LEGAL PROFESSION ACT 2007 - SECT 507
Effect of service of notice of appointment
LEGAL PROFESSION ACT 2007 - SECT 507
Effect of service of notice of appointment
507 Effect of service of notice of appointment
(1) After a law practice is given a notice of appointment of the manager for
the practice and until the appointment is terminated, a legal practitioner
associate of the practice who is stated or mentioned in the notice must not
participate in the affairs of the practice except under the direct supervision
of the manager.
Penalty—
Maximum penalty—100 penalty units.
(2)
After an ADI is given a notice of appointment of the manager for the law
practice and until the appointment is terminated, the ADI must ensure that no
funds are withdrawn or transferred from a trust account of the practice unless
the withdrawal or transfer is made—
(a) by cheque or other instrument drawn
on that account and signed by—
(i) the manager; or
(ii) a receiver for the
practice; or
(iii) a nominee of the manager or receiver; or
(b) by means of
electronic or internet banking facilities by—
(i) the manager; or
(ii) a
receiver for the practice; or
(iii) a nominee of the manager or receiver; or
(c) under an authority to withdraw or transfer funds from the account signed
by—
(i) the manager; or
(ii) a receiver for the practice; or
(iii) a
nominee of the manager or receiver.
(3) After a person is given a notice of
appointment of the manager for the law practice and until the appointment is
terminated, the person must not—
(a) deal with any of the practice’s
trust money; or
(b) sign any cheque or other instrument drawn on a
trust account of the practice; or
(c) authorise the withdrawal or transfer of
funds from a trust account of the practice.
Penalty—
Maximum
penalty—100 penalty units.
(4) Subsection (3) does not apply to a legal
practitioner associate mentioned in subsection (1) , an ADI or the manager or
receiver for the practice.
(5) If approved by the law society, the manager
may, for subsection (2) (b) , enter into arrangements with an ADI for
withdrawing money from a trust account of the law practice by means of
electronic or internet banking facilities.
(6) If an amount is withdrawn or
transferred in contravention of subsection (2) , that amount may be recovered
from the ADI concerned by the manager, or a receiver for the law practice, as
a debt and, if recovered, must be paid into a trust account of the law
practice or another trust account nominated by the manager or receiver.
