Legal Services Bill [HL]

House of Commons

Session 2006 - 07
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Legal Services Bill [HL]

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
306

(4)
The management and control condition is satisfied in the case of any
other body corporate if at least one director of the body is a licensed
conveyancer.
(5)
The services condition is satisfied in respect of a body if the body is
carrying on a business consisting of the provision of—
5
(a)
conveyancing services, or
(b)
conveyancing services and other relevant legal services.
(6)
For the purposes of this section—
“authorised person” means an authorised person in relation to
an activity which is a reserved legal activity (within the
10
meaning of the Legal Services Act 2007);
“relevant legal services”, in relation to a body, means—
(a)
conveyancing services, and
(b)
where authorised persons are managers or employees
of, or have an interest in, the body, services such as
15
are provided by individuals practising as such
authorised persons (whether or not those services
involve the carrying on of reserved legal activities
within the meaning of the Legal Services Act 2007);

and a person has an interest in a body if the person has an interest in
20
the body within the meaning of Part 5 of the Legal Services Act 2007
(see sections 72 and 109 of that Act).”
22
For section 33 (legal professional privilege), substitute—
“33
Legal professional privilege
(1)
Subsection (2) applies where a licensed conveyancer or recognised
25
body acts as such for a client.
(2)
Any communication, document, material or information is
privileged from disclosure in like manner as if the licensed
conveyancer or body had at all material times been acting as the
client’s solicitor.
30
(3)
This section does not apply to a recognised body which holds a
licence under Part 5 of the Legal Services Act 2007 (alternative
business structures).”
23
After that section insert—
“33A
Administration of oaths by licensed conveyancers
35
The Council may make rules prescribing its arrangements for
authorising licensed conveyancers, for the purposes of the Legal
Services Act 2007, to carry on activities which consist of the
administration of oaths.”
24
In section 34 (modification of existing enactments relating to conveyancing
40
etc), omit subsection (2)(c) to (e).
25
In section 35 (penalty for pretending to be a licensed conveyancer or
recognised body), in subsection (2) omit “corporate”.
26
In section 36 (offences by bodies corporate)—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
307

(a)
the existing section becomes subsection (1) of that section and in that
subsection for “director” to “capacity” substitute “officer of the body
corporate”, and
(b)
after that subsection insert—
“(2)
Where the affairs of a body corporate are managed by its
5
members, subsection (1) applies in relation to the acts and
defaults of a member in connection with the member’s
functions of management as it applies to an officer of the
body corporate.
(3)
Proceedings for an offence under this section alleged to have
10
been committed by an unincorporated body are to be
brought in the name of that body (and not in that of any of its
members) and, for the purposes of any such proceedings, any
rules of court relating to the service of documents have effect
as if that body were a corporation.
15
(4)
A fine imposed on an unincorporated body on its conviction
of an offence under this section is to be paid out of the funds
of that body.
(5)
If an unincorporated body is charged with an offence under
this section, section 33 of the Criminal Justice Act 1925 and
20
Schedule 3 to the Magistrates’ Courts Act 1980 (procedure on
charge of an offence against a corporation) have effect in like
manner as in the case of a corporation so charged.
(6)
Where an offence under this section committed by an
unincorporated body (other than a partnership) is proved to
25
have been committed with the consent or connivance of, or to
be attributable to any neglect on the part of, any officer of the
body or any member of its governing body, that officer or
member as well as the unincorporated body is guilty of the
offence and liable to be proceeded against and punished
30
accordingly.
(7)
Where an offence under this section committed by a
partnership is proved to have been committed with the
consent or connivance of, or to be attributable to any neglect
on the part of, a partner, that partner as well as the
35
partnership is guilty of the offence and liable to be proceeded
against and punished accordingly.
(8)
In this section “officer”, in relation to a body corporate,
means—
(a)
any director, secretary or other similar officer of the
40
body corporate, or
(b)
any person who was purporting to act in any such
capacity.”
27
In section 38 (rules)—
(a)
omit subsection (1), and
45
(b)
in subsection (2) for “such rules” substitute “rules made by the
Council under this Part”.
28
In section 39(1) (interpretation of Part 2)—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
308

(a)
in the definition of “client”, in paragraph (a) omit “or his firm”,
(b)
omit the definitions of “director” and “officer”,
(c)
at the appropriate place insert—
““manager”, in relation to a body, has the same meaning
as in the Legal Services Act 2007 (see section 207 of
5
that Act);”, and
(d)
in the definition of “recognised body” omit “corporate”.
29    (1)
Schedule 3 (Council for Licensed Conveyancers: supplementary provisions)
is amended as follows.
      (2)
In paragraph 2(1), for “elected or nominated” substitute “appointed”.
10
      (3)
In paragraph 2(2), for “elect” substitute “appoint”.
      (4)
Omit paragraph 2(3).
      (5)
Omit paragraph 3.
      (6)
In paragraph 4(1)—
(a)
for “election or nomination” (in both places) substitute
15
“appointment”,
(b)
for “election of” substitute “appointment of”, and
(c)
for “elected or nominated” substitute “appointed”.
      (7)
In paragraph 4(2), for “elected or nominated” (in each place) substitute
“appointed”.
20
      (8)
In paragraph 4(3), for the words from “Secretary of State” (in the first place)
to the end substitute “Legal Services Board.”
      (9)
In paragraph 4(4)—
(a)
for “Secretary of State” (in both places) substitute “Legal Services
Board”,
25
(b)
for “him” substitute “it”, and
(c)
for “he” (in both places) substitute “it”.
     (10)
In paragraph 9, for “election or nomination” substitute “appointment”.
     (11)
In paragraph 10 for “Secretary of State” (in both places) substitute “Lord
Chancellor”.
30
     (12)
In paragraph 11(3) for “Secretary of State” substitute “Lord Chancellor”.
30    (1)
Schedule 4 (the Discipline and Appeals Committee: supplementary
provisions) is amended as follows.
      (2)
In paragraph 1 (rules of procedure)—
(a)
omit sub-paragraphs (3) and (4), and
35
(b)
in sub-paragraph (5), for “paragraphs 2 and 3” substitute “paragraph
2”.
      (3)
Omit paragraph 3.
31    (1)
Schedule 5 (intervention in licensed conveyancer’s practice) is amended as
follows.
40
      (2)
In paragraph 1 (grounds for intervention)—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
309

(a)
in sub-paragraph (1)(a) after “practice” insert “or former practice or
in connection with any trust of which that licensed conveyancer is or
was a trustee”,
(b)
after that sub-paragraph insert—
“(aa)
the Council has reason to suspect dishonesty on the
5
part of a licensed conveyancer (“L”) in connection
with—
(i)
the business of any person of whom L is or
was an employee, or of any body of which
L is or was a manager, or
10
(ii)
any business which is or was carried on by
L as a sole trader;”,
(c)
in sub-paragraph (1)(b) after “practice” insert “or in connection with
any trust”,
(d)
in sub-paragraph (1)(c), after “section” insert “20, 21(3)(c),”,
15
(e)
after sub-paragraph (1)(e) insert—
“(ea)
the Council is satisfied that a licensed conveyancer
has abandoned his practice;
(eb)
the Council is satisfied that a licensed conveyancer
has been practising in breach of any conditions
20
subject to which his licence has effect;”,
(f)
in sub-paragraph (1)(f), after “illness” insert “, injury”,
(g)
for sub-paragraph (1)(g) substitute—
“(g)
a licensed conveyancer lacks capacity (within the
meaning of the Mental Capacity Act 2005) to act as
25
a licensed conveyancer and powers under section
15 to 20 or section 48 of that Act are exercisable in
relation to the licensed conveyancer;”,
(h)
after sub-paragraph (1)(h) insert—
“(i)
the Council is satisfied that it is necessary to
30
exercise the powers conferred by Part 2 of this
Schedule (or any of them) in relation to a licensed
conveyancer to protect—
(i)
the interests of clients (or former or
potential clients) of the licensed
35
conveyancer or his firm, or
(ii)
the interests of the beneficiaries of any trust
of which the licensed conveyancer is or was
a trustee.”, and
(i)
omit sub-paragraph (2).
40
      (3)
In paragraph 3 (intervention following an undue delay)—
(a)
for “10(3)” substitute “10(9)”,
(b)
in paragraph (a) for “a complaint is made to the Council” substitute
“the Council is satisfied”,
(c)
in that paragraph for “was instructed” substitute “is or was acting”,
45
and
(d)
in that paragraph after “client” insert “or in connection with any
trust”.
      (4)
In paragraph 4(2) (continuation of powers after death etc of licensed
conveyancer)—
50

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
310

(a)
after “and (3)” insert “, 6A”,
(b)
for “and (5)” substitute “, (5) and (6)”, and
(c)
for “10(1)” substitute “10(2) and (7)”.
      (5)
In paragraph 6 (vesting of sums in Council)—
(a)
in sub-paragraph (1) after “thereto” insert “and to rules under
5
paragraph 6B”, and
(b)
in sub-paragraph (2)(a) after “practice” insert “or former practice or
with any trust of which he is or was a trustee”.
      (6)
After paragraph 6 insert—
“6A   (1)
Without prejudice to paragraph 5, if the Council passes a
10
resolution to the effect that any rights to which this paragraph
applies shall vest in the Council, those rights shall vest
accordingly.
      (2)
This paragraph applies to any right to recover or receive debts due
to the licensed conveyancer or his firm in connection with his
15
practice or former practice.
      (3)
Any sums recovered by the Council by virtue of the exercise of
rights vested under sub-paragraph (1) shall vest in the Council
and shall be held by it on trust to exercise in relation to them the
powers conferred by this Part of this Schedule and, subject to those
20
powers and to rules under paragraph 6B, upon trust for the
persons beneficially entitled to them.
      (4)
The Council shall serve on the licensed conveyancer or his firm,
and any person who owes a debt to which the order applies a
certified copy of the Council’s resolution.
25
6B    (1)
The Council may make rules governing its treatment of sums
vested in it under paragraph 6 or 6A(3).
      (2)
The rules may, in particular, make provision in respect of cases
where the Council, having taken such steps to do so as are
reasonable in all the circumstances of the case, is unable to trace
30
the person or persons beneficially entitled to any sum vested in the
Council under paragraph 6 or 6A(3) (including provision which
requires amounts to be paid into or out of a fund maintained
under section 21).”
      (7)
In paragraph 7(1) (holding of sums vested in Council) after “thereto” insert
35
“and to rules under paragraph 6B”.
      (8)
In paragraph 8 for “holds money” to the end substitute—
“(a)
holds money on behalf of the licensed conveyancer or his
firm, or
(b)
has information which is relevant to identifying any
40
money held by or on behalf of the licensed conveyancer or
his firm,

the court may require that person to give the Council information
as to any such money and the accounts in which it is held.”
      (9)
In paragraph 9 (documents)—
45
(a)
in sub-paragraph (1)(a)—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
311

(i)
after “possession” insert “or under the control”, and
(ii)
after “practice” insert “or former practice or with any trust of
which the licensed conveyancer is or was a trustee”,
(b)
in sub-paragraph (1)(b)—
(i)
after “possession” insert “or under the control”, and
5
(ii)
for “to which the complaint relates” substitute “of which the
Council is satisfied”,
(c)
in sub-paragraph (3) after “possession” insert “or control”,
(d)
in sub-paragraph (5) after “possession” insert “or are under the
control”,
10
(e)
after that sub-paragraph insert—
   “(5A)
In the case of a document which consists of information
which is stored in electronic form, the requirement
imposed by a notice under sub-paragraph (1) or an order
under sub-paragraph (4) or (5), is a requirement to produce
15
or deliver the information in a form in which it is legible or
from which it can readily be produced in a legible form.”,
(f)
in sub-paragraph (6) after “possession of” insert “(a)”,
(g)
at the end of that sub-paragraph insert—
“(b)
any property—
20
(i)
in the possession or under the control of the
licensed conveyancer or his firm, or
(ii)
in the case of an order under sub-paragraph
(5), which was in the possession or under
the control of such a person and has come
25
into the possession or under the control of
the person in respect of whom the order is
made,

which the Council reasonably requires for the
purpose of accessing information contained in such
30
documents,

and to use property obtained under paragraph (b) for that
purpose.”,
(h)
in sub-paragraph (7) after “documents” insert “or other property”,
(i)
in sub-paragraph (8) after “documents” insert “or other property”,
35
and
(j)
in sub-paragraph (10) after “documents” insert “or other property”.
     (10)
For paragraph 10 (mail) substitute—
“Redirection of communications
10    (1)
The High Court, on the application of the Council, may from time
40
to time make a communications redirection order.
      (2)
A communications redirection order is an order that specified
communications to the licensed conveyancer or his firm are to be
directed, in accordance with the order, to the Council, or any
person appointed by the Council.
45
      (3)
For the purposes of this paragraph—

Legal Services Bill [HL]
Schedule 17 — Licensed conveyancing
Part 1 — Administration of Justice Act 1985 (c. 61)
312

(a)
“specified communications” means communications of
such description as are specified in the order;
(b)
the descriptions of communications which may be so
specified include—
(i)
communications in the form of a postal packet;
5
(ii)
electronic communications;
(iii)
communications by telephone.
      (4)
A communications redirection order has effect for such time not
exceeding 18 months as is specified in the order.
      (5)
Where a communications redirection order has effect, the Council
10
or the person appointed by the Council may take possession or
receipt of the communications redirected in accordance with the
order.
      (6)
Where a communications redirection order is made the Council
must pay to—
15
(a)
in the case of an order relating to postal packets, the postal
operator concerned, and
(b)
in any other case, the person specified in the order,

the like charges (if any) as would have been payable for the
redirection of the communications to which the order relates if the
20
addressee had permanently ceased to occupy or use the premises
or other destination of the communications and had applied to the
postal operator or the specified person (as the case may be) to
redirect the communications to him as mentioned in the order.
      (7)
The High Court may, on the application of the Council, authorise
25
the Council, or a person appointed by it, to take such steps as may
be specified in the order in relation to any website purporting to
be or have been maintained by or on behalf of the licensed
conveyancer or his firm if the High Court is satisfied that the
taking of those steps is necessary to protect the public interest or
30
the interests of clients (or potential or former clients) of the
licensed conveyancer or his firm.
      (8)
In this paragraph—
“postal operator” has the meaning given by section 125(1) of
the Postal Services Act 2000;
35
“postal packet” has the meaning given by section 125(1) of the
Postal Services Act 2000.
      (9)
This paragraph does not apply where the powers conferred by this
Part of this Schedule are exercisable by virtue of paragraph 3.”
     (11)
After paragraph 10 insert—
40
“Trusts
10A   (1)
If the licensed conveyancer or his personal representative is a
trustee of a trust, the Council may apply to the High Court for an
order for the appointment of a new trustee in substitution for him.