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ILP Forum
Incorporated Legal Practices &
Legal Profession Uniform Law
2nd September 2014
Paddy Oliver
Managing Director
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Subject to
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Definition of ILP #1
Sect 6 - Definition of Incorporated Legal Practice
A corporation which satisfies the following criteria:
(a) (i) - it is a company within Corporations Act; or
(ii) - corporation, or a corporation of a kind approved under Sect
114 (Approved Business Structures) or specified in the Rules;
(b) it has given notice under section 104 that it intends to engage
in legal practice in Australia and that notice is still operative;
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Definition of ILP #2
(c) the legal services it provides or proposes to provide are
not limited to either or both of the following services:
(i) in-house legal services for the corporation or a related
entity;
(ii) services that are not legally required to be provided by
an Australian legal practitioner and that are provided by an
officer or employee who is not an Australian legal
practitioner
(d) it is not excluded by the Uniform Rules from being an ILP
Does not include a community legal service
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Disclosure Obligations
S 107 Disclosure obligations
(1) This section applies if a person engages an ILP or ULP to
provide services that the person might reasonably assume to
be legal services and the law practice provides both legal
services and other services.
(2) The law practice must, in accordance with the Uniform
Rules, make a disclosure to the person informing the person
(a) whether the services are legal services; and
(b) of any other matters specified in the Uniform Rules for
the purposes of this section.
(3) If a proper disclosure has not been made under this
section, the standard of care owed by the law practice in
respect of the service is the standard that would be applicable
if the service were a legal service that had been provided by an
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Other Issues
S108 - DLRA can intervene in external administration
proceedings under Corps Act (displacement provision)
S109 - ILP subject to receivership under LPUL & external
administration under Corps Act application to Supreme Court
regarding dual appointment (displacement provision)
S110 - ILP subject to receivership under LPUL and also
external administration under other legislation
S111 Extension of vicarious liability relating to failure to
account, pay or deliver and dishonesty to ILP
Phoenix-ing of ILPs - LPUL silent
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Compliance Audit
S256 (1) The DLRA may conduct, or appoint a suitably qualified
person to conduct, an audit of the compliance of a law practice
with this Law, the Uniform Rules and other applicable professional
obligations if the DLRA considers there are reasonable grounds to
do so, based on
(a) the conduct of the law practice or one or more of its
associates; or
(b) a complaint against the law practice or one or more of its
associates.
(2) The appointment of a suitably qualified person may be made
generally, or in relation to a particular law practice, or in relation to
a particular compliance audit.
(3) A report of a compliance audit is to be provided to the law
practice concerned and may be provided to the DLRA.
Note - Chapter 7 applies to a compliance audit.
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Major Changes
Definition of law firm
Duties / responsibilities placed on LPDs now placed upon all
law practice principals.
No explicit requirement for ILPs to implement appropriate
management systems.
Management systems direction only after audit
Audit now conditional on trigger factors
Conduct and / or Complaint
No power to audit management of provision of legal
services(including the supervision of officers &
employees)
Doubt that conduct equates to management
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Paddy Oliver
LL.B., M.Litt., M.B.A., GAICD
Managing Director
tel
03 9029 1632
www.lexcel.com.au
twitter @lexcelconsult
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