The Gazette 1995

GAZETTE

AUGUST/SEPTEMBER 1995

P R A

I C

N O T E S

favour of the solicitor or his firm (even if there is an authorisation in place unless it would unreasonably delay compliance with the undertaking or the implementation of the relevant business); or (ii) with the prior authorisation of the client (or other person), endorse the cheque in favour of himself or his firm per pro (i.e. on behalf of and with the authority of) the client (or other person) pursuant to section 91 (1) of the Bills of Exchange Act, 1882 (which provides that - "Where, by this Act, any instrument or writing is required to be signed by any ! person, it is not necessary that he should sign it with his own hand, j but it is sufficient if his signature ! is written thereon by some other person by or under his j authority.") e.g. an endorsement as follows: "[Solicitor's signature] per pro [Payee's name as on cheque]. Pay [Solicitor's ! The Society strongly recommends that ! all solicitors should observe the spirit ! as well as the letter of section 7 6 ( 1 7) ; of the Solicitors (Amendment) Act, I 1994, and that authorisations from ! clients to endorse cheques or negotiable or non-negotiable instruments should not be obtained as j a matter of course but should only be j obtained in circumstances where the prompt conduct of the client's j business makes it necessary for the j solicitor to endorse cheques or other j negotiable instruments instead of having this done by the client. I i | Practice Name ] ." j

your firm per pro myself, that is to say, on my behalf and with my authority, any unendorsed cheque or other negotiable or non-negotiable instrument drawn in my favour or belonging to me which you receive in your capacity as my solicitor, to enable you to collect same to any designated client bank account kept by you or otherwise negotiate same.

Prohibition on lodging for collection of unendorsed third-party cheques - Section 76(17), Solicitors (Amendment) Act, 1994 Undertakings A solicitor should not give any undertaking in respect of clients' monies whether in contentious business or otherwise unless either - (i) he makes it clear to the recipient of the undertaking that his undertaking could be frustrated by the client refusing to endorse the relevant cheque or negotiable instrument pursuant to section 7 6 ( 1 7) of the Solicitors (Amendment) Act, 1994; or endorse the relevant cheque or negotiable or non-negotiable instrument on behalf of the client to enable the solicitor to collect the proceeds of the relevant instrument or lodge to his client account as the case may be. Even if there is no undertaking involved relative to a client's business a solicitor might deem it prudent to be able to collect or negotiate a cheque or other negotiable or non-negotiable instrument in the course of acting for a particular client. In order to comply with section 7 6 ( 1 7) in the above circumstances a solicitor receiving a cheque drawn in favour of a client or in favour of another person (other than the solicitor himself, his firm or a partner) should do one or other of the following:- Proper Procedure (ii) he obtains an irrevocable authority from the client to

j

Dated this

day of

1995.

Signed

Witness

i

Adequate Supervision of Apprentices

For the Attention of all Master Solicitors and their Apprentices

The Law Society has received a number of complaints regarding the excessive responsibility which is being delegated to apprentices at the early stages of their training, and in particular prior to attending their initial training course in the Law School. Masters are reminded that apprentices must receive an adequate level of supervision at all times in the course of the apprenticeship. If the master is unable himself/herself to give such supervision, appropriate alternative supervision should be arranged. This, in the first instance is the responsibility of the master. In the initial stages of training the Society strongly recommends that the master should accompany the apprentice to the closing of at least a few sales before such apprentice can attend a closing alone. It is not the duty of the solicitor acting on the opposite side of the transaction to train the apprentice of a colleague.

Authorisation

I, [Name and address of client or other j I person in whose favour cheque is drawn] hereby irrevocably authorise j you [Name and address of solicitor or solicitor's firm] as my agent/agents to endorse in your favour or in favour of

(i) have the client or other person personally endorse the cheque in