South Australian Current Acts South Australian Current Acts44—Control over trust accounts of legal practitioners
(1) If the Society
knows, or suspects on reasonable grounds, that—
(a) a
legal practitioner has died (or in the case of a company, has been dissolved
or is being wound up); or
(b) a
legal practitioner is for any reason not attending properly, or unable to
attend properly, to the affairs of his or her practice; or
(c) a
legal practitioner has committed a serious irregularity in the course of
practice, or a serious irregularity has occurred in the course of practice; or
(d) a
person has ceased to be a legal practitioner without making proper provision
for winding up the affairs of his or her practice; or
(e) any
other proper cause exists for the appointment of a supervisor under this
section,
the Society may, by resolution of the Council, appoint a supervisor to
exercise the powers conferred by this section.
(2) A person appointed
under subsection (1) has power to—
(a)
ascertain and verify entitlements to trust money; and
(b)
dispose of trust money to persons entitled to the money or in accordance with
the Unclaimed Moneys Act 1891 ; and
(c)
execute cheques or other instruments for the purpose.
(3) As soon as
practicable after any such resolution has been passed, the Society must cause
a written copy of the resolution to be served on—
(a) the
legal practitioner or former legal practitioner or his or her personal
representative; and
(b) any
other person authorised to operate the trust account of the legal
practitioner; and
(c) the
auditor (if any) of the trust account maintained by the legal practitioner or
former legal practitioner; and
(d) the
manager or other principal officer of the office or branch of the ADI at which
the legal practitioner or former legal practitioner maintained the
trust account.
(4) After service of
the notice on the ADI, and until the resolution ceases to be effective—
(a) no
payment may be made by the ADI of any cheque or other instrument drawn on the
trust account to which the resolution relates unless it bears the signature of
the person appointed pursuant to this section; and
(b) if
it bears the signature of the person so appointed (whether or not it bears the
signature of any other person) it is lawful for the ADI to make a payment in
accordance with the cheque or other instrument.
(5) A person on whom a
copy of the resolution has been served must not sign any cheque or other
instrument drawn on the trust account to which the resolution relates unless
that cheque or instrument is signed by the person appointed pursuant to this
section.
(6) A person who
contravenes this section is guilty of an offence.
Maximum penalty: $1 250.
(7) A resolution under
this section is effective for a term of 12 months or such lesser term as may
be fixed by the Society but the Society may, from time to time, renew the
resolution for a term not exceeding 12 months.
(8) The Society may,
at any time, revoke an appointment under this section.