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Second Reading Speech on Legal Profession (Amendment) Bill 2005
Posted on Monday, November 21, 2005 - 12:00 AM

Second Reading Speech on Legal Profession (Amendment) Bill 2005 by Deputy Prime Minister, Co-ordinating Minister for National Security and Minister for Law Prof S Jayakumar, Mon, 21 November 2005.

Mr Speaker, Sir, I beg to move, that the Bill be now read a second time.

2 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, which have worked well over the past five years.

3 Sir, in 2004, the Government introduced limited liability partnerships (LLPs) as a new business form in Singapore, and the Limited Liability Partnerships Act 2005 came into force in April 2005.

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

5 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. I should say leading law firms in the USA, UK and elsewhere are increasingly converting to LLPs, which are generally acknowledged to be a much more pro-business corporate structure.

6 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 practice 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.

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

8 In addition, Sir, 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 3 years immediately preceding his application, without having to undergo the requisite training.

9 Sir, I beg to move.

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