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Sub-Committee to look at Solicitors' Account Rules 1990 PDF Print E-mail
Friday, 15 June 2007 12:59pm

Bernard KokKUALA LUMPUR, Fri: The Conveyancing Practice and Legal Profession Committees have jointly set up a sub-committee to study the possibility of amending the Solicitors' Account Rules 1990.

The sub-committee will be headed by CPC member, Penang lawyer Bernard Kok. The other sub-committee members are: Cheong Yoke Ping (CPC); James Wong (CPC); Dennis Appaduray (LPC); Iruthaya Raj (LPC) and Nicholas Chang (LPC).

The sub-committee has been asked to complete its report within three weeks before recommendations are made to the Bar Council to amend the 1990 Rules pursuant to section 78 of the Legal Profession Act 1976.

Among the areas being looked at include:

PROHIBITING lawyers from issuing cash or bearer cheques or drawing money from their clients’ accounts via ATMs or online banking services;

REQUIRING lawyers to issue only account payee cheques;

WHETHER to introduce a two-signatory rule for withdrawals from the clients’ account if it exceeds a certain limit;

WHETHER a sole proprietor is required to hire a bookkeeper to comply with the two-signatory rule; and

ONLY a partner of a firm may sign a cheque to withdraw money from the clients’ account.

Comments (8)Add Comment
sub committee to look at Solicitor Account Rules
written by Avinder Singh Gill, Friday, June 15 2007 01:47 pm

I don't think that a sole proprietor Solicitor should be made to hire a bookkeeper to comply with the two signatory rule. This is simply offensive. Why should I hire someone to check me?

First of all this would offend the LPA; 2ndly this would only mean that we can't trust ourselves.

Partnerships have two more signatory rules for purposes of contractual relations between the partners.

Your suggestion seems to stifle us. I know that you are looking at it from the point of view of security and safeguards but what assurances can you give that a bookkeeper employed to comply with the two signatory rule will not work with the solicitor concerned to commit CBT, if at all.

This is not going to solve the problem, if at all there is a problem.

Anyways could you let us have the statistics of cases involving Sole Proprietors who have committed CBT or fiddled with their Client's accounts.

BTW is this a practice in other jurisdictions?

Avinder Singh Gill

Solicitors' Account Rules
written by Lawrence Teh, Friday, June 15 2007 04:30 pm

As a sole proprietor I am most appalled that anybody in the committee could even think about the proposition to have sole proprietor checked by a book-keeper.

Recently I issued a cheque for RM3,300,000.00. It was sole signatured under my clients' account. It was also cleared in (to my clients' account) and out (issued to the vendor) within 3 days. Would an act that requires honesty be checkable by a 2nd person?

Please do not make life difficult. It is already difficult enough to survive as a practising lawyer. One bad apple maketh a bunch of suffering good & honest practitioners!

It is good to have check and balances but please don't go overboard and be a hero within the committee! You may yourself be hooked by your own eagerness to shine honesty over and above what is ethically impossible to describe and uphold except from within one's heart and soul.

Lawrence Teh

Solicitors Account Rules 1990
written by Yeong Buang Leng, Friday, June 15 2007 04:37 pm

Discussions on two signature rule must be handled with utmost care. Too much exaggeration on this subject (even though it does not materialise at end of the day) could jeopardise public confidence on sole-prorietorship firm and consequently affect rice-bowls of many sole-proprietors.

Yeong Buang Leng

Thank you
written by Bernard Kok, Friday, June 15 2007 05:05 pm

Thank you for your comments and views which are indeed very relevant to the sub-committee. We will certainly take into consideration your views before putting up our recommendation to the Bar Council.

Bernard Kok

MERIT IN RHETORICAL QUESTION
written by Stephen Tan Ban Cheng, Friday, June 15 2007 05:49 pm

My dear Bernard Kok

My heartiest congratulations on your appointment to this hot seat. Please tread carefully. Most lawyers are one-man shows.

To impose the two-signatory rule and then require a sole proprietor to hire a book-keeper to comply with that means compliance costs that is most unwelcome. I have argued against that.

I know that the committee is set up to "study" the above-stated proposals and make recommendations, where necessary.

As Lawrence Teh posed rhetorically, "Would an act that requires honesty be checkable by a 2nd person?"

He adds: "Please do not make life difficult. It is already difficult enough to survive as a practising lawyer. One bad apple maketh a bunch of suffering good & honest practitioners!"

I verily believe there is merit in that honest-to-goodness view put up by Lawrence because we now have 12,000 lawyers fighting in a market of 24 million Malaysians. And, contrary to what the Government has repeatedly said, the economy is NOT growing.

Stephen Tan Ban Cheng

Solicitors Account Rules
written by Rishwant Singh, Friday, June 15 2007 06:13 pm

I get the impression that this is a result of us trying to learn from the experience of the legal profession in another jurisdiction: Singapore. The new rules in Singapore have come out and if you take a cursory look at it, some of the areas of review here in Malaysia were adopted in Singapore.

Rishwant Singh

Composition of Sub-Committee
written by Ng Hong Chai, Friday, June 15 2007 11:51 pm

Do we have anyone in the sub-committee who is a sole proprietor? If not, may I humbly suggest that at least one be co-opted to help the sub-committee appreciate the problems be faced by sole-proprietors which may not be appreciated by partnership solicitors.

Ng Hong Chai

Good Team
written by Nicole Tan Lee Koon, Sunday, June 17 2007 08:00 pm

Dear all,

I think that Bernard and his team are still open for further suggestions. Knowing Bernard, I have full confidence in his leadership as he is both meticulous and well-versed.

Nicole Tan Lee Koon


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