New Zealand Legislation: Acts

85 Investigation of solicitor's affairs

• (1) The Council of the New Zealand Law Society or of any District Law Society may at any time appoint any officer or member of any such society, or a chartered accountant for the time being qualified to conduct the audit of solicitors' trust accounts, to examine from time to time the accounts of solicitors or firms of solicitors, and to furnish to it confidential reports as to any irregularity in the accounts of any solicitor or firm of solicitors that may be disclosed by any such examination, or as to any other matter that in the opinion of the person so appointed should be reported upon or further investigated.

  (2) Every appointment made under this section shall be in writing and shall be signed on behalf of the Council of any such Law Society by the President or any 2 members of the Council.

  (3) Any person for the time being holding an appointment under this section may at any time, without further authority than this section, examine the accounts of any solicitor or firm of solicitors.

  (4) Without limiting the generality of the foregoing provisions of this section, if the Council or District Council has reasonable cause to believe—

  • (a) That any money entrusted to a solicitor has been stolen by him or by his employee or agent; or

  • (b) That any trust account of a solicitor or firm of solicitors is not being kept or operated in accordance with any rules or regulations made under this Act and for the time being in force relating to trust accounts and the audit of such accounts; or

  • (c) That any solicitor is, owing to physical or mental disability, unable to properly administer his trust account,—

  any person for the time being holding an appointment under this section may at any time, acting under the general or special directions of the Council or District Council, examine the accounts of that solicitor or firm.

  (5) On production by any person so appointed of the instrument of his appointment, he may at any time—

  • (a) Require any solicitor or firm of solicitors, or any employee, agent, or banker of any solicitor or firm of solicitors, to produce to him all records or documents relating to the business or accounts of any solicitor or firm of solicitors, and to give all information in relation thereto that may be reasonably required by him; and

  • (b) Inspect all records and documents relating to any money received by any solicitor or firm of solicitors, or any employee, agent, or banker of any solicitor or firm of solicitors, whether the money has been paid into a private account or a trust account at a bank or has not been paid to any such account, and make copies of them or of any entries in them.

  (6) A person so appointed shall not communicate any matter that may come to his knowledge in the exercise of any of his powers under this section, except—

  • (a) For the purposes of his investigation; or

  • (b) In the course of any report to the Council that appointed him; or

  • (c) In evidence in proceedings before a District Council or committee or a Tribunal under Part 7 of this Act, or before the Disciplinary Tribunal of the Institute of Chartered Accountants of New Zealand; or

  • (d) To a member of the Police acting in the performance of his duty; or

  • (e) In evidence in any court.

  (7) The Council receiving any such report shall consider it in committee and not otherwise; and it shall not be lawful for any member of that Council or any of its officers to publish to any person any information disclosed in the report except pursuant to subsection (6) or subsection (8) of this section or in the performance of his duty.

  (8) The Council receiving any such report may in its discretion communicate the contents of it, or any part of the contents, to—

  • (a) Any solicitor to whom the report relates, or any practitioner representing that solicitor, or, if that solicitor is a partner in a firm of solicitors, to any partner in the firm:

  • (b) The auditor of the solicitor's trust account:

  • (c) The President of the New Zealand Law Society:

  • (d) A chartered accountant (within the meaning of section 19 of the Institute of Chartered Accountants of New Zealand Act 1996:

  • (e) Any member of the Police.

  (9) Nothing in this section shall prevent the Council or District Council, in its discretion, from giving to any client of a solicitor or firm of solicitors any information disclosed in any such report so far as it relates to the client's affairs and is required by the client.

  (10) Where the contents, or any part of the contents, of any report are disclosed to the Council of the Institute of Chartered Accountants of New Zealand under subsection (8) of this section, that Council shall consider the information given in committee and not otherwise; and it shall not be lawful for any member of that Council or any of its officers to publish to any person any information so disclosed except in evidence in disciplinary proceedings under the Institute of Chartered Accountants of New Zealand Act 1996.

  Compare: 1955 No 101 ss 98(1), 99(1)-(3), (4), (5); 1957 No 58 s 2

  Subsection (6)(c) was substituted, as from 1 October 1996, by section 23 Institute of Chartered Accountants of New Zealand Act 1996 (1996 No 39).

  Subsection (8)(d) was substituted, as from 1 October 1996, by section 23 Institute of Chartered Accountants of New Zealand Act 1996 (1996 No 39).

  Subsection (10) was substituted, as from 1 October 1996, by section 23 Institute of Chartered Accountants of New Zealand Act 1996 (1996 No 39).