Northern Territory Consolidated Acts

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LEGAL PROFESSION ACT 2006 - SECT 571

Circumstances warranting external intervention

External intervention may take place in relation to a law practice in any of the following circumstances:

        (a)     where a legal practitioner associate involved in the practice:

            (i)     has died; or

            (ii)     ceases to be an Australian legal practitioner; or

            (iii)     has become an insolvent under administration; or

            (iv)     is in the custody of the Commissioner of Correctional Services;

        (b)     in the case of a firm – where the partnership has been wound up or dissolved;

        (c)     in the case of an incorporated legal practice – where the corporation concerned:

            (i)     ceases to be an incorporated legal practice; or

            (ii)     is being or has been wound up; or

            (iii)     has been deregistered or dissolved;

        (d)     in any case – where the Law Society forms a belief on reasonable grounds that the practice or an associate of the practice:

            (i)     is not dealing adequately with trust money or trust property or is not properly attending to the affairs of the practice; or

            (ii)     has committed a serious irregularity, or a serious irregularity has occurred, in relation to trust money or trust property or the affairs of the practice; or

            (iii)     has failed properly to account in a timely manner to any person for trust money or trust property received by the practice for or on behalf of that person; or

            (iv)     has failed properly to make a payment of trust money or a transfer of trust property when required to do so by a person entitled to that money or property or entitled to give a direction for payment or transfer; or

            (v)     is in breach of the regulations or legal profession rules with the result that the record-keeping for the practice's trust account is inadequate; or

            (vi)     has been or is likely to be convicted of an offence relating to trust money or trust property; or

            (vii)     is the subject of a complaint relating to trust money or trust property received by the practice; or

            (viii)     has failed to comply with any requirement of an investigator or external examiner appointed under this Act; or

            (ix)     has ceased to be engaged in legal practice without making provision for properly dealing with trust money or trust property received by the practice or for properly winding-up the affairs of the practice;

        (e)     where any other proper cause exists in relation to the practice.



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