(1) An appointment of an external intervener is subject to:(a) any conditions imposed by the appropriate authority, and(b) any conditions imposed by or under the regulations.(2) The appropriate authority may impose conditions:(a) when the appointment is made, or(b) during the term of the appointment.(3) The appropriate authority may revoke or vary conditions imposed under subsection (2).(4) In this section:
appropriate authority means:(a) the Law Society Council for appointments made by the Council, or(b) the Supreme Court for appointments made by the Court.
(1) An act done or omitted to be done by an external intervener for a law practice is, for the purposes of:(a) any proceeding, or(b) any transaction that relies on that act or omission,taken to have been done or omitted to be done by the practice.(2) Nothing in this section subjects an associate of the law practice to any personal liability.
A person who has been appointed as an external intervener for a law practice is eligible for re-appointment as an external intervener for the practice, whether the later appointment is made in respect of the same type of external intervention or is of a different type.
(1) The following persons may appeal against the appointment of a supervisor or manager in relation to a law practice:(a) the practice,(b) an associate of the practice,(c) any person authorised to operate a trust account of the practice,(d) any other person whose interests may be adversely affected by the appointment.(2) The appeal is to be lodged within 7 days after notice of the appointment is served on:(a) the person who proposes to appeal, or(b) the law practice, if a notice is not required to be served on the person who proposes to appeal.(3) The Supreme Court may make any order it considers appropriate on the appeal.(4) The appointment of a supervisor or manager is not stayed by the making of an appeal, and the supervisor or manager may accordingly continue to exercise his or her powers and functions as supervisor or manager during the currency of the appeal except to the extent (if any) that the Supreme Court otherwise directs.Note. Appeals about the appointment of receivers lie if and as provided under the Supreme Court Act 1970.
The Supreme Court may, on application by:(a) an external intervener for a law practice, or(b) a principal of the practice, or(c) any other person affected by the external intervention,give directions in relation to any matter affecting the intervention or the intervener’s powers, duties or functions under this Act.
If a manager and a receiver are appointed for a law practice, any decision of the receiver prevails over any decision of the manager in the exercise of their respective powers, to the extent of any inconsistency.
(1) An ADI must, at the request of an external intervener for a law practice, disclose to the intervener without charge:(a) whether or not the practice, or an associate of the practice specified by the intervener, maintains or has maintained an account at the ADI during a period specified by the intervener, and(b) details identifying every account so maintained.
Maximum penalty: 50 penalty units.(2) An ADI at which an account of a law practice or associate of a law practice is or has been maintained must, at the request of an external intervener for the law practice, and without charge:(a) produce for inspection or copying by the intervener, or a nominee of the intervener, any records relating to any such account or money deposited in any such account, and(b) provide the intervener with full details of any transactions relating to any such account or money.
Maximum penalty: 50 penalty units.(3) If an external intervener believes, on reasonable grounds, that trust money has, without the authorisation of the person who entrusted the trust money to the law practice, been deposited into the account of a third party who is not an associate of the law practice, the ADI at which the account is maintained must disclose to the intervener without charge:(a) whether or not a person specified by the intervener maintains or has maintained an account at the ADI during a period specified by the intervener, and(b) the details of any such account.
Maximum penalty: 50 penalty units.(4) An obligation imposed by this section on an ADI does not apply unless the external intervener produces to the ADI evidence of the appointment of the intervener in relation to the law practice concerned.(5) A request under this section may be general or limited to a particular kind of account.(6) This section applies despite any legislation or duty of confidence to the contrary.(7) An ADI or an officer or employee of an ADI is not liable to any action for any loss or damage suffered by another person as a result of producing records or providing details in accordance with this section.
(1) An external intervener is entitled to be paid:(a) fees by way of remuneration, and(b) the legal costs and the expenses incurred in relation to the external intervention,in accordance with the instrument of appointment.(2) An account of the external intervener for fees, costs and expenses may, on the application of the Law Society, be assessed under Part 3.2 (Costs disclosure and assessment).(3) The fees, costs and expenses are payable by and recoverable from the law practice.(4) Fees, costs and expenses not paid to the external intervener by the law practice are payable from the Public Purpose Fund.(5) The Law Society Council may recover any unpaid fees, costs and expenses from the law practice.(6) Fees, costs and expenses paid by or recovered from the law practice after they have been paid from the Public Purpose Fund are to be paid to the Fund.
(1) An external intervener must provide written reports in accordance with any reporting requirements to be observed by the intervener as specified in the instrument of appointment.(2) If the instrument of appointment does not specify any reporting requirements, an external intervener must provide:(a) written reports as required from time to time by the Law Society Council, and(b) a written report to the Law Society Council at the termination of the appointment.(3) An external intervener must also keep the Law Society Council informed of the progress of the external intervention, including reports to the Law Society Council about any significant events occurring or state of affairs existing in connection with the intervention or with any of the matters to which the intervention relates.(4) Nothing in this section affects any other reporting obligations that may exist in respect of the law practice concerned.
If an external intervener becomes aware of any matter in the course of an external intervention that the external intervener thinks may be unsatisfactory professional conduct or professional misconduct on the part of an Australian legal practitioner or Australian-registered foreign lawyer, the external intervener must (unless the matter is or has already been the subject of a complaint under Chapter 4) refer the matter to the Commissioner to consider whether disciplinary action should be taken against an Australian legal practitioner or Australian-registered foreign lawyer.
(1) An external intervener must not disclose information obtained as a result of his or her appointment except:(a) so far as is necessary for exercising his or her powers or functions,(b) as provided in subsection (2).(2) An external intervener may disclose information to any of the following:(a) any court, tribunal or other person acting judicially,(b) a regulatory authority of any jurisdiction,(c) any officer of or Australian legal practitioner instructed by:(i) a regulatory authority of any jurisdiction, or(ii) the Commonwealth or a State or Territory of the Commonwealth, or(iii) an authority of the Commonwealth or of a State or Territory of the Commonwealth,in relation to any proceedings, inquiry or other matter pending or contemplated arising out of the investigation or examination,(d) a member of the police force of any jurisdiction if the external intervener believes on reasonable grounds that the information relates to an offence that may have been committed by the law practice concerned or by an associate of the law practice,(e) the law practice concerned or a principal of the law practice or, if the practice is an incorporated legal practice, a shareholder in the practice,(f) a client of the law practice concerned if the information relates to the client,(g) another external intervener appointed (or formerly appointed) in relation to the law practice or carrying out (or who formerly carried out) an external examination of the trust records of the law practice concerned,(h) any Australian legal practitioner or accountant employed by the external intervener or by another external intervener referred to in paragraph (g).
No liability attaches to the Law Society or Law Society Council or a person appointed as an external intervener for a law practice for any act or omission by the external intervener done in good faith and in the exercise or purported exercise of the external intervener’s powers or duties under this Act.