Practice Notes

Remuneration in respect of Non-Contentious Business
Date Posted:1 December 2004
Updated: 16th February 2005

The legal profession in Malaysia is governed by the Legal Profession Act, 1976 ("the LPA"). The LPA defines the term "contentious business" as "business done by an advocate and solicitor, in or for the purpose of proceedings begun before a Court of justice, tribunal, board, commission, council, statutory body or an arbitrator". Accordingly, "non-contentious business" must be taken to mean business other than contentious business.

Section 113(3) of the LPA empowers the Solicitors Costs Committee, which is a committee comprising the Chief Justice (or his nominee), the Attorney General (or his nominee), the Chief Registrar (or his nominee) and four advocates and solicitors nominated by the Bar Council, to make general orders prescribing and regulating in any manner as they think fair and reasonable the remuneration of advocates and solicitors in respect of non-contentious business.

Pursuant to powers granted under s. 113, the Solicitors Costs Committee has enacted the Solicitors Remuneration Order 1991 ("the SRO") which came into force on 1 January 1992. The SRO prescribes fees by way of fixed scales in respect of the following types of non-contentious business :-

(a) Sales, purchases or other forms of conveyances of immovable properties;
(b) Tenancies/leases and agreements for tenancies/ leases;
(c) Discharges of Charges/Deeds of Reassignment pertaining to charged/assigned properties;
(d) Charges, Debentures, by way of a fixed or floating charge, and other Security Documents; and
(e) Preparing, filing or witnessing of miscellaneous documents.
The effect of the SRO is that solicitors are not permitted to charge fees which are lower than the prescribed scale fees.

Effective 1 November 2004, the Bar Council implemented the Solicitors' Remuneration (Enforcement) Rules 2004 ("the Enforcement Rules"). In effect, the Enforcement Rules state that solicitors who breach the "no-discount" rule will be subjected to disciplinary proceedings.

On 8 December 2004, the Bar Council issued Guidelines on Waiver of Fees in Conveyancing Matters by way of Circular No. 62 / 2004.

On 28 December 2004, the Bar Council issued Circular No. 66 / 2004 entitled "Enforcement of the Solicitors Remuneration Order."

Links:

For the full text of the Solicitors Remuneration Order 1991, click here.

For the full text of the Solicitors Remuneration (Enforcement) Rules 2004, click here.

For the full text of the Notice to be displayed pursuant to the Solicitors Remuneration (Enforcement) Rules 2004, click here.

For the full text of Circular No. 62 / 2004 - Guidelines on Waiver of Fees in Conveyancing Matters, click here.

For the full text of Circular No. 66 / 2004 - Enforcement of the Solicitors Remuneration Order, click here.

For our view on the Solicitors Remuneration Order 1991 and the Solicitors Remuneration (Enforcement) Rules 2004, click here.

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