Practice rules consultation paper

The Law Society's regulation review working party has issued a consultation paper about draft rules intended to replace the Solicitors' Incorporated Practice Rules 2001.

The draft rules are shorter and, it is anticipated, more readily understandable.

Most of the requirements in the existing rules are carried over, but the paper discusses the following proposed changes:

- Removing the requirement that company shareowners and members, and members of limited liability partnerships, submit compensation fund covenants;

- Replacing the obligation to get the Law Society's written consent before re-registering an unlimited company as limited, and automatic loss of recognition if the change is made without that permission, with a requirement to notify the Law Society of the change;

- Introducing a new requirement for companies (and an equivalent requirement for LLPs) that if the only, or last remaining, solicitor or Registered European Lawyer director dies or abandons the practice, or would have a professional problem in continuing as director, an additional or replacement director be appointed within 14 days;

- Removing the absolute prohibitions upon the exercise of voting rights on the share of a patient as defined by section 94 of the Mental Health Act 1983, or a person who is the subject of emergency powers under section 98 of that Act; and the prohibition on such a person being a company director; and

- Continuing the requirement for a recognised body with limited liability to have top-up insurance, but taking it into the Solicitors' Incorporated Practice Rules.

The working party welcomes responses to the consultation, which is on the Law Society's Web site.

Visit: www.rulesreview.lawsociety.org.uk.

Alternatively, solicitors can telephone 020 7242 1222 (extensions 3343 or 3613) for a copy of the consultation.

The deadline for responses is 31 August 2003.