Victorian Consolidated Legislation

Legal Profession Act 2004 - SECT 2.2.9.

Sharing income with unqualified persons

2.2.9. Sharing income with unqualified persons



(1) An Australian legal practitioner or a law practice must not enter into an
agreement or arrangement with a person who is not an Australian legal
practitioner under which that person is entitled to share in the income from
the practitioner's or practice's legal practice otherwise than as is permitted
by this Act.

Penalty: 240 penalty units.

(2) An Australian legal practitioner or a law practice-

   (a)  may pay an annuity or other amount out of the income from legal
        practice to a retired Australian legal practitioner or to the
        dependants or personal representatives of a deceased Australian legal
        practitioner;

   (b)  may share income from legal practice with a community legal centre.

(3) An Australian legal practitioner may share income from legal practice-

   (a)  with a family member; or

   (b)  with a corporation the total beneficial interests in which are held by
        the practitioner or family members or both; or

   (c)  in the case of a corporate legal practitioner, with his or her
        employer.



(4) A law practice may share income from legal practice-

   (a)  with a family member of-

   (i)  a principal of the law practice; or

   (ii) an employee of the practice who is an Australian legal practitioner;
        or

   (b)  with a corporation the total beneficial interests in which are held by
        that principal or employee or their family members or both.

(5) A law practice, or a principal of a law practice, may share income from
legal practice with-

   (a)  another principal of the practice; or

   (b)  a partner or director of the practice who is an Australian-registered
        foreign lawyer.

Note See also section 2.7.20, which provides for the sharing of receipts in
relation to incorporated legal practices, and section 2.7.48, which provides
for the sharing of receipts in relation to multi-disciplinary partnerships.