The following information and linked pages is for the information of solicitor directors of incorporated legal practices but may also be of interest to other readers.

Since 1 July 2001, NSW legal service providers have been permitted to incorporate and provide legal services to clients either alone, or alongside other service providers who may, or may not be, “legal practitioners”. Such “Incorporated Legal Practices” (“ILPs”) can operate provided the ILP has at least one “legal practitioner director” and complies with the requirements of the Legal Profession Amendment (Incorporated Legal Practices) Act 2000 and the Legal Profession Regulation 2005. Such provisions have been incorporated into the Legal Profession Act 2004 (“the LPA”) and Regulations. Legal practitioner directors must also comply with their obligations as a company director under the Corporations Act 2001.

Legal practitioners who practice as “legal practitioner directors” or employee solicitors of ILPs continue to be subject to their professional obligations under the LPA, the Regulations, the Rules and the general law. However, to the extent that the provisions of the LPA or Regulations conflict with the Corporations Act, the provisions of the LPA will prevail.

By virtue of Sections 140(3) and 670 of the Legal Profession Act 2004, the OLSC has the role of auditing ILPs to ensure compliance with the LPA, the Regulations and the legal profession Rules. The test for compliance is found in part in s140(5) of the Legal Profession Act 2004 which stipulates that it is capable of being professional misconduct if a legal practitioner director does not ensure that “appropriate management systems” are implemented and maintained by the ILP to ensure that legal services are provided in accordance with the LPA, the Regulations and the legal profession Rules.

Set out below is information in relation to: