Section 16e — ADVOCATES ORDINANCE (SABAH) (AMENDMENT) ACT 2017

(2)

Every advocate shall on each occasion he applies for an Annual Certificate pay to the Law

Society a contribution of such sum as the Law

Society may from time to time determine and the

Law Society shall pay that contribution into the

Fund.

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(3)

Notwithstanding subsection (2), an advocate who applies for an Annual Certificate shall be required to pay half of the contribution so determined if the certificate to practise for which he proposes to apply is valid for less than six months.

(4)

The Law Society may invest any monies out of the Fund which are not immediately required for any other purposes and, for the purposes of this section, the Law Society shall have full powers of trustees under any written law.

(5)

The Law Society may insure the Fund with any registered insurance business in Malaysia for any purpose and on any term as the Law Society may consider expedient.

(6)

There shall be carried to the credit of the

Fund—

(a)

all annual contributions paid to the Law

Society in pursuance of subsection (2);

(b)

all interests, dividends, and other income or accretions of capital arising from the investments of the Fund;

(c)

any proceeds of any realization of any investments of the Fund;

(d)

all sums received by the Law Society under any insurance effected by the Law Society under subsection (5); and

(e)

any other monies which may belong or accrue to the Fund or be received by the

Law Society in respect of the Fund.

(7)

All monies from time to time forming part of the Fund and all investments of the Fund shall be applicable—

(a)

for payment of any costs, charges and expenses of establishing, maintaining and administering the Fund;

Ordinan Peguam Bela (Sabah) (Pindaan)

(b)

for payment of any premiums on insurance effected by the Law Society under subsection (5);

(c)

for the payment of any grants which the Law Society may make under subsection (8); and

(d)

for payment of any other sums payable out of the Fund by virtue of this section.

(8)

Where it is proved to the satisfaction of the

Law Society that any person has sustained loss in consequence of dishonesty on the part of any advocate or clerk or servant of an advocate in connection with that advocate’s practice in Sabah as an advocate, or in connection with any trust of which that advocate is a trustee, subject to this section, the Law Society may, if it thinks fair and reasonable, make a grant to that person out of the

Fund for the purpose of relieving or mitigating that loss.

(9)

If in any year there has been neither an application made for a grant from the Fund nor a grant made from the Fund, the Law Society may in its discretion transfer from the Fund all interests, dividends and other accretions of capital arising from the Fund, or any part thereof, to a Fund of the Law Society established for the purposes of purchasing or maintaining a library for the use of the members of the Law Society and to a fund established for the purpose of providing legal aid.

(10)

A grant may be made under this section whether or not the advocate had a valid certificate to practise when the act of dishonesty was committed and notwithstanding that subsequent to the commission of the act the advocate has died or had his name removed or struck off the roll or has ceased to practise or has been suspended from practice.

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(11)

On any grant made by the Law Society under this section to any person in respect of any loss—

(a)

the Law Society shall to the extent of the amount of the grant be subrogated to all such rights and remedies as the person to whom the grant is made may be against the advocate, clerk or servant in respect of the loss; and

(b)

the person to whom the grant is made shall have no right by way of bankruptcy or other legal proceedings or otherwise to receive any sum out of the assets of the advocate, clerk or servant in respect of the loss until the Fund has been reimbursed with the full amount of the grant.

(12)

Reference in paragraphs (11)(a) and (b) to any person to whom the grant is made or to the advocate, clerk or servant shall include, in the event of his death, insolvency or other disability, reference to his personal representatives or any other person having authority to administer his estate.

(13)

The Law Society may make rules in respect of the procedure to be followed in giving effect to this section and in respect of any matters incidental, ancillary or supplemental thereto or concerning the administration or protection of the Fund.

(14)

The income derived from the Compensation

Fund shall be exempted from income tax and all other taxes, and the Fund shall be an institution approved for the purposes of section 45 of the

Income Tax Act 1967 [Act 53], payments to which shall be good deductions for income tax purposes in arriving at the aggregate income of the person making the payment for the relevant year.”.

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