PART II" (Hansard, 28 October 1985)

§ The Solicitor-General for Scotland

The amendments are simple in essence and introduce a matter of some novelty in Scotland. They allow Scottish solicitors to incorporate themselves into companies under the Companies Acts, instead of being able to practise only as individuals or in partnership. Similar provision has already been made for English solicitors in the Administration of Justice Bill, and these amendments have the support of the Law Society of Scotland.

Hon. Members may wonder why such a simple change requires such lengthy amendments. It is because it seemed sensible to go through each provision of the Solicitors (Scotland) Act 1980 making clear to what extent it is to apply to the new incorporated practices, and hon. Members will have noted that most of the amendments are variations on the theme after "solicitor", insert "or incorporated practice". We have also decided to proceed by amending the 1980 Act rather than producing separate, free standing provisions, so that almost all provisions on Scottish solicitors will be found in a single Act. The 1980 Act will, of course, be reprinted with the amendments in "Statutes in Force" and will also be easily available in its revised form to Scottish practitioners in the "Parliament House Book". Because of the length of the provisions, an amendment has been tabled to include a reference to solicitors in the Long Title.

The amendments provide that the incorporated practices, although not themselves solicitors, will in general be able to do the things which a solicitor can—other, of course, than such things as appearing in court which, by their nature, require an individual. The shareholders and directors of the incorporated practices will generally have to be practising solicitors and will, therefore, be persons who are subject to professional discipline as individuals. It will be an offence to pretend to be an incorporated practice as it is at present to pretend to be a qualified solicitor.

Incorporated practices will be subject to the same disciplinary procedures and rules, with some modification, on such matters as accounts, as are individual solicitors. They will also have to contribute to the Scottish solicitors guarantee fund and to be covered by idemnity insurance. There will therefore be no diminution in the protection afforded to solicitors' clients whose interests the Government and the Law Society agree must remain paramount.

The matter was not debated in detail in this House, either in Committee or on Report, but in view of the provisions that have already been made for England and Wales and of the considerable consideration that has already been given to the issue by the Law Society of Scotland, I hope that the amendments commend 724 themselves to the House. It may seem odd to bring in such lengthy amendments at this stage, but this is a worthwhile opportunity to seize, and I know that it is much appreciated by the Law Society of Scotland.