5—Amendment of section 7—Entitlement to be registered
(1)
Section 7(2)—after paragraph (a) insert:
(ab) no
director of the company is a prescribed person; and
(2)
Section 7(3)—delete subsection (3) and substitute:
(3) A company is not
entitled to be registered as a conveyancer unless the constitution of the
company contains stipulations so that—
(a) the
sole object of the company must be to carry on business as a conveyancer; and
(b) the
majority of the directors of the company must be natural persons who are
registered conveyancers (but where there are only 2 directors 1 may be a
registered conveyancer and the other may be a person who is not a registered
conveyancer and nothing in this paragraph prevents a constitution providing
that all directors of a company must be registered conveyancers); and
(c) no
director of the company may be a prescribed person; and
(d) the
majority of voting rights exercisable at a meeting of the members of the
company must be held by registered conveyancers who are directors or employees
of the company (but nothing in this paragraph prevents a constitution
providing that all such rights must be held by registered conveyancers); and
(e) no
share in the capital of the company, and no rights to participate in
distribution of profits of the company, may be owned beneficially by a
prescribed person.
(4) For the purposes
of this section, a person is a "prescribed person if the person is—
(a) a
land agent; or
(b) a
financier; or
(c) a
close associate of a land agent or financier,
other than where the land agent, financier or close associate is also—
(d) a
registered conveyancer; or
(e) a
prescribed relative of a registered conveyancer who is a director of the
particular company seeking registration under this section.
(5) In this
section—
"financier" means a person who carries on a business that consists of or
involves—
(a)
mortgage financing; or
(b)
lending money for the purchase of land;
"land agent" means an agent or a sales representative within the meaning of
the Land Agents Act 1994.