1980-HKRS28-16-28_Part05 — Page 44

Addidon of section TGAL

The principal Ordinance is amended by adding, after section 79. the following

**Indemnity

rulea.

734. (1) The Council may make rules (ĩn this Ordin- ance referred to as "Indemnity rules") concerning indemnity against loss arising from claims in respect of any description of civil liability incurred-

(a) by a solicitor or former solicitor in connexion with bis practice or with any trust or of which be is or formerly was a trustee;

(b) by an employes of a solicitor or former solicitor in connexion with that solicitor's practice or with any trust of which that solicitor or the employer is or formerly was a trustee.

(2) For the purpoan of providing such indemaily, indemnity rules-

(a) may authorize or require the Society to enablish

and maintain a fund or funds;

(6) may authorize or require the Society to take out and maintain insurance with authorized inmurers,

(c) may require solicitors or any specified class of solicitors to take out and maintain insurance with authorized insurers.

(3) Without prejudice to the generality of subsections (1) and (2), indecicity rules-

(2) may specify the terms and conditions on which indemnity is to be available, and any circumstances in which the right to it is to be excluded or modified;

(b) may provide for the management, administration and protection of any fund maintained by virtue of subsection (2)o) and require solicitors of any clas of solicitors to make payments to any such fund; (e) may require solicitors or any class of solicitors to make payments by way of premium on any in- surance policy maintained by the Society by virtue of subsection (2)(b)

(d) may prescribe the conditions which an insurance policy must satisfy for the purposes of subsection (2x)

(e) may authorize the Society to determine the amount of any payments required by the rules, subject to such limits, or in accordance with such provisions, as may be prescribed by the rules:

() may specify circumstances in which, where a solici- tor (not being a solicitor who is exempt from complying with the rules) for whom indemnity is provided has failed to comply with the rules," the Society or insurers may take proceedings against him in respect of sums paid by way of indemnity in connexion with a matter in relation to which he has failed to comply;

(e) may specify circumstances in which solicitors are

cxcmpt from the rules;

(k) may empower the Council to take such steps as they consider necessary or expedient to ascertaia whether or not the rules are being complied with; and

(0) may contain incidental, procedural or supplementary

provisions.

(4) If any solicitor (not being a solicitor who is exempt from complying with indemnity rules) fails to comply with the rules any person may make a complaint in respect of that failure to the Disciplinary Committée.

(5) The Society shall have power, without prejudice to any of its other powers, to carry into effect any arrange ments which it considers necessary or expedient for the purpose of indemnity under this section.

(6) Every rule made by the Council under this section shall be subject to the prior approval of the Chief Justice. (7) No rale made under this section shall apply to R solicitor to whom section 75 applies in so far as such solicitor is acting in the course of the employment which gives rise to the application of that secljan.”.

Passed by the Hong Kong Legislative Coung this December 1980.

day of

ftë the Legillative Cophet.

Clark fid

This printed impression has been carefully/compare

/compared by

TITLE

with the Bill, and is found by me to be a true and correctly printed copy of the said bat.

Clerk to the Legislative Cyürdü.