Legal Practitioners Act 1981

If the Society knows, or suspects on reasonable grounds, that—

a legal practitioner has died (or in the case of a company, has been dissolved or is being wound up); or

a legal practitioner is for any reason not attending properly, or unable to attend properly, to the affairs of his or her practice;

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

a person has ceased to be a legal practitioner without making proper provision for winding up the affairs of his or her practice;

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.

A person appointed under subsection (1) has power to—

ascertain and verify entitlements to trust money; and

dispose of trust money to persons entitled to the money or in accordance with the Unclaimed Moneys

execute cheques or other instruments for the purpose.

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—

the legal practitioner or former legal practitioner or his or her personal representative; and

any other person authorised to operate the trust account of the legal practitioner; and

the auditor (if any) of the trust account maintained by the legal practitioner or former legal practitioner; and

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.

After service of the notice on the ADI, and until the resolution ceases to be effective—

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

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.

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.

A person who contravenes this section is guilty of an offence. Maximum penalty: $1 250.

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.

The Society may, at any time, revoke an appointment under this section.