraph 8B.Part 2Powers Exercisable on InterventionMoney9.—
The General Division of the High Court may, on the application of the Society, order that no payment may be made without the leave of the General Division of the High Court by any person (whether or not named in the order) of any money held by the person (in whatever manner and whether it was received before or after the making of the order) on behalf of the solicitor or the solicitor’s firm.(2) An order under this paragraph does not take effect in relation to any person to whom it applies unless the Society has served a copy of the order on the person (whether or not the person 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 must not be treated as having disobeyed an order under this paragraph by making a payment of money if the person satisfies the General Division of the High Court that the person 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 3.10.—
Without affecting paragraph 9, 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 such sums, vest in the Society, all such sums vest accordingly (whether they were received by the person holding them before or after the Council’s resolution) and must 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 —
where the powers conferred by this paragraph are exercisable, by virtue of paragraph 1, to all sums of money held by or on behalf of the solicitor or his or her firm in connection with his or her practice or with any trust of which he or she is or formerly was a trustee;
where the powers conferred by this paragraph are exercisable by virtue of paragraph 2, to all sums of money in any client account, conveyancing account or conveyancing (CPF) account; and
where the powers conferred by this paragraph are exercisable by virtue of paragraph 3, to all sums of money held by or on behalf of the solicitor or his or her firm in connection with the trust or other matter to which the complaint relates.(3) The Society must serve on the solicitor or his or her 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 14 days of the service of a notice under sub‑paragraph (3), the person on whom it was served may, on giving not less than 48 hours’ written notice to the Society and (if the notice gives the name of the solicitor instructed by the Society) to that solicitor, apply to the General Division of the High Court for an order directing the Society to withdraw the notice.(5) If the General Division of the High Court makes such an order, it has power also to make any 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) pays out sums of money at a time when the payment is prohibited by the notice, the person shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000.11.—
If the Society takes possession of any sum of money to which paragraph 10 applies, the Society must pay it into a special account in the name of the Society or of a person nominated on behalf of the Society, and that person holds 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 is under no obligation to ascertain whether it is being dealt with properly.(3) Any moneys paid into a special account under sub‑paragraph (1) which have not been claimed for a period of 6 years must be paid by the Society into the Unclaimed Money Fund maintained under section 70J.(4) No action to recover any money paid into the Unclaimed Money Fund under sub‑paragraph (3) (called in this paragraph transferred unclaimed intervention money), or any interest, dividends and other accretions of capital arising from the investment of the transferred unclaimed intervention money, may be brought on or after the date the transferred unclaimed intervention money is paid into the Unclaimed Money Fund under sub‑paragraph (3), against —
the Society or any wholly‑owned subsidiary of the Society to which the transferred unclaimed intervention money is transferred under section 70J(3)(b); or
any other person from whom the Society took possession under sub‑paragraph (1) of the transferred unclaimed intervention money.(5) If any claimant applies to the Society for payment of any amount of any transferred unclaimed intervention money, after the money is paid into the Unclaimed Money Fund under sub‑paragraph (3), the Society may pay the whole or any part of that amount to the claimant from the Unclaimed Money Fund.(6) No interest is payable on any transferred unclaimed intervention money by the Society to any claimant under sub‑paragraph (5).
12. Without affecting paragraphs 9, 10 and 11, if the General Division of 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 or her firm, the General Division of the High Court may require that person to give the Society information as to that money and the accounts in which it is held.Documents13.—
The Society may give notice to the solicitor or his or her firm requiring the production or delivery to any person appointed by the Society at a time and place to be fixed by the Society —
where the powers conferred by this Part are exercisable by virtue of paragraph 1, of all documents in the possession of the solicitor or his or her firm in connection with his or her practice or with any controlled trust; and
where the powers conferred by this Part are exercisable by virtue of paragraph 3, of all documents in the possession of the solicitor or his or her 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 General Division of the High Court under sub‑paragraph (4), if any person having possession of any such documents refuses, neglects or otherwise fails to comply with a requirement under sub‑paragraph (1), he or she shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000.(4) The General Division of the High Court may, on the application of the Society, order a person required to produce or deliver documents under sub‑paragraph (1) 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 the appointed person to take possession of the documents on behalf of the Society.(5) If, on an application by the Society, the General Division of the High Court is satisfied that there is reason to suspect that documents in relation to which the powers conferred by sub‑paragraph (1) are exercisable have come into the possession of some person other than the solicitor or his or her firm, the General Division of the High Court may order that person to produce or deliver the documents to a person appointed by the Society at such time and place as may be specified in the order and authorise the appointed person to take possession of the documents on behalf of the Society.(6) On making an order under this paragraph, or at any later time, the General Division of the High Court may, on the application of the Society, 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 may, on taking possession of any documents under this paragraph, serve upon the solicitor or his or her personal representatives and upon any other person from whom the documents were received on the Society’s behalf or from whose premises the documents were taken a notice that possession has been taken on the date specified in the notice.(8) Subject to sub-paragraph (9), a person upon whom a notice under sub‑paragraph (7) is served may, on giving not less than 48 hours’ notice to the Society and (if the notice gives the name of the solicitor instructed by the Society) to that solicitor, apply to the General Division of 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) must be given within 8 days of the service of the Society’s notice under sub‑paragraph (7).(10) Without affecting the foregoing provisions, the Society may apply to the General Division of 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), the General Division of the High 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), 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 those documents be delivered, as a condition precedent to delivery, to give a reasonable undertaking to supply copies or extracts thereof to the Society.Trusts14.—
If the solicitor or his or her personal representative is a trustee of a controlled trust, the Society may apply to the General Division of the High Court for an order for the appointment of a new trustee in substitution of him or her.(2) The Trustees Act 1967 has effect in relation to an appointment of a new trustee under this paragraph as it has effect in relation to an appointment under section 37 of that Act.General
15. The powers in relation to sums of money and documents conferred by this Part are exercisable despite any lien on them or right to their possession.
16. Subject to any order for the payment of costs that may be made on an application to the General Division of the High Court under this Schedule, any costs incurred by the Society for the purposes of this Schedule, including, without limiting this paragraph, the costs of any person exercising powers under this Part on behalf of the Society, must be paid by the solicitor or his or her personal representatives and are recoverable from him or her or them as a debt owing to the Society.
17. 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 or she, as well as the body corporate, shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
18. Any application to the General Division of the High Court under this Schedule may be disposed of in chambers.
19. The Society may do all things which are reasonably necessary for the purpose of facilitating the exercise of its powers under this Schedule.
20. In this Schedule —“controlled trust”, in relation to a solicitor, means a trust of which the solicitor is a sole trustee or co‑trustee only with one or more of his or her partners or employees;“conveyancing account” means a bank account maintained in accordance with any rules made under section 73D of the Conveyancing and Law of Property Act 1886 for the purpose of depositing conveyancing money;“conveyancing (CPF) account” means a bank account maintained in accordance with any rules made under section 73D of the Conveyancing and Law of Property Act 1886 for the purpose of depositing money withdrawn from the Central Provident Fund for or in connection with a conveyancing transaction.[21/2008; 17/2011; 40/2014; 22/2018; 40/2018; 40/2019]