Main Category

• Library > Legal Subjects > Legal Professionals > Rulings

Related Category

• Laws of Malaysia > Case and Codes

Related Topics

• Bar Council
• Practice and Etiquette Rules
• The Pupil Master

PART VI : SOLICITORS' REMUNERATION ORDER 1991

19. Solicitor to act for one party only

A Solicitor shall act for one party only in any transaction under the First, Second and Fourth Schedules of the Solicitors' Remuneration Order, 1991 but may witness or attest the signature of the other party without charge.

20. Enforcement of Solicitors' Remuneration Order

In order to ascertain whether the Solicitors' Remuneration Order 1991 has been complied with the Bar Council either on its own motion or upon receipt of information or complaint may require any solicitor to produce to the Bar Council certified copies of documents relating to any transaction within fourteen (14) days or such time as may be extended by the Bar Council. 

21. Enforcement of Solicitors' Remuneration Order

In order to ascertain whether the Solicitors' Remuneration Order 1991 (as amended), any rules or rulings of the Bar Council have been complied with or whether the Solicitor's duties as Stakeholders have been performed, the Bar Council acting either on its own motion or upon receipt of information or complaint may require any Solicitor or firm of Solicitors to produce at a time and place to be fixed by the Bar Council, the Solicitor's or Solicitors' books and/or records of account, files, vouchers, bills, receipts and any other necessary documents for inspection and the making of copies thereof by any accountant or firm of accountants or such other person appointed by the Bar Council. The report on the results of such inspection may be used as a basis for proceedings under section 94 of the Legal Profession Act, 1976.

PART VII : UNDERTAKINGS

22. Solicitors to return documents if unable to give the undertaking required

Failure to honor an undertaking is a breach of professional conduct. This could result in the undertaking being enforced in Court and could also result in disciplinary proceedings being taken for the breach. 

Where payments or documents are sent to a Solicitor subject to undertaking or conditions, the Solicitor should return such payments or documents to the sender if he is unable to give or perform the undertaking or conditions required.

23. Solicitor not to impose or request unreasonable undertakings

No Solicitor shall impose or request in any manner whatsoever any undertaking on or from another Solicitor which, in the circumstances, is unreasonable and/or beyond the control of the other Solicitor.

PART VIII : STAKEHOLDERS

24. Solicitor not liable to pay interest on monies held as Stakeholder

A Solicitor who acts as a stakeholder is not liable to pay interest on any sum held in his capacity as a stakeholder. A Solicitor, as stakeholder, is not obliged to place the balance of the purchase price in an interest-bearing account unless provided for in the Agreement or specifically instructed by the parties to do so. 

25. Fee for acting as Stakeholder

A Solicitor is entitled to charge for acting as stakeholder and for producing a final account relating to its stakeholding.

26. Terms of Stakeholding to be strictly adhered to

A Solicitor acting as stakeholder for two or more parties must strictly adhere to the terms of stakeholding at all times. No money or document held by a solicitor as stakeholder shall be released, utilized, applied or otherwise dealt with by such solicitor except in accordance with the terms of stakeholding or with the express consent of all relevant parties. For example, a solicitor holding the final 5% of the purchase price under a Sale and Purchase Agreement prescribed by the Housing Developers (Control & Licensing) Regulations 1989 must not (for whatever reason) release the same before the expiry of the stakeholding period(s) and/or in contravention of Clause 23 of the Schedule G Agreement or Clause 26 of the Schedule H Agreement as the case may be.

PART IX : MISCELLANEOUS

27. Solicitor to state his name with his signature

A solicitor attesting or witnessing any document shall write or affix his name clearly with his signature.

28. Solicitors to give prompt reply to clients or fellow Solicitors

A Solicitor must promptly reply to the correspondence of a client or a former client as well as fellow Solicitors with regard to that client's matter.

CONVEYANCING PRACTICE RULING

The Bar Council makes the following ruling:- 

The Solicitors' Remuneration in respect of any of the Security Documents pertaining to any facilities granted under the Islamic Syariah Principles by any financial institutions (e.g. under the Al-Bai Bithaman Ajil principles) to the Borrower shall be as follows:- 

1. Preparation of the Principal Instrument (in practice, the Property Sale Agreement) or any other document required by the financial institution to be the Principal Instrument :
   
   The Fees according to the Fourth Schedule of the Solicitors' Remuneration Order 1991 (SRO) shall be based on the amount being the principal sum of the facility(ies) provided or granted by the financial institutions to the Borrower (including the insurance premiums payable under the takaful scheme, if relevant and applicable).
   
   The SRO scale fees SHALL NOT be based on the amount of the Sale Price or the amount as stated in the Property Sale Agreement, Deed of Assignment or the Charge Annexure or the Debenture being the amount which the Borrower or Security Party(ies) has or have covenanted to repay the financial institutions (i.e. the amount being the principal amount together with the financier's margin of profit).
   
   
2. The other Security Documents, that is, the Novation Agreement or the Property Purchase Agreement, the Deed of Assignment, the Charge Document(s), Debenture(s) or any other security documents required by the financial institutions as security for the grant or availability of the facility(ies) under the Islamic principles shall be deemed to be Subsidiary Instruments.

   The fees for each of the Subsidiary Instruments shall be one tenth (1/10) of the full scale cost of the Principal Instrument or RM1,000 whichever is the lower.

3. Power of Attorney (if required) shall be one tenth (1/10) of the full scale cost of the Principal Instrument subject to a minimum of RM100.00 and a maximum of RM200.00.
   
   
4. Discharge of Charge - Fees will be in accordance with the Third Schedule of the Solicitors' Remuneration Order.
   
   
5. Disbursements :
   1. Ad valorem stamp duty as may be currently chargeable on the amount of the loan facility as stated in the Principal Instrument (N.B.  Government Housing Loans are exempted)
   2. Registration or Filing fees
   3. Registration fees for Power of Attorney
   4. Search fees
   5. Miscellaneous expenses not exceeding RM50.00
   6. Actual out-of-pocket expenses for traveling and other incidental expenses to be properly itemized and quantified.

The above Ruling shall come into effect on the 1st day of August 1998.

Dated this 10th day of July, 1998.