SOLICITORS' PRACTICE RULES

SOLICITORS' PRACTICE RULES

SOLICITORS' PRACTICE RULES
(Cap. 159, section 73)

[1 August 19641L.N. 107 of 1964

L.N. 104 of 1972, L.N. 124 of 1974, L.N. 307 of 1979, 52 of 1980, L.N. 273 of

1980, L.N. 393 of 1987, R. Ed. 1987, L.N. 154 of 1989, L.N. 363 of
1989

1. Citation

These rules may be cited as the Solicitors' Practice Rules.

2. Prohibition against touting, etc.

(1) Subject to subrule (2), a solicitor shall not obtain or attempt to obtain
professional business by

(a)directly or indirectly without reasonable justification inviting
instructions for such business;

(b)doing or permitting to be done without reasonable justification
anything which by its manner, frequency or otherwise advertises his
practice as a solicitor; or

(c)doing or permitting to be done anything which may reasonably be
regarded as touting. (L.N. 157 of 1972)

(2) A solicitor may publicise his practice in accordance with the Solicitors'
Publicity Code as made from time to time by the Council with the prior approval of
the Chief Justice. (L.N. 363 of 1989)

2A. Prohibition of use on nameplate or stationery of

name other than name of a solicitor

A solicitor shall not permit to appear on his nameplate or to be printed on his
professional stationery the name of any person other than a solicitor:

Provided that this rule shall not preclude-
(a)the appearance in the style or name of a solicitor's practice of the name
of a predecessor or former partner in that practice; or

(b) the use of a style or firm name-

(i) in use at the date of the coming into operation of this rule; or

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(ii) approved in writing by the Council. (52 of 1980 s. 2)
(L.N. 124 of 1974)

3. Fee cutting

A solicitor shall not hold himself out or allow himself to be held out directly or
indirectly and whether or not by name as being prepared to do





professional business in contentious matters at less than the scale fixed by Rules of
Court or by any other enactment or in any other matters at less than such scale as
may from time to time be fixed by any enactment or by the Society.

4. Sharing with non-qualified persons

A solicitor shall not share or agree to share with any person not being a
solicitor practising in the Colony, or a solicitor or other duly qualified legal agent
practising in the United Kingdom or in some other part of the Commonwealth, his
profit costs in respect of any business whether by way of paying or agreeing to pay
a commission on business introduced by any such person not being a solicitor, or
otherwise:

Provided that-

(a)solicitor carrying on practice on his own account may agree to pay an
annuity or other sum out of profits to a retired partner or predecessor
or the dependants or legal personal representative of a deceased
partner or predecessor; and

(b)a solicitor who has agreed in consideration of a salary to do the legal
work of an employer who is not a solicitor may agree with such
employer to set off his profit costs received in respect of contentious
business from the opponents of such employer or the costs paid to
him as the solicitor for such employer by third parties of non-
contentious business, against the salary so paid or payable to him
and the reasonable office expenses incurred by such employer in
connection with such solicitor and to the extent of such salary and
expenses.

4A. Supervision of office

A solicitor shall ensure that every office where he or his firm practise is and can
reasonably be seen to be properly supervised in accordance with the following
minimum standards

(a)every such office shall be managed by a solicitor holding a practising
certificate who shall normally be in attendance at that office during all
the hours when it is open to the public; and

(b)every such office shall be attended on each day when it is open to the
public by a solicitor who holds a practising certificate and has been
admitted for at least 2 years, being either a principal of, or a solicitor
employed by, the firm and who shall spend sufficient time at such
office to ensure adequate control of the staff employed there and
afford requisite facilities for consultation with clients.

(L.N. 307 of 1979)





5. Return of employees

(1) A solicitor who has or who has had, in his employment personally or
in partnership with another solicitor any clerk, interpreter or other employee
(excluding any employee who is a solicitor) shall once a year at the same time as
he applies for his practising certificate furnish to the Secretary to the Council a
declaration in accordance with Form 1 in the Schedule. (52 of 1980 s. 2)
(2) Except upon formal resolution of the Council, the particulars
furnished under subrule (1) shall not be disclosed by the Secretary to the
Council to any person other than the President, the Vice-President and the
executive staff of the Council. (52 of 1980 s. 2)
(3) Where 2 or more solicitors are in partnership as solicitors the
particulars under subrule (1) may be furnished by one partner on behalf of the
other partners.
(L.N. 307 of 1979)

SA. (Repealed L.N. 393 of 1987)

5B. Powers of Council

(1) In order to ascertain whether the provisions of these rules have been
complied with, the Council, acting either-
(a) on its own motion; or
(b) on a written complaint lodged with it by a third party,
may require any solicitor to produce at such time and place as may be fixed by
the Council, his books of account, bank pass books, loose-leaf bank statements,
statements of account, vouchers and any other necessary documents for the
inspection of any person appointed by the Council, and such person shall be
directed to prepare for the information of the Council a report on the result of
such inspection and any such report may be used as a basis for proceedings
under the Ordinance.
(2) Upon being required so to do a solicitor shall produce such books of
account, bank pass books, loose-leaf bank statements, statements of account,
vouchers and documents at the time and place fixed.
(3) Before instituting an inspection on a written complaint lodged with it
by a third party, the Council shall require prima facie evidence that a ground of
complaint exists, and may require the payment by such party to the Council of
a reasonable sum to be fixed by it to cover the costs of the inspection, and the
costs of the solicitor against whom the complaint is made and the Council may
deal with any sum so paid in such manner as it thinks fit.
(4) The Council may make such order for the payment of the costs of any
inspection required by the Council under this rule as it thinks fit.
(L.N. 307 of 1979; 52 of 1980 s. 2)





5C. Representation in conveyancing transactions

(1) Subject to subrules (2), (3), (4) and (5), a solicitor, or 2 or more
solicitors practising in partnership or association, shall not act for both the
vendor and the purchaser on a sale or other disposition of land for value.
(2) A solicitor, or 2 or more solicitors practising in partnership or
association, may act for both the vendor and the purchaser in the sale and
purchase of a unit or other interest in an uncompleted development in respect
of which the consent of the Registrar General (Land Officer) is required to be
given pursuant to the relevant Crown Grant and also in the completion of such
sale and purchase.
(3) A solicitor, or 2 or more solicitors practising in partnership or
association, may act for both the vendor and the purchaser in the sale and
purchase of a unit or other interest in an uncompleted development in respect
of which the consent of the Registrar General (Land Officer) is not required and
also in the completion of such sale and purchase if and only if-
(a)he, or one of them, has deposited in the Land Office or a District
Land Office a statutory declaration-
(i)in such form, and setting forth such facts, as the Council
may, subject to the prior approval of the Chief Justice, from
time to time specify; and
(ii)annexed to which are such documents as the Council may,
subject to the prior approval of the Chief Justice, from time
to time specify as documents to be so annexed; and
(b)the agreement for sale and purchase to be entered into by the
vendor and the purchaser contains such clauses as the Council
may, subject to the prior approval of the Chief Justice, from time
to time specify for mandatory inclusion in the agreement.
(4) A solicitor, or 2 or more solicitors practising in partnership or
association, may act for both the vendor and the purchaser in the sale and
purchase of a unit or other interest in a completed development by the owner of
the whole development where in respect of the unit or interest no assignment
has been executed since the date of the occupation permit or the certificate of
compliance in respect of the development, whichever is required in respect of
such sale and purchase, and if both are required, the earlier, and in the
completion of such sale and purchase, if and only if the agreement for sale and
purchase to be entered into by the vendor and the purchaser contains such
clauses as the Council may, subject to the prior approval of the Chief Justice,
from time to time specify for mandatory inclusion in the agreement.

(5) Where pursuant to subrule (2), (3) or (4), a solicitor or 2 or more
solicitors practising in partnership or association act for both the vendor and
the purchaser in the sale and purchase of a unit or other interest in a
development, that solicitor or solicitors may also act for the purchaser and





the sub-purchasers in the sub-sale and sub-purchase of the unit or interest and
in the completion of the sub-sale and sub-purchase if and only if the agreement
or agreements for sub-sale and sub-purchase to be entered into by the parties
contain such clauses as the Council may, subject to the prior approval of the
Chief Justice, from time to time specify for mandatory inclusion in such
agreement or agreements.
(6) This rule shall not apply-
(a) if the parties are associated parties;
(b)to a sale or other disposition of land the consideration of which
does not exceed $250,000 or such other amount as the Council
may, subject to the prior approval of the Chief Justice, from time
to time determine, and in respect of which there is no conflict of
interest;
(c) to a mortgage of land;
(d) to a lease of land; or
(e)to a sale or other disposition of land in respect of which the
contract for sale and purchase was entered into before the
commencement of the Solicitors' Practice (Amendment) Rules
1989 (L.N. 154 of 1989).
(7) In this rule-
,,associated parties' means 2 parties where-
(a) one party is the holding company of the other party; or
(b)one party is the subsidiary of the other party's holding company;
or
(c) the parties are related by blood, adoption or marriage,
and for the purpose of this definition, 'holding company' and
'subsidiary' have the same meanings as in the Companies Ordinance
(Cap. 32);
,,association' refers to a situation where 2 or more firms of solicitors have at
least one common solicitor;
'completed development' includes a development-
(a)in respect of which a temporary occupation permit or an
occupation permit has been issued under section 21(2) of the
Buildings Ordinance (Cap. 123) after 16 August 1945, or which
was completed after 16 August 1945; and
(b)in respect of which, where a certificate of compliance is
applicable, such certificate has been issued or deemed to have
been issued, or the requisite consent to assign has been obtained
from the Land Officer;
'land' and 'mortgage' have the same meanings as in the Conveyancing and
Property Ordinance (Cap. 219);
'lease' includes an original or derivative under-lease and an agreement for a
lease;





'uncompleted development' includes a development-

(a)in respect of which neither a temporary occupation permit nor an
occupation permit has been issued under section 21(2) of the
Buildings Ordinance (Cap. 123); or

(b) which is otherwise uncompleted; or

(c)in respect of which a certificate of compliance where applicable has
not been issued or deemed to have been issued.

(L.N. 154 of 1989)

6. Power of waiver

The Council shall have power to waive in writing any of the provisions of these
rules in any particular case or cases, either unconditionally or subject to such
conditions as the Council may think fit to impose. (52 of 1980 s. 2)

SCHEDULE

FORM 1 [rule 51

SOLICITORS' PRACTICE RULES

PARTICULARS RELATING TO EMPLOYEES

To: The Secretary to the Council of The Law Society.

1 . .................of ..................(a),

hereby declare as follows-

1. 1 am engaged in (b)

2.The particulars of every clerk, interpreter or other employee (excluding an employee
who is a solicitor) who is or has been in the firm's employment within the 12 months
immediately preceding the making of this declaration are to the best of my knowledge
and belief as set out on the annex hereto and marked 'Particulars of Employees'.

Declared at Hong Kong this .......day of 19

Before me
.................................................... A
Commissioner, etc./Justice of the Peace.

Particulars of Employees (C)

Date of Monthly Date
Name Birth PositionSalary BonusesBonus
Paid





This is the annex marked 'Particulars of Employees' referred to (d) in the declaration of

. .......... made before me at

Hong Kong g** this h** s** day of
19

A Commissioner ... m ... m' etc./Justice of ...
of the Peace. ... Peace. .....

Notes:
(a) Names as they appear on the roll of solicitors, with the addition of any titles, etc.
(b) State whether in private practice on your own account or in partnership, etc.
(e) Continue on ~ate sheet if necessary If bonuses are cot paid write 'Nil'.
(d) To be completed by the person before whom declaration is made.

(L.N. 307 of 1979; 52 of 1980 s. 2; L.N. 393 of 1987)

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