Lawyers puzzled why LLP amendments won’t be tabled

KUALA LUMPUR: Lawyers are shocked by Attorney-General Tommy Thomas asking for a revamped Legal Profession Act 1976 (LPA) instead of seeking the tabling of the ready Limited Liability Partnership Act 2012 (LLP) amendments in Parliament, says advocate and solicitor Arun Kasi.
The legal fraternity were looking forward to seeing the LLP amendments tabled before the Parliament in the upcoming July session but the AG seems to prefer a revamped LPA to be drafted for tabling, he said.
"This news, coming from an ex-fellow lawyer, has brought a shock to me and to many lawyers. Nothing is perhaps more saddening for lawyers than that the blessing of the LPA Act 2012 could not come into practical force for six years," he said in a statement today.
"This is a shame for legal profession, as lawyers themselves cannot ensure that a law passed for their benefit comes into practical effect. This was the sad state of legal profession under the old government."
The required amendments had been drafted and is ready for being tabled before the Parliament. In fact, it was supposed to be tabled in the last Parliamentary session in March but missed under the administration of the previous government.
Limited Liability Partnership Act 2012 came into effect six years ago in December 2012. One of the three professions allowed for purposes of forming limited liability partnership is legal profession. Despite that, apparently, Legal Profession Act 1976 (LPA) need to be correspondingly to amended to avail LLP to lawyers which was not done.
"LLP for lawyers has become a norm in many established jurisdictions such as the UK, Singapore, Hong Kong, etc. Lawyers there commonly practice as LLP. Their liability in practice is limited to the assets of the LLP and they do not bear personal liability beyond that," he said.
"This is unlike the conventional partnership, which is still the only mode of practice available for law firm partnership in Malaysia, where partners take unlimited liability. If and when LLP is implemented, the position will change and liability will be limited to the assets of the firm."
Kasi said most lawyers in Malaysia still practice as sole proprietors as many corporates including banks and insurers, will not give matters to sole proprietors as they want firms to be partnership in order to be in their panels.
"One of the biggest barriers in those sole proprietors forming partnerships is the fear of one having to take liability for others. This is a bread and butter issue for all lawyers in Malaysia."