LEGAL PROFESSION (AMENDMENT) BILL

Column No : 1827

LEGAL PROFESSION (AMENDMENT) BILL: Order for Second Reading read.

3.12 pm

The Deputy Prime Minister and Minister for Law (Prof. S Jayakumar): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, this Bill amends the Legal Profession Act to enable lawyers to form Limited Liability Partnerships (LLPs) as an alternative business structure for legal practice. The provisions are modelled on the provisions in the Legal Profession Act relating to law corporations, provisions which have worked well over the past five years.

Sir, in 2004, the Government introduced limited liability partnershipsas a new business form in Singapore, and the Limited Liability Partnerships Act 2005 came into force in April 2005.

Sir, these amendments are needed to allow legal practices to be converted to or constituted as LLPs.

Lawyers who are not sole proprietors can form ordinary partnerships or law corporations with other lawyers. The addition of an LLP option will provide lawyers with the ideal combination of limited liability, whilst preserving their status as "partners" with the flexibility of a partnership. Sir, I should say that leading law firms in the United States and United Kingdom and elsewhere are increasingly converting to LLPs, which are generally acknowledged to be a much more pro-business corporate structure.

But let me stress that there will be no compromise in protecting the interests of clients. The Law Society will exercise regulatory and ethical control over lawyers practising in LLPs. Lawyers seeking to register LLPs to practise law must obtain the approval of the Law Society. In addition, rules will provide that all partners of the LLP must be lawyers. Existing rules relating to professional conduct, solicitors accounts, publicity and professional indemnity will be extended to LLPs. In particular, the requirement for law corporations to have professional indemnity insurance of $2 million will also apply to LLPs.

Sir, the Bill also clarifies the application of certain provisions of the LPA to locum solicitors. From 1st April 2005, lawyers have been allowed to practise as locum solicitors. The Act will be amended to clarify that law pupils may not serve their pupillage under locum solicitors.

In addition, the Act currently requires a solicitor who has not been in active practice for three out of the preceding five years to undergo additional training as prescribed by the Council of the Law Society, if he wishes to apply for a locum practising certificate. This Bill amends the Act to allow such a solicitor to apply for the locum practising certificate,

if he has practised as a locum solicitor within the period of three years immediately preceding his application, without having to undergo the requisite training.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill.- [Prof. S Jayakumar].

Bill considered in Committee; reported without amendment; read a Third time and passed.