1989 Ed.]
Solicitors (Professional Indemnity) Rules
[CAP. 159
M11
[Subsidiary]
(b)
and the gross fee income of the firm shall be determined by the particulars contained in the gross fee income certificate produced under rule 8(1)(a) plus a factor to be applied by the Company to this figure to compensate for the historical basis of the gross fee income calculation (such factor not to exceed 10%) and shall be subject to adjustment as provided in sub-subparagraph (b)(iv); or
(ii) in the circumstances set out in subparagraph (6), according to the formula-
Where--
Fx C
C = the amount (subject to any appropriate adjustment made under subparagraph (3)) of the basic contribution which may also be the contribution; and
F = the appropriate factor referred to in subparagraph (6)(d).
(1) The contribution for the first indemnity period and for all subsequent indemnity periods shall be regulated by the number of principals, assistant solicitors and consultants engaged or employed in the Practice from time to time and the gross fee income of the firm.
(ii) Information regarding gross fee income of the firm and unqualified staff and the information described as N and M in sub-subparagraph (a) shall be properly recorded and the indemnified shall at all times allow the Company to inspect such records.
(iii) Particulars of the names and the position held in the Practice of every principal, assistant solicitor and consultant and the numbers of and positions held by unqualified staff at 1 October 1989 shall be submitted by the firm to the Company on or before 8 October 1989. Thereafter a return shall be sent to the Company on or before the last day of December, March, June and September in each year commencing on 31 December 1989 showing every subsequent change in such particulars (and the date of such change) occurring since the date of the previous return.
(iv) Upon receipt by the Company of the certificate of gross fee income and information pursuant to rule 8(1) to enable the Company to assess the contribution for the next period of indemnity, the Company will also, based on such information and the other information referred to in sub-subparagraph (b)(iii), calculate and adjust the contribution for the preceding indemnity period in accordance with the formula for calculating the contribution for such preceding indemnity period. Any difference in the amount of the assessed contribution paid for the preceding indemnity period and the contribution established by such calculation shall be met by a further payment by the firm, or in the event of the firm being dissolved prior to payment, by the principals of the firm immediately prior to such dissolution to the Company, or, notwithstanding paragraph 4, by a refund to the firm or such principals by the Company, as the case may be.
(c) If any principal who is required to make contributions in accordance with paragraph 1 fails to provide the Company with a certified public accountant's certificate of the gross fee income or other information referred to in sub-subparagraph (b)(iii) pursuant to rule 8(1), then such principal and the other principal or principals, if any, in the Practice shall be jointly and severally liable to pay-
(i) for the first indemnity period, an amount equal to 400% of the total amount payable by the firm as premium under and in respect of the second Master Policies for the period from 1 October 1987 to 30 September 1988; and
(ii) thereafter, for each subsequent indemnity period an amount equal to 200% of the rate of contribution for the preceding indemnity period until such principal or principals have made disclosure of such particulars of the gross fee income or other information as was required.
(d) Upon a principal making good all failures under sub-subparagraph (c), the Company shall assess the contribution payable in respect of the Practice. If the amount of the contribution as assessed-
(i) is less than the amount of the contribution paid, the difference shall be repaid to his firm without interest; or
(ii) exceeds the amount of the contribution paid, his firm shall upon demand pay to the Company the balance of the amount of the contribution together with interest on the amount of such balance at the rate of 4% per annum above the
1989 Ed.]
Solicitors (Professional Indemnity) Rules
[CAP. 159
M11
[Subsidiary]
(b)
and the gross fee income of the firm shall be determined by the particulars contained in the gross fee income certificate produced under rule 8(1)(a) plus a factor to be applied by the Company to this figure to compensate for the historical basis of the gross fee income calculation (such factor not to exceed 10%) and shall be subject to adjustment as provided in sub-subparagraph (b)(iv); or
(ii) in the circumstances set out in subparagraph (6), according to the formula-
Where--
Fx C
C = the amount (subject to any appropriate adjustment made under subparagraph
(3)) of the basic contribution which may also be the contribution; and
F the appropriate factor referred to in subparagraph (6)(d).
(1) The contribution for the first indemnity period and for all subsequent indemnity periods shall be regulated by the number of principals, assistant solicitors and consultants engaged or employed in the Practice from time to time and the gross fee income of the firm.
(ii) Information regarding gross fee income of the firm and unqualified staff and the information described as N and M in sub-subparagraph (a) shall be properly recorded and the indemnified shall at all times allow the Company to inspect such records.
(iii) Particulars of the names and the position held in the Practice of every principal, assistant solicitor and consultant and the numbers of and positions held by unqualified staff at 1 October 1989 shall be submitted by the firm to the Company on or before 8 October 1989. Thereafter a return shall be sent to the Company on or before the last day of December, March, June and September in each year commencing on 31 December 1989 showing every subsequent change in such particulars (and the date of such change) occurring since the date of the previous return.
(iv) Upon receipt by the Company of the certificate of gross fee income and in- formation pursuant to rule 8(1) to enable the Company to assess the con- ribution for the next period of indemnity, the Company will also, based on such information and the other information referred to in sub-subparagraph (b)(iii), calculate and adjust the contribution for the preceding indemnity period in ac- cordance with the formula for calculating the contribution for such preceding indemnity period. Any difference in the amount of the assessed contribution paid for the preceding indemnity period and the contribution established by such calculation shall be met by a further payment by the firm, or in the event of the firm being dissolved prior to payment, by the principals of the firm immediately prior to such dissolution to the Company, or, notwithstanding paragraph 4, by a refund to the firm or such principals by the Company, as the case may be. (c) If any principal who is required to make contributions in accordance with paragraph 1 fails to provide the Company with a certified public accountant's certificate of the gross fee income or other information referred to in sub-subparagraph (b)(iii) pursuant to rule 8(1), then such principal and the other principal or principals, if any, in the Practice shall be jointly and severally liable to pay-
(i) for the first indemnity period, an amount equal to 400% of the total amount payable by the firm as premium under and in respect of the second Master Policies for the period from 1 October 1987 to 30 September 1988; and
(ii) thereafter, for each subsequent indemnity period an amount equal to 200% of the rate of contribution for the preceding indemnity period until such principal or principals have made disclosure of such particulars of the gross fee income or other information as was required.
(d) Upon a principal making good all failures under sub-subparagraph (c), the Company shall assess the contribution payable in respect of the Practice. If the amount of the contribution as assessed-
(i) is less than the amount of the contribution paid, the difference shall be repaid to
his firm without interest; or
(ii) exceeds the amount of the contribution paid, his firm shall upon demand pay to the Company the balance of the amount of the contribution together with interest on the amount of such balance at the rate of 4% per annum above the
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