Singapore legislation
Schedule 2
Schedule 2
Conditions for accepting executive appointmentin business entity
SECOND SCHEDULERule 34(4), (5) and (9)Conditions for accepting executive appointmentin business entity
1. The business of the business entity —
must not jeopardise the professional integrity, independence or competence of the legal practitioner; and
must not detract from the standing and dignity of the legal profession.
2. The business entity must not be held out or described in such a way as to suggest —
that the business entity is a law practice; or
that any legal practitioner in the business entity provides services, carries on business, or is employed, as a regulated legal practitioner.
3. The involvement of the legal practitioner in the business entity must not impair, and must not be in conflict with, the legal practitioner’s duties —
in the law practice in which the legal practitioner practises; or
to any client of that law practice.
4. The files, records and accounts of the business entity must be kept separate from and independent of the files, records and accounts of the law practice in which the legal practitioner practises.
5. Where, in the course of dealing with the law practice in which the legal practitioner practises, a client of that law practice deals with, or is referred by that law practice to, the business entity, the legal practitioner must make full and frank disclosure of all of the following matters to the client:
the relationship (if any) between the business entity and each of the following:
that law practice;
every legal practitioner in that law practice who has any interest in the business entity;
the financial or other interests of each of the following in the business entity:
that law practice;
every legal practitioner in that law practice who has any interest in the business entity;
that the statutory protection conferred on a client of a law practice under the Act (including but not limited to compulsory professional indemnity insurance coverage and the Compensation Fund maintained under section 75 of the Act), or under any subsidiary legislation made under the Act, may not be available to a customer of the business entity.
6. The client account of the law practice in which the legal practitioner practises, and any other account of that law practice used to hold money for a client of that law practice, must not be used to hold money for the business entity in its capacity as such, or for any customer of the business entity in the customer’s capacity as such.
7. Each account of the business entity must not be used to hold money for the law practice in which the legal practitioner practises in that law practice’s capacity as such, or for any client of that law practice in the client’s capacity as such.8.—
The business entity must conduct its business at an address that is separate and distinct from the address of the law practice in which the legal practitioner practises.(2) However —
both addresses may be in the same building; and
the business entity is not to be treated as conducting its business at an address by reason only that the address is the address of the registered office of the business entity.