House of Commons Public Bill Committee Proceedings

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Public Bill Committee Proceedings: 21st June 2007
30

Legal Services Bill [Lords], continued

Clause, as amended, Agreed to.

Clauses 91 to 102 Agreed to.

Bridget Prentice

Agreed to  184

Schedule  14,  page  214,  line  35,   leave out paragraph (b).

Schedule, as amended, Agreed to.

Clause 103 Agreed to.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Withdrawn  296

Clause  104,  page  56,  line  30,  after ‘body’, insert ‘which is not licensed by the Law

Society’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  297

Clause  104,  page  56,  line  33,  after ‘body’, insert ‘which is not licensed by the

Council for Licensed Conveyancers’.

Clause Agreed to.

Bridget Prentice

Agreed to on division  115

Clause  105,  page  57,  line  5,  leave out ‘a’ and insert ‘an independent’.

Bridget Prentice

Agreed to  116

Clause  105,  page  57,  line  7,  leave out second ‘a’ and insert ‘an independent’.

Clause, as amended, Agreed to.

Bridget Prentice

Agreed to  117

Clause  106,  page  57,  line  10,  leave out ‘a’ and insert ‘an independent’.

Public Bill Committee Proceedings: 21st June 2007
31

Legal Services Bill [Lords], continued

Bridget Prentice

Agreed to  118

Clause  106,  page  57,  line  36,  leave out ‘in shares’ and insert ‘or an indirect

interest’.

Clause, as amended, Agreed to.

Clause 107 Agreed to.

Mr David Kidney

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Withdrawn  271

Clause  108,  page  59,  line  4,  leave out subsection (2) and insert—

‘(2)
The management condition is that—

(a)
the number of managers of the body who are non-authorised persons is

less than 10% of the total number of managers; or

(b)
the managers who are non-authorised persons who provide services

directly or indirectly to clients within their own professional training, are

members of one or more recognised professional bodies.’.

Mr David Kidney

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  272

Clause  108,  page  59,  line  6,  leave out subsection (3) and insert—

‘(3)
The ownership condition for B satisfying the management condition set out in

subsection (2) is that—

(a)
the proportion of shares in B in which non-authorised non managers have

an interest is less than 10%, and

(b)
the proportion of the voting power in B which non-authorised non

managers are entitled to exercise, or control the exercise of, is less than

10%, and

(c)
if B has a parent undertaking (“P”)—

(i)
the proportion of shares in P in which non-authorised non-

managers have an interest is less than 10%, and

(ii)
the proportion of the voting power in P which non-authorised

non-managers are entitled to exercise, or control the exercise of,

is less than 10%.

Bridget Prentice

Agreed to  119

Clause  108,  page  59,  line  7,  leave out ‘in which non-authorised persons have an

interest’ and insert ‘held by non-authorised persons’.

Bridget Prentice

Agreed to  120

Clause  108,  page  59,  line  9,  leave out ‘power’ and insert ‘rights’.

Public Bill Committee Proceedings: 21st June 2007
32

Legal Services Bill [Lords], continued

Bridget Prentice

Agreed to  121

Clause  108,  page  59,  line  12,  leave out ‘in which non-authorised persons have an

interest’ and insert ‘held by non-authorised persons’.

Bridget Prentice

Agreed to  122

Clause  108,  page  59,  line  14,  leave out ‘power’ and insert ‘rights’.

Mr David Kidney

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  273

Clause  108,  page  59,  line  16,  at end insert—

‘(3A)
The ownership condition for B satisfying the management condition set out in

paragraph 2(b) is that shares and voting power in B are only held by authorised

persons or members of recognised professional bodies.’.

Mr David Kidney

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  274

Clause  108,  page  59,  line  19,  at end insert—

‘“recognised professional body” means a body (other than an approved

regulator), incorporated by Royal Charter, which makes provision for—

(a)
testing the competence of those seeking admission to

membership of the body as a condition for such admission; and

(b)
imposing and maintaining professional and ethical standards for

its members, as well as imposing sanctions for non-compliance

with those standards.’.

Bridget Prentice

Agreed to  123

Clause  108,  page  59,  leave out lines 20 to 23.

Mr David Kidney

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  275

Clause  108,  page  59,  line  23,  at end add—

‘(5)
For the purposes of subsection (4)—

“member” means a member or member firm as defined by the appropriate

rules of such a body.’.

Clause, as amended, Agreed to.

Clauses 109 and 110 Agreed to.

Public Bill Committee Proceedings: 21st June 2007
33

Legal Services Bill [Lords], continued

Bridget Prentice

Agreed to  124

Clause  111,  page  60,  line  21,  leave out ‘in shares’.

Bridget Prentice

Agreed to  125

Clause  111,  page  60,  line  24,  leave out sub-paragraph (ii) and insert—

‘(ii)
are bodies in which persons within paragraphs (a) to (c) are

entitled to exercise, or control the exercise of, more than 90% of

the voting rights.’.

Clause, as amended, Agreed to.

Clause 112 Agreed to.

John Mann

Withdrawn  283

Clause  113,  page  61,  line  35,  at end add—

‘(6)
Nothing in this Part is intended to prevent an application to the Solicitors’

Compensation Fund for redress in respect of a determination by an ombudsman

with which a solicitor respondent is unable or unwilling to comply.’.

Clause Agreed to.

Clause 114 Agreed to.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Withdrawn  300

Schedule  15,  page  222,  line  35,  leave out sub-paragraph (2).

Bridget Prentice

Agreed to  42

Schedule  15,  page  224,  line  29,  at end insert—


‘The terms of appointment of the chairman or any other member may provide

for the Board to pay, or make payments towards the provision of, a pension,

allowance or gratuity to or in respect of that person.


If the Board thinks there are circumstances that make it right for a person

ceasing to hold office as chairman or another member to receive compensation,

the OLC may pay that person such compensation as the Board may

determine.’.

Bridget Prentice

Agreed to  43

Schedule  15,  page  224,  line  42,  at end insert—

Public Bill Committee Proceedings: 21st June 2007
34

Legal Services Bill [Lords], continued


‘The OLC may pay compensation for loss of employment to or in respect of an

ombudsman (or former ombudsman), or a member (or former member) of staff

appointed under paragraph 11.’.

Simon Hughes

John Hemming

Withdrawn  227

Schedule  15,  page  226,  line  15,  leave out paragraphs 21 and 22.

Schedule, as amended, Agreed to.

Clauses 115 to 120 Agreed to.

John Mann

Withdrawn  285

Clause  121,  page  63,  line  11,  at end insert—

‘(za)
investigate the handling of complaints by the Office for Legal

Complaints (complaints under this subsection include those handled on

behalf of the Office for Legal Complaints and those referred to Approved

Regulators by the Office for Legal Compliants).’.

John Mann

Not called  286

Clause  121,  page  63,  line  24,  at end add—

‘(6)
The Board may take any steps it considers reasonably necessary to ensure the

OLC’s compliance with any obligations set under section 118(2)(a), (b) and (c).’.

Clause Agreed to.

John Mann

Withdrawn  287

Clause  122,  page  63,  line  32,  at end insert—

‘(2A)
The majority of persons appointed under paragraph 1(b) must be lay persons.’.

Clause Agreed to.

Clauses 123 to 127 Agreed to.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not moved  303

Clause  128,  page  65,  line  28,  at end insert ‘, or was a person giving legal advice or

Public Bill Committee Proceedings: 21st June 2007
35

Legal Services Bill [Lords], continued

assistance in the course of business but who is not otherwise covered by the provisions of

this Act.’.

Clause Agreed to.

Clauses 129 to 132 Agreed to.

[Adjourned till Tuesday next at 10.30 a.m.