40—Authority of legal practitioner or foreign lawyer to act on behalf of
person of unsound mind
(1) The authority of a
legal practitioner or Australian-registered foreign lawyer to act on behalf of
a person is not abrogated by reason only of the fact that that person becomes
of unsound mind.
(2) When the mental
unsoundness of a person on behalf of whom a legal practitioner or
Australian-registered foreign lawyer is acting comes to the knowledge of the
practitioner or lawyer, the authority of the practitioner or lawyer to act on
behalf of that person ceases, subject to subsection (3), and determines.
(3) Where it is
necessary for the purpose of protecting the interests of a person of unsound
mind in any legal proceedings or other business, the authority of a legal
practitioner or Australian-registered foreign lawyer, notwithstanding that the
practitioner or lawyer knows of the mental unsoundness of the person on behalf
of whom the practitioner or lawyer is acting, continues for the purpose of
completing those proceedings or that business.