1992 Legislative Session: 1st Session, 35th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


ATTORNEY GENERAL

BILL 75 -- 1992

LEGAL PROFESSION AMENDMENT ACT, 1992

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 of the Legal Profession Act, S.B.C. 1987, c. 25, is amended

(a) by adding the following definition:

"applicant" means a person who has applied under section 34 (3) for enrolment as an articled student, for call and admission or for reinstatement; ,

(b) by repealing the definitions of "credentials committee" and "discipline committee",

(c) by adding the following definition:

"chair" means a person appointed to preside at meetings of a committee or panel; ,

(d) by repealing the definition of "conduct unbecoming a member of the society" and substituting the following:

"conduct unbecoming a member of the society" includes any matter, conduct or thing that is deemed, in the judgment of the benchers or a panel,

(a) to be contrary to the best interest of the public or of the legal profession, or

(b) to harm the standing of the legal profession; ,

(e) by adding the following definitions:

"costs" means costs assessed pursuant to a rule made under section 25 (2) (a);

"panel" means a panel established in accordance with section 54.1; ,

(f) by repealing the definition of "respondent" and substituting the following:

"respondent" means a person whose conduct or competence is the subject of a citation directed to be issued under section 39 (8) or under review by the benchers under section 47 or 48; , and

(g) by adding the following definition:

"vice chair" means a person appointed to preside at meetings of a committee in the absence of the chair.

2 Section 9 is amended by adding the following subsection:

(12) The powers of the treasurer under sections 35, 41, 43, 54.1 and 55 may be exercised by the deputy treasurer, assistant deputy treasurer or secretary.

3 Section 24 (2) (b) and (c) and (9) is repealed.

4 Section 25 (2) (a) is repealed and the following substituted:

(a) provide for practice and procedure for proceedings before the benchers, panels, executive committee, credentials committee, competency committee, discipline committee and any other committees established under section 24 (2) (a), including rules governing the assessment of costs under this Act and, in the case of hearings ordered by the credentials committee, rules requiring payment of security for costs, .

5 Section 26 (2) is repealed and the following substituted:

(2) A person who is employed by a member, a firm of members, a law corporation or the Province and who acts under the supervision of a member does not contravene subsection (1).

6 Section 34 is amended

(a) by repealing subsection (1) and substituting the following:

(1) The treasurer shall appoint a credentials committee consisting of a chair and vice chair, both of whom shall be benchers, and such other benchers and members of the society as the treasurer may determine, for terms of office determined by the treasurer. , and

(b) by repealing subsections (3) to (8) and substituting the following:

(3) The credentials committee may consider an application for

(a) enrolment as an articled student by a person meeting the educational qualifications established pursuant to section 27 (1) (d),

(b) call and admission by an articled student or a barrister and solicitor of another province or territory, or

(c) reinstatement by a former member

and may conduct or authorize any person to conduct an investigation concerning the application.

(4) On an application for enrolment as an articled student, the credentials committee may

(a) enroll the applicant without conditions or limitations,

(b) enroll the applicant with conditions or limitations on the activities of the applicant as an articled student, where the applicant consents in writing to those conditions or limitations, or

(c) order a hearing.

(5) On an application for call and admission, the credentials committee may

(a) recommend to the benchers that the applicant be called and admitted without conditions or limitations,

(b) recommend to the benchers that the applicant be called and admitted with conditions or limitations imposed on his or her practice pursuant to section 28 (3), where the applicant consents in writing to those conditions or limitations, or

(c) order a hearing.

(6) Subject to section 36, on an application for reinstatement, the credentials committee may

(a) reinstate the applicant without conditions or limitations,

(b) reinstate the applicant with conditions or limitations on the practice of the applicant where the applicant consents in writing to those conditions or limitations, or

(c) order a hearing.

(7) The credentials committee may consider an application referred to in subsection (3) and order a hearing, notwithstanding that the application has been withdrawn.

(8) The credentials committee may, with the consent of the person concerned, vary or remove conditions or limitations made under this section.

7 Section 35 is repealed and the following substituted:

Credentials hearings

35 (1) Where a hearing is ordered under section 34,

(a) the applicant shall be notified at least 30 days before the hearing, unless the applicant consents to a shorter notice period, and

(b) the treasurer shall establish a panel under section 54.1 to conduct the hearing.

(2) A panel may

(a) compel the applicant to give evidence under oath, and

(b) at any time before or during a hearing, order the applicant to produce all relevant files and records that are in the applicant's possession or control.

(3) At the conclusion of a hearing on an application for enrolment as an articled student, the panel may

(a) enroll the applicant without conditions or limitations,

(b) enroll the applicant with conditions or limitations on the activities of the applicant as an articled student, or

(c) reject the application.

(4) At the conclusion of a hearing on an application for call and admission, the panel may

(a) recommend to the benchers that the applicant be called and admitted without conditions or limitations,

(b) recommend to the benchers that the applicant be called and admitted with conditions or limitations imposed on the applicant's practice under section 28 (3), or

(c) reject the application.

(5) Subject to section 36, at the conclusion of a hearing on an application for reinstatement, the panel may

(a) reinstate the applicant without conditions or limitations,

(b) reinstate the applicant with conditions or limitations on the practice of the applicant, or

(c) reject the application.

(6) Where an application is rejected following a hearing

(a) the panel shall, on the written request of the applicant, give written reasons for its decision, and

(b) the applicant shall not be enrolled as an articled student, called and admitted or reinstated, as the case may be.

(7) A panel may complete a hearing notwithstanding that the application has been withdrawn.

(8) Conditions or limitations imposed by a panel under this section may be varied or removed on application by the person concerned to the treasurer, who shall refer the application to the same panel that conducted the hearing or to the credentials committee, as the treasurer considers appropriate.

8 Section 36 is amended

(a) by repealing subsection (1) (b) and substituting the following:

(b) a 2/3 majority, in any other case. , and

(b) by repealing subsections (2) to (6) and substituting the following:

(2) Where an applicant for reinstatement has been disbarred or, as a result of disciplinary proceedings, has resigned from membership in the society or otherwise ceased to be a member of the society as a result of disciplinary proceedings, the credentials committee shall order a hearing.

(3) Notice in writing of an application for reinstatement shall be given by the applicant to such persons as the secretary may direct, and the persons notified may appear at the hearing in person or by counsel and be heard on the application.

(4) At the conclusion of a hearing ordered under subsection (2), the panel conducting the hearing may

(a) recommend to the benchers that the applicant be reinstated without conditions or limitations,

(b) recommend to the benchers that the applicant be reinstated with conditions or limitations on the practice of the applicant, or

(c) reject the application.

(5) Where a panel recommends reinstatement under subsection (4)

(a) or (b), the benchers may reinstate the applicant on a 2/3 majority vote of the benchers present at the meeting of the benchers and may impose conditions or limitations on the practice of the applicant by a majority vote.

(6) Where an applicant is reinstated under subsection (5) subject to conditions or limitations, the benchers may vary or remove those conditions or limitations.

9 Section 39 is amended

(a) by repealing subsection (1) and substituting the following:

(1) The treasurer shall appoint a discipline committee consisting of a chair and vice chair, both of whom shall be benchers, and such other benchers and members of the society as the treasurer may determine, for terms of office determined by the treasurer. , and

(b) by repealing subsections (3) to (9) and substituting the following:

(3) The discipline committee may consider the conduct or competence of a member, former member or articled student and may conduct or authorize any person to conduct an investigation into the conduct or competence of the member, former member or articled student.

(4) Where the chair, vice chair or another bencher member of the discipline committee believes that a member or former member may have committed any misconduct, conduct unbecoming a member of the society or breach of this Act or the rules made under it, that bencher may order that an investigation be made of the books, records and accounts of the member or former member.

(5) Where an order is made under subsection (4), the secretary shall designate one or more persons to conduct the investigation.

(6) Where an order is made under subsection (4), the member or former member concerned shall immediately produce and permit the copying of all files, vouchers, records, accounts, books and any other evidence and shall furnish such explanations as the persons designated by the secretary under subsection (5) require for the purpose of the investigation.

(7) The discipline committee may require a member, former member or articled student to appear before the committee or before another body provided for in the rules, to discuss the conduct or competence of the member, former member or articled student.

(8) The chair of the discipline committee or any 3 benchers may order a hearing into the conduct or competence of a member, former member or articled student by directing that a citation be issued against the member, former member or articled student.

10 The following section is added:

Audits of books, records and accounts

39.1 (1) The secretary may at any time order an audit of the books, records and accounts of any member for the purpose of ascertaining whether the member is maintaining and has been maintaining books, records and accounts in accordance with this Act and the rules made under it and designate a person or persons to conduct the audit.

(2) Where an order is made under subsection (1), the member concerned shall immediately produce and permit the copying of all files, vouchers, records, accounts, books and any other evidence and shall furnish such explanations as the person designated by the secretary shall require for the purpose of the audit.

11 Section 40 is amended

(a) by repealing subsection (1) and substituting the following:

(1) The chair, vice chair or another bencher member of the discipline committee may apply to a judge of the Supreme Court for an order that files or other records, wherever located, of or relating to a member, former member or articled student be seized from the person named in the order, if the bencher has reasonable grounds to believe that a member, former member or articled student may have committed or will commit any

(a) misconduct,

(b) conduct unbecoming a member of the society, or

(c) breach of this Act or a rule made under it.

(1.1) An application under subsection (1) may be made without notice to anyone or on such notice as the judge requires. , and

(b) by repealing subsections (3) and (4) and substituting the following:

(3) In an application under subsection (1), the person making the application shall state on oath the grounds for believing the matter referred to in subsection (1) and the grounds for believing that the seizure will produce evidence relevant to that matter.

(4) In an order under subsection (1), the court may

(a) designate the person who will conduct the seizure and authorize that person to conduct it,

(b) state the time and place where the seizure will take place, and

(c) give any other directions that are necessary to carry out the seizure.

12 Section 41 is repealed and the following substituted:

Discipline hearings

41 (1) Where a citation has been issued under section 39 (8),

(a) the respondent shall be served with the citation in accordance with the rules, and

(b) the treasurer shall establish a panel under section 54.1 to conduct a hearing, make a determination under section 45 and take action, where appropriate, under section 46.

(2) A person who has participated in the decision to direct that a citation be issued shall not, in respect of that citation, participate in

(a) the hearing, or

(b) a review by the benchers under section 47 or 48.

(3) A panel may

(a) compel the respondent to give evidence under oath, and

(b) at any time before or during a hearing, order the respondent to produce all files and records that are in the respondent's possession or control that may be relevant to the matters raised in the citation.

13 Section 42 is amended

(a) by repealing subsection (1) and substituting the following:

(1) Where a member or former member is

(a) served with an order under section 35 (2) (b), 40 (1) or (2) or 41 (3) (b), or

(b) required to produce information, files or records under section 37 (3) (b)

and the member or former member objects to the production of a document on the grounds that the document is confidential and that a client objects to its disclosure, the document shall be sealed without inspection or copying and placed into the custody of

(c) any member acceptable to both the member or former member and the society, or

(d) a sheriff. ,

(b) by repealing subsection (3) and substituting the following:

(3) The person having custody of a sealed document shall return the document to the member or former member unless the society delivers within 30 days to the person having custody

(a) a written waiver of confidentiality signed by the client, or

(b) the secretary's certification that the client has been contacted and has given an oral waiver of confidentiality,

in which case, the person having custody shall deliver the document to the secretary. , and

(c) in subsection (4) by striking out "and" at the end of paragraph (a), by adding ", and" at the end of paragraph (b) and by adding the following:

(c) examine the sealed document and any affidavit evidence that the judge considers relevant, and

(i) if the judge is of the opinion that the document should not be disclosed, ensure that it is resealed and order the person having custody to return the document to the member or former member, or

(ii) if the judge is of the opinion that the document should be disclosed, order the person having custody to deliver the document to the secretary, subject to such restrictions or conditions as the judge considers appropriate.

14 Section 43 is repealed and the following substituted:

Suspension

43 (1) Where there has been a direction under section 39 (8) to issue a citation, any 3 benchers may, with or without notice to the respondent,

(a) suspend the member, if they consider, on the balance of probabilities, that the continued practice of the member will be dangerous or harmful to the public or the member's clients,

(b) in any other case, place conditions on the practice of a member, or

(c) suspend the enrolment of an articled student

pending final disposition of the citation under section 45 (1) or 46, and may require the member or articled student

(d) to submit to an examination by a qualified medical practitioner named by the 3 benchers, and

(e) to instruct the qualified medical practitioner to report to the discipline committee with respect to the member's ability to practise law or the articled student's ability to complete his or her articles.

(2) A member suspended under subsection (1), section 46 (1) (d), 47, 48 or 51 is not in good standing.

(3) Where an order has been made under subsection (1), the respondent may apply to

(a) the 3 benchers who made the order, or

(b) the treasurer

for rescission or variation of the order.

(4) Where an application is made under subsection (3) (a), the 3 benchers constitute a panel for the purposes of subsections (6) and (7).

(5) Where application is made under subsection (3) (b), the treasurer shall appoint a new panel under section 54.1.

(6) Where an order has been made under subsection (1) with notice to the respondent, the panel shall, on cause being shown on the balance of probabilities by or on behalf of the respondent, rescind or vary the order.

(7) Where an order has been made under subsection (1) without notice to the respondent, the panel shall rescind or vary the order unless the discipline committee shows cause, on the balance of probabilities, why the order should not be rescinded or varied.

15 Sections 45 to 49 are repealed and the following substituted:

Determination after hearing

45 (1) A panel may, after a hearing under section 41,

(a) dismiss the citation,

(b) determine that the respondent has committed one or more of the following:

(i) professional misconduct;

(ii) conduct unbecoming a member of the society;

(iii) a breach of this Act or a rule made under it;

(iv) incompetent performance of duties undertaken in the capacity of a member of the society;

(v) if the respondent is not a member, conduct that would, if the respondent were a member, constitute professional misconduct, conduct unbecoming a member of the society, or a contravention of this Act or a rule made under it, or

(c) make any other disposition of the citation that it considers proper.

(2) A panel shall give written reasons for any decision it makes under subsection (1).

Disciplinary action

46 (1) Where an adverse determination is made against a respondent other than an articled student under section 45, the panel may do one or more of the following:

(a) reprimand the respondent;

(b) fine the respondent in an amount not exceeding $20 000;

(c) impose conditions on the respondent's practice;

(d) suspend the respondent from the practice of law or from practice in one or more fields of law

(i) for a specified period of time,

(ii) until the respondent complies with an order under paragraph (f), (g), (h) or (i), or

(iii) from a specific date until the respondent complies with an order under paragraph (f), (g), (h) or (i);

(e) disbar the respondent;

(f) require the respondent to complete a remedial program to the satisfaction of the competency committee;

(g) require the respondent to appear before a board of examiners appointed by the panel or by the competency committee and satisfy the board that the respondent is competent to practise law or to practise in one or more fields of law;

(h) require the respondent to appear before a board of examiners appointed by the panel or by the competency committee and satisfy the board that the respondent's competence to practise law is not adversely affected by a physical or mental disability or dependency on alcohol or drugs;

(i) require the respondent to practise law only as a partner, employee or associate of one or more other members.

(2) In addition to its powers under subsection (1), a panel may make any other orders and declarations and impose any conditions that it considers just.

(3) Where an adverse determination is made against an articled student under section 45, the panel may do one or more of the following:

(a) reprimand the articled student;

(b) fine the articled student an amount not exceeding $2 000;

(c) extend the period which the articled student shall serve under articles;

(d) set aside the enrolment of the articled student

and may make any other further orders or declarations and impose any conditions that it considers just.

(4) The panel shall record in writing any action taken under this section and any order for costs made under section 55.

(5) A fine imposed under this section or under section 47 or 48 may be recovered as a debt owing to the society and, when collected, it is the property of the society.

Appeal to benchers from disciplinary action

47 (1) A respondent, in respect of whom action was taken under section 46 may, within 30 days after the action was taken, apply in writing to the benchers for a review.

(2) On a review under subsection (1), the benchers may confirm or decrease the severity of the action taken under section 46, after hearing the respondent and any evidence that the benchers may, in their discretion, permit the respondent to adduce.

Review by benchers

48 Where, following the hearing of a citation, the discipline committee is dissatisfied with

(a) a dismissal under section 45 (1) (a),

(b) a determination made under section 45 (1) (b) or (c), or

(c) any action taken under section 46,

the discipline committee may, within 30 days after the dismissal, determination or action has been made or taken, refer the matter to the benchers who may, after hearing further argument and any evidence that the benchers may, in their discretion permit,

(d) confirm the decision,

(e) set aside the dismissal and

(i) make a determination under section 45 (1) (b) or (c), and

(ii) take any action that the panel could have taken under section 46,

(f) set aside a determination made under section 45 (1) (b) or

(c) and dismiss the citation,

(g) with respect to a review of an action referred to in paragraph (c), increase or decrease the severity of the action taken under section 46, or

(h) refer the matter back to the panel that heard the citation with instructions.

Failure to attend

49 Where an applicant or respondent fails to attend or remain in attendance at

(a) a hearing before a panel on an application for enrolment as an articled student, call and admission or reinstatement in the society,

(b) a hearing before a panel on a citation, or

(c) a review by the benchers under section 47 or 48,

the panel or benchers, as the case may be, may, on proof of service of the citation or notice of hearing, proceed with the hearing in the absence of the applicant or respondent and make any order that it or they could have made had the applicant or respondent been there.

16 Section 51 is repealed and the following substituted:

Conviction

51 On proof that a member or former member of the society has been convicted of an offence which may only be prosecuted by way of indictment, the benchers may, without following the procedure provided for in this Part, summarily suspend or disbar the member or former member.

17 The following section is added:

Panels

54.1 (1) A panel shall consist of an odd number of persons but, subject to subsection (2), may not consist of one person.

(2) A panel may consist of one bencher who is a member of the society with the written consent of the applicant or respondent.

(3) A panel shall be chaired by a bencher who is a member of the society.

(4) All benchers and all members of the society are eligible to be appointed to a panel.

(5) Notwithstanding subsection (2), a member of a panel who ceases to be a bencher may, with the consent of the treasurer and with or without the consent of the applicant or respondent, continue to be a member of the panel and, where that person is the chair of the panel, may continue to chair the panel, and the panel may complete any hearing or hearings already scheduled or commenced.

(6) Notwithstanding subsection (2), a member of a panel who ceases to be a member of the society may, with the consent of the treasurer and with or without the consent of the applicant or respondent, continue to be a member of the panel and the panel may complete any hearing or hearings already scheduled or commenced.

(7) Two or more panels may proceed with separate matters at the same time.

(8) The treasurer may refer a matter that is before a panel to another panel, fill a vacancy on a panel and, on the advice of the executive committee, may terminate an appointment to a panel.

(9) Unless otherwise provided in this Act, a panel shall decide any matter by a majority and the decision of the majority is the decision of the panel.

18 Section 55 is amended

(a) by repealing subsection (1) and substituting the following:

(1) A panel may order that

(a) an applicant pay to the society the costs of a hearing conducted under section 35 or 36,

(b) a respondent pay to the society the costs of a hearing conducted under section 41, and

(c) a respondent pay to the society the costs of a remedial program ordered under section 46,

and may set the time for payment.

(1.1) The time for payment of costs ordered under subsection (1) may be extended on application by the person concerned to the treasurer, who shall refer the application to the same panel that made the order, to a new panel or to a committee established by this Act, as may in the treasurer's discretion appear appropriate. ,

(b) by adding the following subsection:

(2.1) The discipline committee may order that a member pay to the society the costs of an investigation or audit ordered under section 39 or 39.1 and may set and extend the time for payment. ,

(c) by repealing subsections (3) and (4) and substituting the following:

(3) The benchers may order that a respondent pay to the society the costs of a review under section 47 and may set and extend the time for payment.

(4) Where no adverse finding is made against a member, former member, applicant or articled student after a hearing under section 35, 36 or 41 or an investigation under section 37, the panel, the benchers or the competency committee, as the case may be, may order that the society pay to the member, former member, applicant or articled student, costs in an amount determined by it or them.

(4.1) Where an applicant is enrolled, called and admitted or reinstated under section 34, the credentials committee may order that the society pay to the applicant costs in an amount to be determined by the committee. , and

(d) in subsection (6) by striking out "committee or the benchers," and substituting "committee, panel or the benchers,".

19 Section 56 (2) is repealed and the following substituted:

(2) The benchers, a panel, any bencher or member of a panel and the special compensation fund committee or a committee established to conduct an inquiry under section 52 (7) and the members of that committee have the powers, protection and privileges of a commissioner under sections 12, 15 and 16 of the Inquiry Act with respect to any hearing.

20 Section 58 is repealed and the following substituted:

Appeal

58 Any

(a) applicant,

(b) respondent,

(c) member who is suspended under section 43, or

(d) member or former member who is suspended or disbarred under section 51

who is affected by any decision, determination or order of a panel or the benchers, may appeal the decision, determination or order to the Court of Appeal.

21 Sections 80 to 84 are repealed and the following substituted:

Interpretation

80 In this Part

"law corporation" means a corporation that holds a valid permit;

"permit" means a permit issued under section 82 (1) and includes a permit and a renewal of a permit issued to a law corporation or personal law corporation before the amendment of this Part by the Legal Profession Amendment Act, 1992.

Right of corporation to provide legal services

81 (1) A law corporation may carry on the business of providing legal services to the public through one or more persons each of whom is

(a) a member of the society, or

(b) subject to the provisions of this Act and the rules made under it, a person referred to in section 26 (1) (c), (2),

(3) or (4) who is an employee of the law corporation.

(2) A partnership consisting of law corporations or of one or more members and one or more law corporations may carry on the business of providing legal services to the public through one or more persons, each of whom is a person described in subsection (1).

Corporate permit

82 (1) The secretary shall issue a permit to a corporation that is a company, as defined in the Company Act, and that is in good standing under that Act or that is registered under Part 10 of the Company Act, where the secretary is satisfied that

(a) the name of the corporation includes the words "law corporation",

(b) all of the voting shares are legally and beneficially owned by a member or members, or by one or more law corporations, or both,

(c) all of the non-voting shares are legally and beneficially owned by one or more persons, each of whom is

(i) a member,

(ii) a law corporation that is a voting shareholder,

(iii) any other person who is a relative of or resides with a member who is a shareholder or who is a shareholder in a law corporation which is a shareholder,

(iv) a corporation, all the shares of which are beneficially owned by one or more of the individuals referred to in either of subparagraph (i) or (iii), or

(v) a trust, where all the beneficiaries are one or more of the individuals referred to in either of subparagraph (i) or (iii),

(d) all of the directors of the corporation are members of the society, and

(e) all of the persons who will be practising law on behalf of the corporation are persons described in section 81 (1).

(2) The secretary may refuse to issue a permit under subsection (1) where

(a) the law corporation has previously had its permit revoked, or

(b) a shareholder of the law corporation was a shareholder of a law corporation or personal law corporation that previously had its permit revoked.

Prohibition against carrying on business

83 (1) A corporation that has the words "law corporation" as part of its name shall not carry on any business unless it holds a valid permit.

(2) A law corporation that holds a permit shall not carry on any activities, other than the provision of legal services or services that are directly associated with the provision of legal services.

(3) Nothing in subsection (2) shall be interpreted to prohibit the law corporation from investing its funds in real estate, personal property, mortgages, stocks, bonds, insurance or any other types of investments.

(4) No act of a corporation, including a transfer of property to or by the corporation, is invalid by reason only that it contravenes subsections (1) to (3).

Voting agreements prohibited

84 No shareholder of a law corporation shall enter into a voting trust agreement, proxy or any other type of agreement vesting in another person who is not a member of the society or a law corporation the authority to exercise the voting rights attached to any or all of the shares.

22 Section 85 is amended

(a) by repealing subsections (1) and (2) and substituting the following:

(1) The liability for professional negligence of any member carrying on the practice of law is not affected by the fact that the member is carrying on that practice as an employee and on behalf of a law corporation.

(2) The relationship of a member of the society, whether as a shareholder, director, officer or employee, to a law corporation does not affect, modify or diminish the application to the member of the provisions of this Act and the rules made under it. ,

(b) in subsection (4) by striking out "or personal law corporation", and

(c) by repealing subsection (5) and substituting the following:

(5) All rights and obligations pertaining to professional communications made to or information received by a member, or in respect of any advice given by a member, apply to a law corporation and its shareholders, directors, officers, employees and contractors.

(6) An undertaking given by or on behalf of a law corporation that, if given by a member, would constitute a solicitor's undertaking is deemed to be a solicitor's undertaking given by the member of the society who gives, signs or authorizes it.

23 Sections 86 to 89 are repealed and the following substituted:

Revocation of permits

86 (1) A panel may, after a hearing in accordance with rules made under section 87, revoke the permit issued to a law corporation where

(a) in the course of providing legal services the corporation does anything that would, if done by a member, be professional misconduct or conduct unbecoming a member of the society,

(b) the corporation contravenes this Act or a rule made under it, or

(c) the corporation ceases to comply with a condition of qualification referred to in section 82 or a condition under section 87 (2) (c) or (3).

(2) A panel may, rather than revoking a permit under subsection (1), do one or more of the following:

(a) reprimand one or more of the shareholders of a law corporation;

(b) impose a fine on the law corporation in an amount not exceeding $20 000;

(c) impose conditions or limitations under which the law corporation may continue to provide legal services to the public.

(3) The secretary shall inform the Registrar of Companies of the revocation of any permit under this section.

(4) All shareholders, directors, officers and employees of and contractors to a law corporation may be

(a) compelled to give evidence at a proceeding under this Part or under Part 6, or

(b) required to produce all files and records that are in their possession or control that are relevant to matters raised in the proceeding.

Rules

87 (1) The benchers may make rules that they consider necessary or advisable for the purposes of this Part.

(2) Without limiting subsection (1), the benchers may make rules

(a) respecting the issuance and renewal of permits, including

(i) the establishment of a procedure to obtain a permit and a renewal of a permit, and

(ii) fixing fees for the obtaining of a permit or a renewal of a permit,

(b) respecting procedures for revocation of permits, including

(i) the adaptation, in a manner that the benchers consider necessary or advisable, of rules respecting practice and procedure in hearings before a panel, and

(ii) rules to permit a panel to consider action under section 86 as part of a hearing under section 41 on a citation issued against a member or former member who is or was a shareholder, director, officer or employee of a law corporation,

(c) fixing conditions that may be attached to permits that are issued or renewed under this Part,

(d) respecting names and the approval of names including the types of names by which

(i) a law corporation,

(ii) a partnership consisting of one or more law corporations and one or more members of the society,

(iii) a partnership consisting of law corporations, or

(iv) a law corporation having shareholders that consist of one or more law corporations, one or more members of the society, or both, may be known, and

(e) respecting the disposition of shares of a shareholder of a law corporation who

(i) ceases to be a member of the society, or

(ii) remains a member of the society but is not qualified to practise law.

(3) The benchers may, as a condition of issuing or renewing a permit, fix an amount of insurance that the holder of the permit must carry, or must provide to each of its employees or contractors, for the purpose of providing indemnity against professional liability claims.

(4) The amount fixed under subsection (3) is in excess of any amount that must be carried by a member of the society under a requirement under section 24 (2) (l), and the amount that may be fixed under subsection (3) may be different for different permit holders, at the discretion of the benchers.

Non-payment of fees

88 When a law corporation has not paid the renewal fee fixed by the benchers under section 87 (2) (a) by the date it is due, the permit ceases to be valid and the corporation shall

(a) immediately surrender its permit to the society, and

(b) cease providing legal services to the public.

Application of other provisions

89 (1) The benchers may, in respect of corporations holding permits under this Part, exercise their powers in section 24 (2), (h), (p), (q), (r) and (w) in relation to those corporations.

(2) Sections 31, 32, 39 (4) to (6), 39.1, 47, 48, 50, 52, 53, 55 (1), (1.1), (2.1) and (4) to (6), 56, 58 to 62 and 67 to 79 apply to law corporations.

(3) The rules under section 25 (2) (g), (h), (i) and (j) apply to law corporations.

24 Section 94 is repealed and the following substituted:

Certain matters privileged

94 (1) In this section

"proceeding" does not include a proceeding under Part 6;

"report" includes all documents, minutes, notes, correspondence and memorandums created or received by a person, committee, panel or agent of the society in the course of an investigation, audit, inquiry or hearing, but does not include original documents which belong to a complainant or respondent or to a person other than an employee or agent of the society.

(2) Where a person has made a complaint to the society respecting a member, former member or articled student, neither the society nor the complainant may be required to disclose or produce the complaint and the complaint is not admissible in any proceeding, except with the written consent of the complainant.

(3) Where a member, former member or articled student responds to the society in respect of a complaint or investigation, neither the member, former member or articled student nor the society may be required to disclose or produce the response or any copy or summary of it and the response or any copy or summary of it is not admissible in any proceeding, except with the written consent of the member, former member or articled student, notwithstanding that the secretary may have delivered a copy or a summary of the response to the complainant.

(4) Where a person, committee or panel acting under the authority of this Act, makes a report or conducts an investigation, audit, inquiry or hearing into the conduct, competence or credentials of a member or former member or articled student, that report shall not be required to be produced and is not admissible in any proceeding except with the written consent of the secretary.

(5) Neither the society, its employees or agents, or persons who are members of committees or panels established or authorized under this Act shall be compelled to testify in any proceeding or to disclose information to which they may have become privy during the course of an investigation, audit, inquiry or hearing.

(6) A person who, during the course of an investigation under this Act, acquires information or records that are confidential or subject to solicitor and client privilege, shall not disclose that information or those records to any person except for a purpose contemplated by this Act or the rules made under it.

25 Section 96 (b) is amended by adding "or 94 (6)" after "section 57 (3)".

Commencement

26 This Act comes into force by regulation of the Lieutenant Governor in Council.


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