Lawyers and Conveyancers Act 2006

If you need more information about this Act, please contact the administering agency: Ministry of Justice
19 Liability of conveyancing practitioner principals in respect of pecuniary loss by reason of theft

(1)

If a person suffers pecuniary loss by reason of the theft of any money or valuable property that has been entrusted to a conveyancing practitioner or an incorporated conveyancing firm in the course of the conveyancing practitioner’s or incorporated conveyancing firm’s practice, the persons specified in subsection (2) are, in addition to the person who committed the theft, personally liable for that pecuniary loss if the theft was committed—

(a)

by any person who is, in relation to the conveyancing practitioner, a related person or entity; or

(b)

by any agent, employer, or employee of the conveyancing practitioner or incorporated conveyancing firm (whether or not that agent, employer, or employee is also a conveyancing practitioner); or

(c)

by any agent or employee of a person who is, in relation to the conveyancing practitioner, a related person or entity (whether or not that agent or employee is also a conveyancing practitioner); or

(d)

by any partner or director or other person who controls or manages the incorporated conveyancing firm or any body that is, in relation to the conveyancing practitioner, a related entity.

(2)

The persons who are personally liable under subsection (1) are as follows:

(a)

the conveyancing practitioner to whom, or the incorporated conveyancing firm to which, the money or other valuable property was entrusted:

(b)

any person who is, in relation to the conveyancing practitioner referred to in paragraph (a), a related person or entity:

(c)

any person who is a director or shareholder of the incorporated conveyancing firm referred to in paragraph (a).

(3)

Despite subsection (2), a person who is a shareholder of the incorporated conveyancing firm referred to in subsection (2)(a) is not personally liable under subsection (1) if—

(a)

that shareholder does not hold any shares in the incorporated conveyancing firm that confer voting rights; and

(b)

that shareholder is not a person who is actively involved in the provision by the incorporated conveyancing firm of regulated services; and

(c)

that shareholder is not a person who is an administrator of the estate of a person who, at the time of his or her death, was—

(i)

a director of the incorporated conveyancing firm; or

(ii)

a conveyancing practitioner who was actively involved in the provision by the incorporated conveyancing firm of regulated services.