New South Wales Consolidated Acts

LEGAL PROFESSION ACT 2004 - SECT 153

153 Banning of incorporated legal practices

(1) The Supreme Court may, on the application of the Law Society Council or the Regulator, make an order disqualifying a corporation from providing legal services in this jurisdiction for the period the Court considers appropriate if satisfied that:

(a) a ground for disqualifying the corporation under this section has been established, and

(b) the disqualification is justified.

(2) An order under this section may, if the Supreme Court thinks it appropriate, be made:

(a) subject to conditions as to the conduct of the incorporated legal practice, or

(b) subject to conditions as to when or in what circumstances the order is to take effect, or

(c) together with orders to safeguard the interests of clients or employees of the incorporated legal practice.

(3) Action may be taken against an incorporated legal practice on any of the following grounds:

(a) that a legal practitioner director or an Australian legal practitioner who is an officer or employee of the corporation is found guilty of professional misconduct under a law of this jurisdiction or another jurisdiction,

(b) that the Law Society Council or the Regulator is satisfied, after conducting an audit of the incorporated legal practice, that the incorporated legal practice has failed to implement satisfactory management and supervision of its provision of legal services,

(c) that the incorporated legal practice (or a related body corporate) has contravened section 135 (Non-legal services and businesses of incorporated legal practices) or the regulations made under that section,

(d) that the incorporated legal practice has contravened section 152 (Disqualified persons),

(e) that a person who is an officer of the incorporated legal practice and who is the subject of an order under:

(i) section 154 (Disqualification from managing incorporated legal practice) or under provisions of a corresponding law that correspond to that section, or

(ii) section 179 (Prohibition on partnerships with certain partners who are not Australian legal practitioners) or under provisions of a corresponding law that correspond to that section,

is acting in the management of the incorporated legal practice.

(4) If a corporation is disqualified under this section, the Law Society Council or the Regulator that applied for the order must, as soon as practicable, notify the Regulator of every other jurisdiction.

(5) If a corporation is disqualified from providing legal services in another jurisdiction under a corresponding law, the Regulator or the Law Society Council may determine that the corporation is taken to be disqualified from providing legal services in this jurisdiction for the same period, but nothing in this subsection prevents the Regulator or the Law Society Council from instead applying for an order under this section.

(6) A corporation that provides legal services in contravention of a disqualification under this section is guilty of an offence.

Maximum penalty: 500 penalty units.

(7) A corporation that is disqualified under this section ceases to be an incorporated legal practice.

(8) Conduct of an Australian legal practitioner who provides legal services on behalf of a corporation in the capacity of an officer or employee of the corporation is capable of being unsatisfactory professional conduct or professional misconduct where the practitioner ought reasonably to have known that the corporation is disqualified under this section.

(9) The regulations may make provision for or with respect to the publication and notification of orders made under this section, including notification of appropriate authorities of other jurisdictions.