Ceasing a Legal Practice

 

This may occur upon:

  • Retirement / Closure of a sole-practice;

  • Closure of a partnership practice;

  • Retirement / Withdrawal of a partner from a two-man partnership;

  • Amalgamation of 2 existing law firms;

  • Existing law firm being dissolved and partners creating two or more new law firms.

  • Closure of law firm and formation of a law corporation.

 

Please comply with the following directions upon cessation of your law practice.

 

 

A. NOTIFICATION

 

1. Notification to the Law Society

 

The Law Society will recommend that you inform the Law Society at least 4 weeks prior to cessation of your intention to cease your law practice.

 

Complete the "Cessation of Practice" form - LF4 (Annex A) and submit it to the Law Society and send a copy of the form to Lockton Companies (Singapore) Pte Ltd ( the Society's Professional Indemnity broker).

 

2. Written Notification to the Registrar, Supreme Court

 

Notify the Registrar, Supreme Court of the cessation of your practice.

 

Notify the Registrar, Supreme Court of the cessation of your practice by completing the "Notice of Change of Particulars" online form. Please note that upon submitting the online Notice, you are required to fax a copy of the Notice to Lockton Companies (Singapore) Pte Ltd. at 6225 0682 (Attn: Wendy Wee).

 

Refund of premium paid for Professional Indemnity insurance

 

Members who have ceased practice and who wish to apply for a refund of the premium paid for the Professional Indemnity insurance will have to comply with the following requirements with effect from 1 May 2008:

 

  • Confirm in writing, by letter addressed to Lockton Companies (Singapore) Pte Ltd that :

    • you have duly notified the Registrar, Supreme Court and The Law Society of your cessation from practice; and

    • that you are therefore requesting a refund of the premium paid for your Professional Indemnity insurance.

  • This letter must be copied to The Law Society.

 

Please be reminded that as stipulated in the Scheme policy, all requests for refunds must be made in writing to Lockton Companies (Singapore) Pte Ltd not later than six months from the expiry of the Policy. The Scheme Insurers will not accept requests for refunds made after the 6 month period.

 

4. Notification to Clients

 

General Rules

 

Notify your clients of the cessation of your practice.

 

Rule 44 of the Legal Profession (Professional Conduct) Rules enacts as follows:

  • 44(1) - When a firm is dissolved, the solicitor and client relationship between the client and the advocate and solicitor in charge of his matter shall terminate.

  • 44(2) - The final decision of which advocate and solicitor shall be appointed to take over the matter shall rest with the client.

 

Clients must be informed in writing about the monies held in the practice's client's account and possession of any client's documents or property.

 

Notification to Client if there is a successor law practice:

 

Money can only be transferred to the client's account of the successor law practice with the consent of the client.

 

Any transfer of client's property can also be done with the client's consent.

 

Notification to Client if there is NO successor law practice:

 

  • All clients' monies must be returned to your clients.

  • If monies are to be utilized for payment of any outstanding costs under a delivered bill of costs, you must comply with the following Practice Direction of the Council:

    • Write to your client informing him of the transfer of the amount in payment of a bill

    • Inform the client that he/she has 2 days from receipt of your letter to inform you if he/she objects to the bill, failing which the money will be transferred from the client's account to the office account.

  • If you cannot trace your client, advertise the cessation of your practice. If it is still impossible to trace your client, make an application to the Council of the Law Society for directions pursuant to Rule 11(7) of the Legal Profession (Solicitors' Accounts) Rules.

  • A specimen letter of notification to clients on dissolution of a law practice is appended here.

 

 

B. ACCOUNTANT'S REPORT

 

You are under an obligation to deliver your final accountant's report pursuant to Rule 8(2) of the Legal Profession (Accountant's Report) Rules.

 

The accounting period ends on the date you cease to hold or receive client's money. For a format of your report, please refer to The Schedule, to the Legal Profession (Accountant's Report) Rules or visit the Law Society's web portal and click on the icon "Practising Certificate" for further information.

 

 

C. PRESERVATION OF BOOKS OF ACCOUNTS

 

Under Rule 11(6) of the Legal Profession (Solicitors' Accounts) Rules, you must preserve for at least six years your books of accounts, ledgers and records of your former practice.

 

 

D. PRESERVATION OF FILES

 

The Council's Practice Direction on Preservation of Files are as follows:

 

Destruction of old files:

 

Matter

 No. of Years After Completion of Matter before File may be Destroyed
Conveyancing (acting for purchaser) 12
Conveyancing (acting for vendor on sale of
the whole title)		 12
Conveyancing (acting for vendor who retains
part of the title)		 12
Common law matters 6
Probate & Administrations where whole estate
is wound up and distributed		 3
Matrimonial matters where no continuing
obligations exist or from determination of
such obligations		 6
Company formations or similar matters 6
Other matters 1

 

 

E. OUTSTANDING PROFESSIONAL FEES AND UNDERTAKINGS

 

Your liability including that of your co-partners or former partners for outstanding professional fees and professional undertakings will continue. It is not cancelled by cessation of your practice

 

 

F. PRACTISING CERTIFICATE

 

If you are retiring from practice or are ceasing practice, your Practising certificate will lapse pursuant to section 26(9) of the Legal Profession Act (Cap. 161), 2001 Revised Edition, from the date of your retirement/cessation.

 

You will then cease to be a practitioner member of the Law Society.

 

You may, however, apply for non-practitioner membership from the Society.