79th
queensland law society
ANNUAL REPORT
www.qls.com.au
contents
LETTER OF TRANSMISSION
4
Our profile
5
Stakeholders
5
Our vision
5
QLS COUNCIL
SECTION/COMMITTEE REPORTS
qls policy Sections/Committees
47
47
Access to Justice/Pro Bono Section
47
Accident Compensation/Tort Law Section
47
Alternative Dispute Resolution Section
48
6
Business Law Section
49
2006/07 council members
6
Intellectual Property 50
2006/07 executive Committee members
6
and Information Technology Committee
50
Franchising Committee
50
Banking and Financial Services Committee
51
Revenue Law Committee
52
Insolvency Law Committee
52
Industrial Law Committee
52
incoming president
7
Future direction
7
CEO’s review
8
Statistics of the legal
profession in Queensland
Corporate governance
10
12
Council
12
Executive Committee
12
President
12
Chief executive officer (CEO)
13
Senior management team
13
Finance and administration
13
Management profiles
14
Organisational chart
16
Children’s Law Section
53
Company Law Section
54
Criminal Law Section
54
Elder Law Section
57
Family Law Section
58
International Law/Relations Section
59
Litigation Rules Section
60
Practice Development 61
and Management Section
61
Equalising opportunities in the law Committee
61
Property and Development Law Section
62
17
Construction and infrastructure Committee
64
Membership and corporate services
17
Planning and Environment Committee
64
Departmental reports
Marketing and communications
22
Succession Law Section
65
Finance and information technology
27
Young Lawyers Section
65
Human resources
28
Professional standards
29
Legal and policy
36
Secretariat
44
Special projects
45
District law Associations
66
Senior counsellors
67
FINANCIAL STATEMENTS
69
High achievers... the top graduates of the 2005 and 2006 specialist accreditation
programs were recognised in an awards ceremony at the 2006 Christmas
Breakfast with the Chief Justice, held on 1 December. From left, they are Jennifer
Hetherington-Rice of Thynne & Macartney (family law), Rebecca Castley of Mullins
Lawyers (property law), Ross McConaghy of Jensen McConaghy (personal injuries),
Sean Walsh of Miller Harris Lawyers (business law), Andrew McGinness of Ryan &
Bosscher (criminal law), Geoff Hancock of Russell & Company (commercial litigation)
and Robert Cumming from the Public Trustee of Queensland (succession law).
your society
queensland law society 2006/07 LETTER OF TRANSMISSION
1 September 2007
Hon Kerry Shine MP Attorney-General, Minister for Justice and
Minister Assisting the Premier in Western
Queensland GPO Box 149 BRISBANE QLD 4001
Dear Attorney
I am pleased to present you with the Queensland Law
Society Inc Annual Report for the 2006/07 financial year, the
end of which fell during my term as President.
I commend this report to you.
Joe Pinder
President 2006/07
Incoming President’s dinner 2006: Attorney-General
and Justice Minister Linda Lavarch congratulates
incoming QLS President Joe Pinder.
Incoming President’s dinner 2006: Joe Pinder, right,
with Immediate Past President Rob Davis and VicePresident Megan Mahon.
79th
annual report
www.qls.com.au
Our profile
Queensland Law Society is the professional association for
more than 7000 solicitors in Queensland. It is incorporated
under an Act of Parliament – the Legal Profession Act 2004 – and is governed by a Council, elected by the membership.
While the Society is defined as a statutory authority in
the Financial Administration & Audit Act, it remains an
independent professional body, subject to the governance
of its elected Council. The Attorney-General is represented
by a nominee who is a Queensland solicitor in private
practice.
The Society is funded from a number of sources, including
annual fees paid by its members. Any Australian legal
practitioner or Australian-registered foreign lawyer is eligible
for full membership of the Society. Associate membership is
also available.
The Society has specific statutory responsibilities in relation
to the regulation and discipline of solicitors in Queensland.
In addition to its statutory responsibilities, the Society has
objectives including the preservation and maintenance of
the integrity of the profession.
Stakeholders
The Society has a wide range of stakeholders including:
• our members
• the legal profession
• the Queensland Government
• the judiciary
• the people of Queensland
• government agencies
• advocates for law reform
• legal educators
• law students.
Our vision
QLS leads and promotes a strong, independent profession
of the highest integrity which serves the community
according to law and justice.
The functions and responsibilities of the Society include:
• issuing of practising certificates and maintaining records
relating to solicitors
• providing continuing legal education for solicitors
• providing services and support to members
• researching and making submissions to government on
matters of legal importance
• investigating complaints of unsatisfactory professional
conduct against solicitors referred to it by the Legal
Services Commission
• administering the Fidelity Guarantee Fund
• trust account controls and receivership of trust property
• providing a public referral service for solicitors and
mediators.
Increasing community understanding of the law, helping
protect the rights of the individual, and advising the public
about benefits solicitors can provide are principle objectives.
The Society conducts ongoing programs to inform
the community about the law and the legal profession
including the Schools and Community Education Service
and promotion of pro bono (free) work undertaken by the
many solicitors who provide legal advice to charities, other
organisations and individuals.
20 years on: Tony Fitzgerald QC hands the bound
copy of the Fitzgerald Report to Premier Mike Ahern
on 7 July 1989. (Image courtesy of State Library of
Queensland, image number 78930.)
your society
queensland law society 2006/07 QLS COUNCIL
2006/07 council members
Joe Pinder (President) Megan Mahon (Vice-President) Don Armit Ian Berry Peter Eardley Lyn Galvin Raoul Giudes Brian Kilmartin (Attorney-General’s nominee)
2006/07 executive Committee members
Joe Pinder Megan Mahon Ian Berry Peter Eardley
Front row (l to r): Joe Pinder (President), Megan Mahon (Vice-President).
Back row (l to r): Lyn Galvin, Peter Carne (CEO), Brian Kilmartin, Peter Eardley, Ian Berry, Don Armit.
Absent: Raoul Giudes
79th
annual report
www.qls.com.au
incoming president
Future direction
On Friday 27 July 2007 at the President’s
Dinner, the incoming President of the
Queensland Law Society, Mrs Megan
Mahon, shared some of her thoughts about
the profession and QLS.
I never ever considered any other
career or any other profession other
than the law. It is a decision and a
commitment that I have never ever
regretted and truly tonight is the
proudest moment of my professional
life. That I can share it with my family
and so many of my colleagues and friends adds so much
pleasure to that pride.
I understand that I am the youngest ever President of the
Society since it began in 1928 which doesn’t mean that
much really, any more than the fact that I am only the third
woman to occupy the job. I don’t put much store in defining
people by age and gender and I have always believed that
the best person available should do the job. There is no
special merit in age or gender.
Once upon a time – and I say that carefully given that I
am the youngest President ever – we used to talk about
the legal fraternity and it seems to me that term has
almost vanished. We still talk to some extent about the
legal profession but even that term would appear to be
under threat with the ever-increasing use of the pernicious,
pervasive and frankly demeaning term ‘legal industry’.
I also believe that we solicitors have a wider duty to our
community beyond just our clients. We are an integral part
of what I might term the ‘law and order’ community which
includes the judiciary, our professional brothers and sisters
at the Bar, governments at all levels which enact laws and
the police. I am delighted that the Police Commissioner
Bob Atkinson can be here this evening and I want the
Law Society and the Police Service to develop a sound
relationship based on mutual respect and an understanding
of our particular roles.
Such relationships within the ‘law and order’ community do
not compromise the special responsibilities and particular
roles of the individual members but, rather, allow them to
better discharge those responsibilities and roles because
there is a clear understanding of how and why the others
operate.
Megan Mahon
President 2007/08
We are a profession which has proud tradition and history.
We don’t – or, at least, we shouldn’t – just offer a commercial
service and the day that the term ‘billable hours’ becomes
the mantra of the profession will be the day that we
surrender that tradition and lose our soul.
Treating clients as people and not just as some sort of
production-line customer marks a profession. Clients come
to us wanting if not certainty in every situation then at least
the expectation that we will take a genuine professional
interest and offer informed honest advice. Of course, in
some areas of practice, we cannot hope – however diligent
and committed we are – to deliver the best outcomes for
all clients but if we can honestly say that we did our best
for that client, then we have discharged our ethical and
professional duty.
QLS Vice-President Megan Mahon congratulates
Justice Ann Lyons after her swearing-in ceremony
in July 2006.
your society
queensland law society 2006/07 CEO’s review
For the year 2006/07
The presentation of the Annual Report
is an opportunity for an organisation
to consider its achievements over the
previous twelve months.
In doing so it is important that such
a review benchmarks the QLS
achievements against the objectives
identified in the Society’s Strategic
Plan. This way the Society can ensure
that it is delivering on the purpose and
objectives for which it exists.
Purpose and Objectives of the Society
These are:
• to represent the professional interest of members both
generally and individually in their relations with the
community
• to represent the professional and community interest
in the processes by which the law is made and
administered
• to advance the interest of the solicitors
• to strengthen the community’s understanding and
confidence both in the legal profession and in the
process by which the law is made and administered
• to foster the rule of law and to promote improvements and
developments in the law
• to preserve and maintain the integrity, status and
independence of the legal profession
• to act as a public voice for the expression of members’
opinions
• to promote, and ensure compliance with, high standards
of professional and ethical conduct, professional practice
and client service among legal practitioners and to
provide advice and education in relation to such matters
• to provide and coordinate programs relating to continuing
legal education, practice management and accredited
specialisation for solicitors
• to investigate and provide guidance in relation to matters
of ethics, professional conduct and disciplinary breaches
• to provide a useful and cost-effective range of services,
facilities and benefits to members
• to afford means of reference for the amicable settlement
or adjudication of professional disputes or differences
• to promote and encourage the use by members of
efficient methods of accounting and office management
in relation to their professional practices
• to provide appropriate library services for its members
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annual report
• to facilitate the accessibility of legal services to all
sections of the community, including the provision of
legal aid
• to provide a range of support services to members and
their employees that promotes, directly and indirectly, the
personal welfare of members and their employees.
Benchmarking
The Departmental Reports highlight the achievements of the
QLS. I urge members to read these Reports as they develop
a clear picture of the extent of work done by your Society in
delivering on the objectives outlined above.
As CEO, I acknowledge some of the important
achievements:
Legal and Policy
This department is fundamental to the Society achieving
many of its objectives.
The number of professional staff in this department has
been increased with the consequent increase in output. This
increase in output is dramatically highlighted by the graph
showing the huge jump in the number of policy submissions.
One of the most important roles of the Society is the
ability to respond, in many cases within totally unrealistic
timeframes, to Governments, both State and Federal, with
regard to proposed legislative changes.
Your Society, in the last twelve months, has been extremely
effective in carrying out this role. The ability of the Society
to respond is due to the excellent work done by various
QLS Committees. To better utilise the expertise on these
Committees, I appointed Matthew Dunn, Principal Policy
Officer, and Amanda Donnelly to work with all QLS
Committees to facilitate their ability to deal with legislative
matters affecting their area of law. This has generated a
dramatic increase in the capacity of the Committees to
respond.
It is an area that I continue to develop as I believe it is
important that the Society give all its members who are
interested the opportunity to participate in the development
of policy.
In the past year a lot of the time of the General Counsel
was taken up in dealing with the Department of Justice and
Attorney-General (JAG) on the Legal Profession Bill 2007.
This work also involved redrafting the Society Rule.
The proclamation of the Legal Profession Act 2007 on the
1 July 2007 will introduce Incorporated Legal Practices (ILPs)
and Multi-Disciplinary Practices (MDPs). The department
has developed information kits to assist those law firms
looking to take advantage of the ability to incorporate.
www.qls.com.au
ceo’s review
For the year 2006/07
In the past year the QLS Ethics Committee has been
established and Neil Watt has been engaged as the QLS
Ethics Officer. The work of the Ethics Committee, the Ethics
Officer and our Client Relations Centre delivers on the very
important objective of promoting and ensuring compliance
with the highest standards of professional and ethical
conduct, professional practice and client service among
legal practitioners and also the provision of advice and
education in these matters.
Membership and Corporate Services
This department has well and truly delivered on the
objective of providing and coordinating programs relating to
continuing legal education (CLE), practice management and
accredited specialisation for solicitors. Its report shows the
extensive work done in these areas. The delivery of CLE in
both Brisbane and regional areas has been comprehensive
and successful.
An improvement in the area of CLE has been the biannual
publication of the Events Book which details all the CLE
events throughout the State. This is an excellent publication
which assists all members to plan their CLE attendances
over a six-month period.
Online registration for CLE events has been facilitated
through the introduction of EventsPro software. This
software program also assists the CLE staff in the planning
and implementation of major conferences.
An outstanding success in the CLE calendar is the annual
Symposium which was held in Brisbane at the Convention
Centre in 2007. Due to the relevance of the topics and the
quality of the speakers this Symposium attracts a large
number of delegates.
Marketing and Communications
This department was set up by me to better coordinate the
identification and provision of services to QLS members as
well as develop new streams of income from commercial
activities. This department also develops and manages our
avenues of communication with our members, the most
important being the monthly publication Proctor and the
QLS website.
The department is headed up by Roz Cooper who has
had extensive experience in the advertising and marketing
arenas. She has built up a dedicated professional team. This
department has implemented a consistent ‘branding’ of all
QLS publication and communication materials. This ensures
the same ‘look and feel’ to all QLS communications.
A significant financial benefit to flow from this new
department has been the dramatic increase in income from
advertising and sponsorship. This has enabled the Society
to add value to many of our commercial services.
your society
An important objective of the QLS is to strengthen the
community’s understanding and confidence in the legal
profession and in the processes by which the law is made
and administered. The Society seeks to deliver on this
objective through its Schools and Community Education
Service (SCES). The Marketing and Communications
department runs this scheme which assists legal educators,
students, community groups and the general public in
gaining information about the law.
QLS members will, in the past twelve months, have noticed
a change in the Proctor magazine. It has significantly
grown in the number of pages published. It also seeks to
address the needs of all our membership whatever their
demographic. I believe Proctor communicates in an effective
and relevant way with the QLS membership.
Lexon Insurance Pte Ltd
Lexon provides professional indemnity insurance to
solicitors in practice in Queensland. Lexon is wholly owned
by QLS and I am one of two QLS-appointed Directors on
the Lexon Board.
QLS has worked very closely with the Lexon Board in
the past twelve months to implement the insurance
levy calculation model. QLS provides accounting and
information technology services to Lexon.
Lexon has performed outstandingly in the past financial year
delivering a pre-tax profit of $16 million.
Finance Department
The past twelve months have seen the Society deliver on its
objectives both to its members and the community and also
deliver a surplus of $569,000. This is a good result.
I wish to acknowledge the excellent work done by my
Finance Director Anthony Walduck.
Conclusion
QLS has, in its Strategic Plan, set high benchmarks to serve
the profession. This has been an outstandingly successful
year for your Society.
In the financial year 2006/07, your Society has well and truly
met, and in some areas exceeded these benchmarks.
I acknowledge the great work done by the staff at QLS in the
delivery of these good results.
Peter Carne
Chief Executive Officer
queensland law society 2006/07 Statistics
of the legal profession in Queensland
Practising certificates issued
Membership
1996/97
2005/06
2006/07
Principal level
2162
2441
2415
Members
Conditional level
225
1441
1900
Employee level
2329
3227
Total
4716
7109
1996/97
2005/06
2006/07
5026
7058
6528
Associate members
56
113
359
3177
Student members
–
776
859
7492
Complimentary members
26
54
56
Honorary members
11
12
20
5119
8013
7822
Total
Admissions to practise in Queensland
Admissions
1996/97
2005/06
2006/07
529
784
896
Age of solicitors practising in Queensland
total: 7,967
1600
1464
1400
1269
1200
1159
number of solicitors
1000
909
907
809
800
600
568
400
337
298
200
143
104
0
< 24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70 >
age (years)
10 79th
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www.qls.com.au
Statistics
of the legal profession in Queensland
Geographical distribution of solicitors
practising in Queensland
total: 7,592
4000
3651
3500
3000
number of solicitors
2500
2000
1500
1000
793
804
699
500
380
302
257
132
117
126
205
104
22
sland
Q ueen
Western
ion
lle Reg
Townsvi
gion
mba Re
Toowoo
t
e C oas
Sunshin
Region
mpton
Ro ck ha
n
y Regio
M ac k a
Region
Ipswich
ion
Hervey
Bay to
Gladsto
ne Reg
o a st
Gold C
Region
Cairns
Brisban
e South
Suburb
s
s
Suburb
e North
Brisban
Brisban
e Cit y
0
region
Gender of solicitors
Practising in Queensland
total: 7,967
Female
3189 (40%)
Male
4778 (60%)
your society
queensland law society 2006/07 11
Corporate governance
Corporate governance
Corporate Governance
Good corporate governance is essential to ensure our
strategic goals, performance targets and operational
objectives are met within our legal and policy framework.
Strict adherence to best practice corporate governance
principles is unconditional at the Society.
Our procedures, policies, practices and operation are
founded on a clear determination to operate ethically,
honestly and effectively and a belief that performance must
be benchmarked to the highest standards.
Our primary responsibilities include:
• providing services to our members
Council meets regularly throughout the year and provides
the policy directions for the Society. A network of Sections/
Committees in a wide range of areas assists Council in the
performance of its duties.
The Council members for 2006/07 are:
Joe Pinder (President) Megan Mahon (Vice-President) Don Armit Ian Berry Peter Eardley Lyn Galvin Raoul Giudes Brian Kilmartin (Attorney-General’s nominee)
• representing and promoting the profession
• discharging our statutory functions.
These tasks can only be done in a planned, coherent way
if we have a system that allows flexibility, ongoing review,
accountability and secure safeguards against any possible
failure.
Our commitment to achieving the best possible organisation
extends naturally to ensuring that we have the best available
people and that our team is dedicated to our core beliefs.
Council
The Society is governed, under the Legal Profession Act
2004, by an elected Council of not less than seven and not
more than twelve members namely:
• the President, Deputy-President and Vice-President
• members of the Society, elected or appointed under a
society rule, and
• an Australian legal practitioner appointed by the Minister.
Council is responsible for the development and continual
review of the Society’s strategic plan. This incorporates
setting the organisational goals, developing the strategies
to achieve those goals and setting performance indicators
to measure the Society’s performance against those goals.
It is also responsible for setting the annual budget and the
financial management of the Society’s affairs.
In addition to the members listed above, the Immediate Past
President is a council member for the year following that
person’s presidency.
Elections for Council are held in June of every second year,
with full Society members eligible to vote. The President is
elected for a term of one year, with the Deputy-President
succeeding to the office of President at the beginning of the
second term.
12 79th
annual report
Executive Committee
Four (4) members of Council, including the President, form
the Executive Committee.
The Committee usually meets every second month or
when necessary. The role of the Executive Committee is
to assist Council with administration of the Society and
implementation of Council’s directions.
The Executive Committee members for 2006/07 are:
Joe Pinder (President) Megan Mahon (Vice-President) Ian Berry Peter Eardley
President
The President leads the Council and ensures it focuses on
its key role of setting the corporate direction and goals and
monitoring the performance of the Society.
In this role, the President’s responsibilities include:
• chairing Council and Executive Committee meetings
and setting the agenda for business conducted at those
meetings
• ensuring an effective flow of information between the
Council and the organisation, through the CEO
• representing or speaking on behalf of the Society in
discussions or negotiations with key stakeholders,
including the media, government, the judiciary, the Bar
Association of Queensland, the Law Council of Australia
(LCA), and other Law Societies
• monitoring and reviewing the performance of the Council,
CEO and the organisation
• consulting and communicating with members to ensure
their views are heard and understood in Council – a
responsibility shared with all Council members.
www.qls.com.au
Corporate governance
Corporate governance
The President works closely with the CEO to ensure effective
corporate governance and this includes facilitating the
contribution of Council members to particular projects and
activities as detailed in the annual business plan.
Within this framework, it is common for a President to bring
a specific emphasis to one or more key issues when he/she
comes into office and this is an important factor shaping
priorities of the Council and the organisation during the term
of his/her presidency.
Chief executive officer (CEO)
The CEO is accountable to Council for overall performance.
The Council sets the strategic agenda by determining its
overall goals, priorities and policies and the CEO manages
the organisation to ensure resources are focused to achieve
those strategic goals.
The CEO also plays a key role in the development of the
strategic plan by identifying and analysing member needs,
risks and opportunities, political issues, formulating high
level and detailed strategies and informing Council of issues
and developments.
The role of the CEO includes:
• developing and overseeing implementation and reporting
to Council on the strategic plan and budget
• ensuring sound financial management, including
compliance with relevant financial management
standards and legislation
• ensuring sound corporate governance policies and
mechanisms
• representing the Society to Government and other key
stakeholders and ensuring the views of the Society are
communicated effectively
• representing and marketing the Society at seminars,
presentations and conferences
Senior management team
The Senior Management Team (SMT), the body responsible
for the day-to-day running of QLS, is chaired by the CEO
and includes all directors and senior managers. The
President can attend by invitation.
The SMT generally meets fortnightly. At every meeting
directors give a brief oral report on the activities and
achievements of their departments since the previous
meeting and highlight any significant issues for discussion.
Issues relevant to the strategic direction of the Society
are discussed as the SMT is primarily responsible for the
implementation of the Corporate Planning process.
Finance and administration
The Society has a Financial Management Practice Manual
which outlines general accounting policies relevant to
financial management and details specific financial
management policies developed to give effect to the
general policies.
Internal controls are in place to ensure protection of
assets and revenue. The CEO reviews internal controls on
an ongoing basis to ensure continued applicability and
relevance.
The Society has an Audit Committee whose roles and
responsibilities include:
• risk management and internal controls
• financial reporting
• compliance with laws, regulations and internal policies
• working with external auditors
• reporting responsibilities
• evaluating performance.
• contributing to national and international forums
including the Law Council of Australia, LAWASIA and the
International Institute of Law Association Chief Executives
• leading and providing direction to the Senior
Management Team
• overseeing the development and continued improvement
of the Society’s staff, technologies, assets, systems,
policies, work practices and procedures to ensure
effective and efficient operations.
QLS CEO Peter Carne is ushered into the Caxton
Hall of Fame by Attorney-General and Minister
for Justice and Women Linda Lavarch and her
husband and Dean of the QUT Law School,
Professor the Hon Michael Lavarch.
(Picture: Julien Star Photography)
your society
queensland law society 2006/07 13
CORPORATE GOVERNANCE
Management profiles
Chief Executive Officer
Director, Professional Standards
Peter Carne BA LLB FAICD FAIM
David Franklin BBus
Peter commenced as the Chief Executive
Officer on 6 June 2005.
David Franklin completed a Bachelor of
Business Degree at the Central Queensland
University. He has been a CPA (Certified
Practising Accountant) since 1976. He
joined the Queensland Law Society as an
investigating accountant in January 1985.
He was the Manager of the Society’s Audit branch from
1989 to December 2002 and the Assistant Director of the
Professional Standards department from 1994 to 2002.
Peter has extensive experience as
a practising solicitor having, prior to
commencing as the CEO, been in private
practice for 30 years. During that period he
was a partner in a Brisbane CBD law firm for 25 years. In
1992 Peter was elected to the Council of the Queensland
Law Society. He held various positions on QLS Committees.
He was President of QLS from 1999-2000. He then held the
position as chair of the Specialist Accreditation Board.
Peter is a Director of Lexon Insurance Pte Ltd and The College of Law Queensland Pty Ltd. He is a Fellow of
the Australian Institute of Company Directors (FAICD) and a
Fellow of the Australian Institute of Managers (FAIM).
He was awarded the Centenary Medal for his contribution to
the legal profession.
Secretary to the Society
Bernie O’Donnell LLB
Bernie O’Donnell is a graduate of Victoria
University, Wellington, New Zealand. He
was admitted as a Barrister and Solicitor of
the High Court of New Zealand in 1973 and
the Supreme Court of Victoria in 1984. He
was admitted as a Solicitor of the Supreme
Court of Queensland in 1985. He practised as an employed
solicitor, a sole practitioner, a partner in private practice
and as the Officer-in-Charge of the Legal Aid Office at
Maroochydore prior to joining the Society in 1989 as
a solicitor in the Law Claims department. He became
Assistant Secretary/Insurance Manager in 1996, Deputy
Secretary of the Society in 1998 and Secretary in 2002.
General Counsel
Director, Finance AND INFORMATION TECHNOLOGY
Anthony Walduck CA
Anthony completed a Bachelor of Commerce
at the University of Queensland and has
been a member of the Institute of Chartered
Accountants since 1994. Prior to joining
the Society as Director of Finance and
Information Technology he spent seven years
working for a chartered accounting firm and six years in
commerce, holding senior finance roles for various large
insurers.
Director, Membership and Corporate Services
Peter Lyons LLB LLM MA (Justice Studies)
Peter Lyons is a graduate of the Queensland
University of Technology and was admitted
as a solicitor in October 1986. He was further
admitted as a Solicitor of the High Court
in 1990 and admitted as a Barrister of the
Supreme Court of Queensland in 1995. He
began in his current position with the Society in October
2004 and previously had been Deputy General Counsel and
Manager, Investigations. He held legal positions with the
Crime and Misconduct Commission and was a practitioner
for 10 years in private practice.
Malcolm Hinton LLB (Hons) LLM GradCertAppMgt
Malcolm Hinton is a graduate of the
Queensland University of Technology. His
professional qualifications include: Solicitor of
the Supreme Court of Queensland, Barrister
of the Supreme Court of New South Wales
and Solicitor/Barrister of the Supreme Court
of the Australian Capital Territory. His career background
includes working as a police officer in Queensland and East
Timor, working in private practice and he was previously
the Society’s General Manager of Legal Investigations and
Prosecutions and Director of Professional Standards.
14 79th
annual report
Principal Advisor, Corporate Relations
Russell Grenning
Russell Grenning, Principal Advisor,
Corporate Relations, joined the Society in
March 2003. He has worked as a journalist
and as an advisor to senior Ministers in
the Queensland, Victorian and Federal
Governments and as a consultant to private
industry.
www.qls.com.au
CORPORATE GOVERNANCE
Management profiles
Manager, Marketing and Communications
Manager, Special Projects
Roz Cooper BA MBA MBus eBus Mgt AFAMI MAIM MAIPM
Sharon Burke BA PGDipPsych MPhil (Psych)
Roz has a background in advertising
and senior corporate marketing and
communications across many fields
including banking, market research, event
management, project management and
information technology; working with
organisations such as Woolworths, Commonwealth Bank
of Australia, Sydney Organising Committee for the Olympic
Games (SOCOG), Compaq/Hewlett-Packard and Ergon
Energy.
Sharon Burke is the Manager, Special
Projects and previously managed the
Professional Development department
(2004-2006) for the Queensland Law
Society. Sharon has broad, cross-industry
experience in the development and delivery
of professional development and accreditation programs,
project management and business development. Sharon
has worked as a consultant in the area of practice
management and business development and is also a
registered psychologist.
Roz joined the Queensland Law Society in September
2006 to drive a service focus in the development, and
marketing and communications of all the Society’s member,
professional and public services and the public image for
QLS and the legal profession.
Manager, Human Resources
Patricia Linn DipBusSHRM DipBusPMER
Patricia has over 20 years experience in
human resources both in consulting practice
and in management roles in both NZ and
Australia. Patricia has special expertise in
strategic HRM, change mangement and
organisational development having worked
across a broad spectrum of organisations both in the
public and private sector. Patricia has introduced a blend of
strategic and best practice to the Society and has an interest
in providing members with support in growing strong
businesses based on sound human resource principles.
your society
queensland law society 2006/07 15
Corporate Governance
Organisational chart
as at 30 June 2007
Office of the
President
Joe Pinder
Executive
Personal Assistant
to President
Kelly Morseu
Chief Executive
Officer
Peter Carne
Personal
Assistant to CEO
Margaret Mitchell
Manager Human
Resources
Patricia Linn
Manager
Marketing and
Communications
Roz Cooper
Director Finance
and Information
Technology
Anthony Walduck
Principal Advisor,
Corporate
Relations
Russell Grenning
Manager Special
Projects
Sharon Burke
Secretary
Bernie O’Donnell
Director
Professional
Standards
David Franklin
Director
Membership
and Corporate
Services
Peter Lyons
General Counsel
Malcolm Hinton
Finance
Elisabete Pousinho
Records
Kerry Davis
Investigations
Craig Smiley
Information
Services
Richard
Vankoningsveld
Principal Policy
Officer
Matthew Dunn
Information
Technology
Raj Reddy
Legal
Practitioners
Admissions Board
Melissa Timmins
Client Relations
Centre
Kerry Kelly
Facilities
Nita Leigh
Legal and Policy
Solicitor
Sarah Moore
Audit
Bill Hourigan
Continung
Professional
Development
Gill Richardson
Legal Practice
Consultant
Giles Watson
Receiverships
Glenn Forster
Continuing Legal
Education
Holly Bretherton
Ethics Officer
Neil Watt
Practice
Management
and Specialist
Accreditation
Stacey Rawlings
Manager Dispute
Management
Centre/ANA
Grace van Baarle
Corporate
Services
Ray Krause
16 79th
annual report
www.qls.com.au
Departmental reports
Membership and corporate services
Specialist Accreditation
Practice Management Course (PMC)
In 2006, Criminal, Business and Commercial Litigation
finalised their inaugural programs with 17, 10 and 17 newly
accredited specialists in each of their respective areas.
Ninety (90) PMC waiver/deferment applications were
reviewed by the PMC Committee during the 2006/07
financial year.
The Chief Justice’s Christmas breakfast, for the first time,
incorporated the Specialist Accreditation Achievement
awards. This was a well attended event which, by partnering
with Uniquest, we were able to provide to our accredited
specialists at no cost. QLS members could attend for $55.
The awards were an opportunity to celebrate specialist
accreditation.
A new process has been initiated to proactively ensure that
all newly appointed partners have fulfilled their requirements
for a principal-level certificate prior to holding themselves
out as a partner.
In 2007, Mediation and Taxation were successfully
implemented as new national areas of accreditation with ten
and three candidates currently completing the assessment
phase.
One hundred and seven (107) applications were received
initially. The final number was 97 (ten applicants have
withdrawn during the assessment phase – approximately
five prior to commencement of the assessment and five
after completing at least one assessment item). A final
comparative breakdown of applications is as follows:
2005
2007
Succession Law
11
14
Property Law
6
10
Personal Injury
27
27
Family
35
28
Mediation
n/a
10
Taxation
n/a
3
Total
79
97
(Family law was the only area with reduced numbers and
this area rejected six applications, and three candidates
withdrew.)
Past assessment resource kits were a great success with
final sales of 124, which generated $4,420 income which
we would not previously have seen. Ignoring the income,
this new initiative was very well received by all prospective
applicants as it provided them with a much greater insight
into the requirements of the program.
The Specialist Accreditation Board have distributed a Draft
Committee Protocol to all Committees. This document
will assist the Board in ensuring standardised procedures
are being followed by all Committees and will ensure new
Committees are aware of their roles and responsibilities.
This document has not yet been finalised.
Two hundred and four (204) participants completed the full
or partial PMC in the 2006/07 financial year.
QLS delivered a dedicated PMC Management Module for
Legal Aid for the second year. This was once again well
received by delegates.
The trust accounts module will need to be amended to
incorporate changes to the Act. College of Law have been
monitoring this and have commenced working on the
update of this module under the service agreement we hold
with them.
Resources
One thousand, two hundred and seventy-eight (1,278) DVD
orders were received for 2007 seminars/conferences.
Sixty-eight (68) of these are advance orders for future events.
Other
An ILP/MDP presentation was held on 1 June 2007. Thirty-nine (39) paying delegates attended plus 26 DVDs
were sold for this event. A full course manual was provided
to all delegates and has been distributed as part of the DVD
resource.
Initial discussions have been held with College of Law
regarding setting up an online course for ILP/MDPs and the
appropriate management systems required. The course
materials from the ILP/MDP presentation will form the basis
of this course.
Initial discussions have been held with College of Law
regarding developing the Trust Account Module from
PMC into a course aimed at legal support staff/practice
managers/bookkeepers.
This project will progress further once College of Law finalise
the changes required under the 2007 legislation for the Trust
Account Module of the PMC.
EventsPro has allowed more efficient management of
the program and easier dissemination of information to
candidates.
Specialist Accreditation and Practice Management
Manager Stacey Rawlings and her assistant
Melanie Thrupp facilitate specialist accreditation
for legal practitioners in fields such as family law,
personal injuries and taxation law.
your society
queensland law society 2006/07 17
Departmental reports
Membership and corporate services
Continuing legal education (CLE)
A total of 79 Brisbane-based
events were held between
1 July 2006 to 30 June 2007
(12-month financial period).
Approximately 4,293 delegates attended
Brisbane events (in person
or via videoconference)
and 1,840 DVD orders were
placed for these events.
Income from Brisbane event
registration and sponsorship
equated to $1,173,199 (ex GST).
The CLE Events Book detailed all
events for the six months from January
to June 2007 for both the Brisbane
and regional programs.
General feedback about
the CLE Brisbane-based
program has been, in
the majority, positive. In
particular, feedback about the 2006 Family Law Residential,
2006 Property Law Conference and 2007 Symposium was
extremely positive. Delegate feedback was collected from
each event via evaluation surveys, with mostly positive
comments about content, choice of speakers and venues.
This feedback was relayed to all speakers.
QLS Committees and Sections have been generous with
their time and expertise, in assisting to shape the technical
content for CLE programs. However, due to their time
constraints in meetings and lack of new incoming members
on Sections/Committees, programming has become more
and more challenging and often has been completed, in the
greater part, by the Manager of CLE. It is expected that with
the assistance of the incoming CLE Program Coordinator,
new programs can be developed without the assistance of
Committees and Sections. Additionally, existing programs
can be revitalised.
The Events Book was mailed out with the February and
July Proctors to save on direct mail costs. The Events Book
detailed all events for the coming six months for both the
Brisbane and Regional program.
Online registration through EventsPro was successfully
implemented in January 2007 and all CLE staff were trained
in how to use the software. This system was fully operational
by June 2007. There has been a slow to moderate take-up
of online registration.
It is recommended that a slightly discounted rate is offered
for online registrations to increase take-up from 2008
forward.
18 79th
annual report
A strategic focus on promotion of CLE events via endorsing
agencies has been a successful marketing strategy.
Endorsing agencies promoted QLS conferences and
seminars via their websites and electronic newsletters, with
endorsing agencies offered member rates in exchange for
promoting the events.
Endorsing agencies included Department of Justice and
Attorney-General, Society of Trust and Estate Practitioners
(STEP), Australian Institute of Management, Queensland
Police, Crime and Misconduct Commission, Australian Legal
Practice Management Association (ALPMA), Queensland
University of Technology, Bar Association of Queensland
and Legal Aid Queensland, amongst others.
Mediums such as Proctor, CLE News and QLS Update have
been used to successfully market upcoming events.
Additionally, targeted marketing emails (segmented by
area of practice, number of years in practice, and region)
have been an effective marketing channel to promote
conferences and seminars.
It should be noted that CLE
is currently undertaking
a survey into marketing
methods preferred by
QLS members in order to
ascertain the most effective
marketing strategies to be
employed for 2007/08.
Total regional registration
and sponsorship income
for the 12-month period of
2006/07 was $33,637, for a John Weeden, a commissioner of
the United Kingdom Criminal Cases
total of 58 regional seminars. Review Committee (CCRC), visited
Additionally, the Queensland Brisbane in March 2007 as a keynote
speaker at the QLS Symposium 2007.
Law Foundation supplied
a grant of $80,000 to
subsidise the regional program offering, producing an
actual regional CLE income for 2006/07 of $113,637.
Delegate feedback for the regional program for January to
June 2007 indicated:
• delegates were pleased with choice of speakers
• regional delegates especially valued the free retirement
planning/succession planning sessions
• delegates prefer a neutral venue as opposed to attending
at a law firm
• they would prefer it if all CLE was free
• topics of interest for consideration in upcoming programs
www.qls.com.au
Departmental reports
Membership and corporate services
Corporate Services
The Corporate Services Unit – which encompasses the
areas of call centre, publications, purchasing, reception,
room reservations, catering, video conferencing reservations
and general administrative services – has continued to
provide consistent support to all branches within the Society.
During the period 2006/07 the following results were
achieved within the Unit.
The Call Centre assisted with 35,129 calls received from the
public seeking assistance with referrals to member solicitors.
Assistance was also given to a further 37,189 incoming
telephone calls.
Together the CLE team, Paula Rowntree, Kerry McWhinnie, Amy Calvert, Holly
Bretherton, Rachel Castles and Leanne Connell host 145 seminars and
conferences in Brisbane and regional Queensland.
• there is an attitude in the regions at the moment that
they only attend for the CPD points as opposed to being
drawn by the program
• there appears to be little ‘emotional attachment’ to the
regional events.
The regional CLE events in the period January to June
period were reasonably attended. QLS is not, however,
currently capturing the entire possible regional market
segments (an example of this is the Gold Coast region
events which are generally poorly attended) and the
Regional CLE Coordinator is in the process of undertaking
regional member surveys to ascertain the reasons behind
this. Regional CLE program offerings need to be as robust
and diverse as the Brisbane program so our regional
members associate our CLE brand with high-quality,
cost-effective events. Garnering input from the District Law
Associations to assist with programming and marketing
regional CLE events has also proved challenging.
Some 65 elder law practitioners
attended the Elder Law Conference
on 14 June 2007 at Law Society
House.
your society
The central coordination of reservations for room and
resource allocation within Law Society House has been
enhanced with the purchase and implementation of ‘EMS’
room booking software. Introducing this software has
enabled clients to easily access and generate reservations
for the Society’s rooms, request resources and order
catering requirements via a web interface. Since the
inception of its use, 6,355 event hours have been reserved
from 1,191 bookings.
Corporate Services has continued to coordinate the
production of the QLS Diary. In accordance with contractual
agreements, the current suppliers have met their obligations
for delivery, allowing a timely dispatch. Members supported
the viability of the diary production by purchasing in excess
of 3,800 copies of the 2007 Diary.
The production and sale of the current update of the Land
Title Practice Manual authored by the Department of Natural
Resources and Water was once again well received and
supported by QLS members.
Public information brochures have continued to prove
popular with our members and the public. A total of 55,000
were dispatched during the year.
Denise Daigle, Call Centre: Denise responds to a wide variety of queries and
most regularly refers callers to solicitors all over Queensland.
queensland law society 2006/07 19
DEPARTMENTAL REPORTS
Membership and corporate services
Facilities management
Addlib, the library’s monthly newsletter,
continues to be published electronically with a
full archive available through the website.
This year has seen major improvements at
Law Society House. The façade rectification,
to address water ingress, was successfully
completed in December 2006 and is yet
to be tested by any significant downpour.
The second stage of this project – the
foyer refurbishment – is well underway, in
conjunction with an upgrade and refurbishment
of the lifts.
Much focus has been on implementing water
saving measures at Law Society House, in
particular, formulating the Water Efficiency
Management Plan, to meet the Water
Commission guidelines.
The library’s monthly Proctor page continues
to provide members with hints and tips for
locating and using legal resources that are
freely available on the internet.
Corey McDougal, Functions Officer:
Corey facilitates up to 45 functions at
Law Society House per week using an
average of 20 litres of tea and coffee
per day.
The evaporative cooling tower is the highest water user and
Law Society House’s Body Corporate, of which the Society
is the major stakeholder, has upgraded the chemical dosing
equipment to effect a reduction in the cleaning regime and
associated dumping of large volumes of water.
Law Society House, built in 1987, was not fitted with waterefficient toilets, urinals, showers or taps and these have now
either been brought into compliance with guidelines or are
scheduled works to be completed by April 2008.
In the first quarter of 2007, the Society has realised 33 percent reduction in water consumption in comparison
with the same period in 2006. It is expected further savings
will be realised once all works have been completed.
Library staff successfully fulfilled 5,497 research requests
over the year, and there were 2,706 recorded visits to the
library.
As a result of user feedback the standard turnaround time
for research requests was successfully reduced from
48 hours to 24 hours.
Access to the library’s catalogue was returned
to the members’ area of the QLS website, along
with access to the library’s own searchable
index to Proctor which provides members with
details of all articles published in Proctor since
its inception in 1982.
20 79th
annual report
Continuing Professional Development (CPD)
CPD Member Profile
A CPD module has been designed and implemented
to assist practitioners with the recording of their annual
minimum requirement. The module offers practitioners the
opportunity to access their online personal member profile
which is hosted on the QLS website.
This profile, also known as member register, captures all
QLS CLE activities, and also allows members to manually
record any relevant external events which they may have
attended throughout the year.
Audit 2006/07
General feedback from the profession regarding the
2006/07 CPD scheme year audit has been very positive and
informative.
Members’ Library
Addlib Alerts, a new current awareness service
which provides members with email notification
of recently published journal articles that match
their interests was successfully launched by the
library.
A review of the library’s loose-leaf collection
earlier in the year revealed that many
subscriptions could be replaced by online
services, giving greater access and
functionality for members who come in to use
the library’s collection.
Approximately 20 percent (1,446) practitioners were
randomly selected and it is pleasing to note an extremely
high level of compliance was achieved.
2007/08 Audit
The CPD Committee determined a further 20 percent of the
profession were to be randomly selected for this year’s audit.
Approximately 1,300 audit letters were mailed
to practitioners on Friday 1 June 2007 and
again, an extremely high level of compliance is
being experienced.
Maryanne Watson, Library Assistant
and Brendon Copley, Information
Services Officer (Library) assist visitors
to QLS Members’ Library who want
to access the comprehensive book
collection and online information
services.
www.qls.com.au
DEPARTMENTAL REPORTS
Membership and corporate services
National CPD Taskforce
The last meeting of the Taskforce was
held in Brisbane on 27 April 2007. The
fifth draft of the national draft statement
(endorsed by QLS Council in April
2007) was reviewed. The Taskforce
agreed to approach a broader range of
stakeholders to seek response to the
updated version.
Information gathered from the students,
together with other information obtained
through recent practice management
workshops conducted at the Society
in May will be used to develop a career
pathway program.
Learning and Development
Focus Groups
Following on from the above
presentations, series of focus groups
Together Gill Richardson, Relationship Manager
has been conducted with learning and
and Celeste Baker, CPD Administrator make up the
development managers from various
Continuing Professional Development section at QLS
legal firms. The purpose of these
that ensures practitioners remain updated with new
legislation and technology.
sessions was to discuss and gather
information which will assist in the
Member Relations – University Career Fair Days
development of a career pathway model, beginning with law
A QLS exhibitor’s table was organised for the 2007
graduates through to managing partners and all of the steps
Career Fair Days at Queensland University of Technology,
along the way.
Griffith University’s Nathan and Gold Coast campuses,
CPD Consultancy Services
and University of Queensland. Approximately 250 new
applications were received for student membership. To
This portfolio was originally designed and developed by the
create an interactive communication channel, regular news
Special Projects Manager and was moved into the Member
and information alerts are being forwarded to students via
Relations portfolio in February 2007. The take-up rate of
email.
firms requesting the delivery of the CPD compulsory unit
The next meeting of the Taskforce is
scheduled for 14 September 2007.
Responses received from these
stakeholders are to be reviewed and
discussed at this meeting.
Presentations to Practical Legal Training
(PLT) Students
Presentations have been delivered to PLT students at Griffith,
Queensland University of Technology and The College
of Law Queensland Pty Ltd. The presentations offered
information concerning benefits and services of QLS and
ways in which the Society could assist in career pathway
advice, commencing with progression from undergraduate
to postgraduate, newly admitted to management and
partnership opportunities and finally to leadership roles
within the profession.
presentations by QLS representatives at their firm’s location
has been very successful.
Peter Lyons
Director, Membership and Corporate Services
QLS Receptionist, Lalita Steiglbauer is
the first point of call for visitors to Law
Society House.
your society
queensland law society 2006/07 21
DEPARTMENTAL REPORTS
Marketing and communications
As part of the drive to improve services to our members
and strengthen the commercial position of QLS, the CEO
recognised that marketing and communications with
our members and stakeholders needed to be integrated
across the Society. Consequently, the new Marketing
and Communications department was established in this
financial year commencing with the appointment of the new
role of Manager Marketing and Communications in mid-September 2006 and the total team of eight, including
four new appointments, in place by February 2007.
The QLS website was also identified as needing a complete
review and upgrade for currency, ease of use, access,
relevance and usefulness. While we have made minor
improvements this year, this will be a major project for the
2007/08 year requiring consultation across the Society, our
members, stakeholders and the public, with consideration of
customer focused e-commerce and digital strategies.
The key focus areas within what remained of the financial
year were to establish the department; review the current
marketing and communications including use of the QLS
brand; in consultation with the Membership Services
department determine the gaps between member
needs and QLS member service delivery through market
research; improve internal communications; develop our
community relations program; and increase advertising and
sponsorship revenue to fund the growing needs of services
to our members.
Proctor grew during the year from an average of 64 to
68 pages per issue to an average of 76 to 84 pages. This
growth also prompted a change in the binding of Proctor,
which moved from staples (saddle-stitched) to glue
(burst-bound).
Proctor 2006/07
Besides being the flagship publication for Queensland
Law Society, Proctor affirmed its role as the Queensland
‘legal industry’ magazine with features like the launch of the
Careers and Recruitment section, ‘Law and the City’ pull-out
map, articles by the Hon Chief Justice Paul de Jersey AC,
and a young lawyers’ issue.
Proctor led other media with articles marking the 20th
anniversary of the Fitzgerald Inquiry in May 2007 making
headlines in The Courier-Mail and in other media, with followup articles by Premier Peter Beattie, Police Commissioner
Bob Atkinson and Opposition Leader Jeff Seeney the
following issue.
This widely read monthly section by Russell Grenning
included a number of distinguished interviewees including
new Justice Minister Kerry Shine, president of the Court
of Appeal Margaret McMurdo and Water Commissioner
Elizabeth Nosworthy.
QLS Marketing and Communications team, from left
(back row): Kaye Ahern, Marketing Administrator; Justin
Butkowski, Marketing Executive; Tina Gamvros, Business Development
Executive; Gabrielle Frisby, Communications Officer (Publications); John
Teerds, Publications Editor; (front row): Leanne Genn, Graphic Designer; Roz
Cooper, Manager, Marketing and Communications; (inset): Calista Bruschi,
Community Relations Officer.
Communications Audit,
Branding Consistency and Evolution
From the initial audit of our existing communications
channels, we are now rolling out marketing material with
consistent branding, including the evolved sub-branding
for the various service streams, a consistent design ‘look
and feel’, and improvements in readability. Adobe InDesign
training across most of the team has increased our in-house
graphic design capability to contain costs and increase
productivity.
22 79th
annual report
‘Back to Basics’ – the best of five years’ worth of Proctor
Back to Basics columns, by barrister Kylie Downes,
were consolidated into a book for sale through the QLS
website. By the end of June 2007, the sales have exceeded
200 copies, providing an income of $6,624.00.
As requested by Kylie Downes, her total share of the sale of
this book ($13 per issue) is being accrued for a program to
support the young lawyers of Queensland.
Proctor subscriptions brought revenue of around $22,120 for
the 2006/07 year.
Proctor Classifieds
Classified bookings have shown a steady increase from July
2006 through to June 2007 with total revenue of $67,321.21,
a 42 percent ($19,930.18) increase from the previous year of
$47,391.03 (July 2005 to June 2006).
www.qls.com.au
DEPARTMENTAL REPORTS
Marketing and communications
The number of pages allocated to classifieds has increased
from three pages in the July 2006 edition of Proctor to well
over four pages allocated in the June 2007 edition.
Through training the same person now completes all
administration, design and placement of the Proctor
classified ads.
This has improved the service to our members as specific
layout requirements and requests can be understood
and discussed with the member and immediately entered
directly into the ad that will appear in Proctor.
Newsletter of the Law
As part of the communications audit, the Newsletter of the
Law service – allowing subscribers to brand either a hard
copy or soft copy of the newsletter as their own – will no
longer be offered in hard copy from August 2007.
Other than the production and distribution cost savings, the
online-only offer is available to subscribers 24/7 and will
allow them to customise their newsletter to suit their needs
before distributing to clients.
Income from Newsletter of the Law subscriptions totalled
$33,440 (inc GST) for 2006/07.
Along with similar research
in all other community
support services, these
reports are not only
benefiting these professions,
they are also providing
the Government with
valuable information on the
level to which technology
is enabling businesses
and communities across
Queensland.
The final report – ‘Lawyers
e-Business Report’
– is available under ‘For the
Profession, then ‘Practice
Management & HR’, on the
QLS website.
John Teerds, Publications Editor and
Tina Gamvros, Business Development
Executive: Proctor advertising revenue
has increased by over 35 percent
and the size of the magazine has
increased by 25 percent.
To continually improve QLS
services to our members, in
the next financial year we will be focusing on establishing a
regular comprehensive annual or biennial member survey
that will track the changing needs of the legal profession in
Queensland.
QLS intranet launched May 2007
Member Research
In addition to our participation in the annual Business and
Professions Study, association benchmarking section, by
Beaton Research, we are using a cost-effective online
research tool that will allow us to quickly and simply survey
our members, targeted to the relevant segments, as
required.
All market research is now being centralised and
registered through Marketing and Communications for
leverage of the information across the Society and to
minimise the frequency of
communications with our
members.
To compare with the initial
research in 2004, QLS
again partnered with
the Department of State
Development, Information
Industries Bureau, for their
second tracking study
into the use of technology
in the legal profession in
Queensland.
After two years of initial development, Marketing and
Communications reignited the intranet project using
a project management framework, with the Intranet
being launched May 2007. Through ongoing upgraded
version releases, the Intranet will continue to improve
communications and information sharing between QLS staff,
which, in turn, is improving delivery of QLS services to our
members.
Schools and Community Education
Service (SCES)
The SCES program now has a dedicated staff member with
the appointment of our Community Relations Officer, Calista
Bruschi.
This program continues to assist legal educators, students,
community groups and the general public in gaining access
to simple, up-to-the-minute information about the law. There
is now a greater emphasis on community engagement
through the SCES program, which also includes the
business community.
Roz Cooper, Manager of Marketing
and Communications, drives this new
QLS department with the assistance of
Kaye Ahern, Marketing Administrator.
your society
queensland law society 2006/07 23
Departmental reports
Marketing and communications
The Verdict remains the only legal education magazine in
Queensland specifically targeted at secondary and tertiary
students, as well as community relations groups, and is an
extremely positive public relations vehicle for the law, the
Society and the legal profession.
Publication of this magazine has returned to in-house
production due to InDesign training, with the Community
Relations Officer responsible for its output. The involvement
of legal experts, allied professionals and community leaders
continues through their contributions of high-quality, relevant
articles for the publication.
Law Week 2006 short essay competition award presentation (from left): Bond
University Registrar Alan Finch, QLS SCES Aupervisor Rob Hoey, Winner Amy
Rowland, Bond University Faculty of Law Dean Professor Duncan Bentley and
QLS Manager, Professional Development Sharon Burke.
The subscription-based service provides a broad range of
legal resources, including The Verdict magazine, fact sheets,
speakers’ register, videos, CDs, and reference books, that
have been specifically targeted to provide easy-to-read,
jargon-free, ‘access to justice’ educational materials. The
program continues to receive substantial positive interagency and community comment with QLS now being
invited to participate on a number of external working parties
based on the strength of this service.
It is expected that the SCES portfolio will provide expanded
opportunities for positive promotion of the Queensland legal
profession.
Grants funding secured by the SCES program during the
2006/07 year totalled $77,000.
Major activities for 2006/07 include:
Law Week
Queensland Law Society was actively involved in this
year’s Law Week celebrations and participated in the highly
successful Brisbane Magistrates Court (BMC) Open Day on
Saturday 12 May 2007.
SCES Speaker Bureau
An update to this valuable service was undertaken to ensure
a more accurate list of speakers is available upon request.
The SCES Speaker Bureau is a comprehensive list of legal
professionals who are willing to present legal topics to
schools and community groups.
The topics requested are varied and include all areas of
law. This service is valuable for both the speaker – as it
provides the opportunity to develop their abilities as a legal
professional whilst educating others in the law – and the
school and community groups – by being able to interact
with someone who is ‘working in the field’ and, therefore,
considered an expert.
SCES Resource Library
An update of the resources available for loan has been
completed. The SCES Resource Library has a number of
training and education materials specific to the needs of
its subscribers. There are a broad range of legal resources,
including books and DVDs, which will be expanded through
the QLS negotiated partnership with Cambridge University
Press and Film Australia. The opportunity to expand this
service allows the SCES program to continue to provide up-to-date education. These partnerships mean that
expansion of the SCES library is being done at little or no
cost to Queensland Law Society and its members.
The focus of Law Week was to improve the understanding
of the justice system, the law in general and the work of a
range of government and non-government agencies within
the community. Highlights of the BMC Open Day included
the displays, seminars, tours and moot court trials.
QLS, through its SCES program, held its annual Law Week
Schools Poster Competition and introduced an inaugural
Trivia Night, attended by 70 legal professionals and hosted
by Martin Daubney SC.
The Verdict
The flagship magazine of the SCES program has undergone
significant change over the past 18 months. It is pitched with
a young, friendly and ‘newsy’ tone that has been very well
received by educators and inter-agency groups alike.
24 79th
annual report
During Law Week 2007, the night of 17 May was thoroughly enjoyed by many
practitioners who took part in the inaugural Succession Law Trivia Night at
Law Society House. The Public Trustee’s talented team (pictured with emcee
Martin Daubney SC and QLS Vice-President Megan Mahon) took first place,
followed by a team of barristers and academics, and the QLS team.
www.qls.com.au
Departmental reports
Marketing and communications
Business Development
– Advertising and Sponsorship
American Express
Credit Cards
(All of the below figures are excluding GST)
•360 Gold cards were
acquired in 2006/07
The capacity to develop advertising and sponsorship sales
through Marketing and Communications was improved
with the appointment of a new Business Development
Executive, Tina Gamvros. This expertise is also being
employed to generate increased sponsorship income for the
CLE section. Integrating advertising and sponsorship sales
across the two departments allows potential and new clients
more diversity in their marketing campaigns. Additional
revenue has also been sourced by opening up advertising
opportunities through a number of different channels.
Revenue has been generated in a number of new areas
for both the Marketing and Communications and CLE
departments including sponsorship of the July to December
2007 CLE Events Book ($8,100), regional CLE program
sponsorship ($4,200), The Verdict magazine ($375) and
the State Legal Educators and Young Lawyers conference
sponsorship ($2,800).
Advertising sales for the 2008 Diary were $73,118.11, a
32 percent increase over advertising sales for the 2007 Diary,
which were $55,465.00.
Proctor display advertising sales have increased by
approximately 33 percent ($80,000) over the previous year.
The total Proctor display advertising sales for 2006/07 were
$335,733.39.
Banner advertising opportunities in the QLS Update e-newsletter were more heavily promoted this financial year
which resulted in almost double the income over 2005/06,
with 2006/07 sales being $12,051.84.
Member Benefits
The performance of the Member Benefits program
continued to prosper in the 2006/07 year both from the
perspective of product and service improvements for our
members and the return to QLS, which is then re-invested
into service delivery improvements for our members.
Following are the achievements for this financial year.
Total Affinity Partners Revenue 2006/07
The total revenue for 2006/07 was $185,967.50.
•394 Platinum cards were
approved
• program penetration rate
was 27 percent (based
on 6,891 members)
Lady Mayoress Lisa Newman invited
Queensland law firms to get behind a
fundraising project to develop a centre
for young people within inner Brisbane,
during a lunch held at Law Society
House in October 2006. Pictured,
from left, are Brisbane Lions coach
Leigh Matthews, Lady Mayoress Lisa
Newman and QLS CEO Peter Carne.
• members are responding
well to the Member
Benefits program.
Only 49 members
have requested to be
removed from the member benefits contact list for Amex
communications
• card billings increased throughout 2006/07 by 32 percent
in comparison to 2005/06
• 2006/07 total card billings were $21,930,294
• the addition of the Platinum Credit Card in 2006 has been
the main contributor to the increase on overall billings,
averaging just under $2,300 in spend per cardmember
per month (Gold is sitting currently around $1,000 per
month in spend)
• in 2007/08, we are forecasting a growth in spend by
an additional 25 percent (target $27.4m); this growth is
planned to come from increased Platinum conversions,
increased engagement activity and potentially an
integrated membership subscription renewals campaign.
American Express Personal Loans
• the American Express Personal Loan launched to existing
cardmembers in May 2006 and to prospects in June
2006
• the average loan is $32,109 which is well above forecast
($25,000)
• QLS members have generated over $1.9m worth of loans
in the 2007 financial year
• the Society is currently working with American Express to
improve the approval process, ie pre-approval loans for
prospects.
In 2006/07, American Express made up the bulk of the
revenue stream (69 percent) due to consistent acquisition
year-on-year. AMP Home Loan commission provides an
extremely stable revenue source which is forecast to grow
by 20 to 30 percent over the next financial year.
Chief Justice Paul de Jersey delivers
the opening address of Symposium
2007.
your society
queensland law society 2006/07 25
DEPARTMENTAL REPORTS
Marketing and communications
•53.3 percent of applicants resulting from the campaign
took out Joint Life Insurance cover
• 2006/07 ING commission totalled $39,464.50.
AMP Home Loans
• 2006/07 settlements finalised at just over $7.8m
• since inception in 2004, the program has generated over
$18m in settlements
• QLS members are now able to apply for the QLS AMP
Home Loan through their broker or financial planner.
There are currently around 1,000 ‘active’ AMP mortgage
writers
Help put runs on the board for Foodbank: the Foodbank 2006 Queensland
Christmas Appeal was launched at Law Society House in November 2006
with the assistance of Queensland Bulls players Shane Jurgensen, left, and
Chris Simpson, right, and former Queensland cricketer and now partner with
Courtice Neilsen Lawyers, Andrew Courtice, centre.
ING
• Life and Living Benefit direct mail campaign launched on
12 March, with the second phase advertised on 4 April.
The campaign closed on 16 April 2007
• this campaign only achieved a 0.28 percent response
rate which is 0.12 percent below forecast. However, the
Total Annual Premium (TAP) figure is above what was
anticipated due to a $1m cover being added outside the
campaign period which made up some ground for the
lower response to the campaign
• AMP identified the need to make a Low Doc Home Loan
available to QLS members and launched this product
in June 2007. The ‘Affinity Low Doc Home Loan’ is an
adaptation of the standard home loan product with similar
interest rate discounts and fee waivers for members. This
type of home loan is most applicable to members who
are self-employed and have held an ABN for a minimum
of two years.
Hertz
• for 2006/07, 357 rentals were made by QLS members
• a new co-branded splash page, launched May 2007, was
developed to allow members to access exclusive offers
all year
• Hertz re-launched their website early in 2007, which made
booking rentals or obtaining quotes more simple for
members.
Roz Cooper
Manager, Marketing and Communications
The Amex QLS Touch Football
Challenge for 2006 saw 18 teams
compete on Sunday 17 September
2006. In a replay of the 2005 Inaugural
final, Jensen McConaghy squared
off against Legal Aid Queensland.
And in a repeat of that final, Legal
Aid Queensland (pictured top right)
proved to be the winners on the day,
taking the Amex QLS Touch Football
Challenge trophy for 2006.
26 79th
annual report
www.qls.com.au
Departmental reports
Finance and information technology
Finance
Lexon Insurance Pte Ltd
I am pleased to advise the Society’s consolidated profit
of $16.8 million, which includes the parent entity’s profit of
$569,000.
The consolidated results include the Society’s membership
activities, insurance activities (Lexon Insurance Pte Ltd and
Law Claims Levy Fund), and the regulatory responsibilities
imposed by legislation.
I encourage all members to review the financial statements
as they provide a detailed analysis of the Society’s results
and financial position. The current year results are for the
12 months to 30 June 2007, while the prior year includes the
14 months from 1 May 2005 to 30 June 2006.
The key financial highlights for the year include:
Parent entity,
Queensland Law Society Incorporated
An operating surplus of $569,000 was achieved. The key
movements from the prior year include:
• an increase in membership fees from $225 to $325 per year, bringing the fee into line with previous years
(excluding the 2005/06 year)
• the provision of management services (finance and
information technology) to Lexon
• membership services and events had another strong year
• growth in Proctor advertising, combined with expense
savings
A pre-tax profit of $16.0 million was achieved largely due to
stronger than expected investment returns of 16.7 percent
on the $80 million of funds under management (resulting
in investment income of $14.0 million). The majority of the
funds under management (over $50 million) are required
to meet the scheme’s claims exposure in future years. The
investment return, which is unlikely to be repeated long term,
nonetheless provides additional reserves for the scheme
which will assist in ensuring its long term viability and,
importantly, its capacity to deal with any future hardening in
the reinsurance market, for the benefit of all practitioners.
The result was also assisted by the release of reserves in
the 2003 underwriting year combined with movements
in discount rates (with the impact of reducing discounted
outstanding claims).
Lexon continually reviews the ongoing capital requirements
to ensure minimum solvency levels are maintained and
maximum long term benefits are returned to the profession.
Law Claims Levy Fund
An operating surplus of $5.2 million was achieved, via:
• strong investment returns
• write-back of prior year provisions (largely in relation to
claims-handling provisions).
The Audit Committee remained actively involved in reviewing
and implementing financial policy to ensure the Society
continued to be appropriately financially managed.
• cost savings achieved in the latter half of the year with
the postponement of projects (largely in information
technology and marketing).
Valerie Hitchcock, Finance and Payroll Officer
processes the pay for all QLS staff, among other
tasks.
your society
queensland law society 2006/07 27
Departmental reports
Finance and information technology
Information Technology
The past year saw a great deal of information technology
activity at the Society, both internally and externally. The
main projects for the benefit of members include:
• an upgrade to the web servers, providing improved
reliability and stability
• enhancements to the ‘My QLS’, or practitioner profile,
section. This allows a member to update their personal
details online, which saves time and resources.
I recommend all members review their details regularly to
ensure currency of information
• enhancements to the online renewal process (including
practitioners, firms and professional indemnity insurance)
°36 percent of firms successfully completed the online
insurance questionnaire
° there were a few issues encountered with the new
processes and QLS has taken onboard some
very useful member feedback, which will result in
improvements to next year’s renewal process
° the Society’s core database server was recently
upgraded, which resulted in significantly improved
performance when members updated their online
information.
In the coming year, QLS plans to make further
enhancements to the renewal and ‘My QLS’ sections,
add a firm profile, and, in conjunction with the Marketing
and Communications
department, update the look
and feel of the web.
Anthony Walduck
Director, Finance and
Information Technology
° 696 practitioners successfully renewed online, which
represented approximately a 500 percent increase
over the prior year (the Society wants to see this figure
continue to grow as it yields greater efficiency and
higher accuracy, than the manual process)
Jonathon Abbott, Software Developer
and Adam Cliffe, Helpdesk Officer,
provide valuable information
technology support and advice to all
QLS staff.
DEPARTMENTAL REPORTS
Human resources
The focus for the Human Resources department this
year has been in supporting the Chief Executive Officer
to strengthen the commercial acumen of QLS in order
to continue building a financially stable membership
association for the practitioners of Queensland.
We have introduced best practice programs for recruitment,
selection and job design that will assist QLS to attract
and retain the ‘right staff’ in the ‘right jobs’ with the skills,
attitudes and experience to contribute their best to the
Society. We have recruited a number of new high performing
staff in the areas of marketing, ethics, legal and policy, and
continuing legal education, who have brought new skills and
experience to their teams.
Over the next year, I plan to engage members through the
provision of information and new human resources initiatives
that will assist legal practices in addressing their human
capital requirements.
As our working environment continues to change it is
evident that the currency of human resources programs
and practices that focus on solutions in retention, flexible
working practices, corporate health, leadership and ongoing
engagement of the workforce, will continue to be at the
forefront of employer consciousness.
Patricia Linn
Manager, Human Resources
My focus for QLS is now directed at building culture and
vitality by way of strengthening organisational health,
supportive leadership and innovative performance
management systems.
Susanne Plowman, Human Resources
Officer: In conjunction with the Human
Resources Manager, Susanne looks
after all ninety QLS staff!
28 79th
annual report
www.qls.com.au
Departmental reports
Professional standards
This report covers the twelve (12) month period from 1 July
2006 to 30 June 2007. The report in last year’s annual
report covered the fourteen (14) month period from 1 May
2005 to 30 June 2006 due to the Society’s decision in 2005 to change the Society’s reporting period to a twelve (12)
month period ending on 30 June. The reporting period was
previously a twelve (12) month period ending on 30 April.
The department, managed by David Franklin, consists of
four operational branches:
• Complaint Investigations
Complaint investigations
Since 1 July 2004 when the Legal Services Commissioner
(‘the Commissioner’) became responsible for the receipt
and investigation of complaints about practitioners and law
practice employees, the branch’s role has been to:
• investigate complaints allocated to the branch for
investigation by the Commissioner
• prepare reports to the Commissioner with respect to
investigations
• make recommendations as to whether complaints should
be dismissed, or result in disciplinary action, and
• Client Relations Centre
• Audit branch
• Fidelity Fund/External Intervention.
The Professional Standards Committee, a Committee of
the Council of the Queensland Law Society, oversees the
operations of Complaint Investigations, Audit and the Client
Relations Centre. The Committee, which met monthly, was
chaired by former Council member Michael Meadows. The
other members of the Committee were:
• prepare draft disciplinary applications and compile briefs
of evidence in support thereof for those matters that are
the subject of a recommendation to take disciplinary
action.
• Council member Brian Kilmartin, until 14 December 2006,
when he resigned from the Committee
Complaint Investigations was managed by Craig Smiley,
who was assisted by four investigators. The number of
investigators in the branch was reduced from eight point
six (8.6) full-time investigators to four on 30 June 2006 after
the Society achieved the target set by the Commissioner
of finalising, before 30 June 2006, the investigation of all
complaints made to the Society before 1 July 2004 when
the Commissioner became responsible for the receipt and
investigation of complaints.
• Council members Ian Berry and Raoul Giudes, for the
entire reporting period
At the beginning of the period, the branch was investigating
162 complaints.
• Council member Lynette Galvin, from 21 September 2006
During the twelve (12) month period, the Commissioner
assigned 372 new complaints and reassigned a further 11
complaints to the branch to investigate. This represents an
average assignment of 32 complaints per month compared
to an average assignment of 27 per month in the previous
reporting period.
• past President Glenn Ferguson, until 14 December 2006,
when he resigned from the Committee
• lay members Bill East and Ken Hinds, for the entire
reporting period.
The Committee of Management, another Committee of
the Council of the Queensland Law Society, manages the
Fidelity Guarantee Fund and considers claims made against
the Fund by clients who claim to have suffered financial
loss as a result of a dishonest default by an associate
of a law practice. This Committee, which met bimonthly
during the reporting period, was chaired by the Society’s
Vice-President, Megan Mahon. The other members of the
Committee were Council members Don Armit and Peter
Eardley, and former Council member Ian Hughes.
Accordingly, the branch was responsible for investigating
534 complaints during the period. The investigations of 359
of these complaints were finalised during the period with the
result that the number of complaints being investigated by
the branch as at 30 June 2007 was 186, an increase of 24 (15 percent) for the period.
The Legal Services Commission’s
Helen Johnson certifies ‘file closed’
with the aid of Attorney-General
Linda Lavarch and Legal Services
Commissioner John Briton.
your society
queensland law society 2006/07 29
Departmental reports
Professional standards
The Council of the Society delegated to the Director,
Professional Standards, and the Manager, Complaint
Investigations, the power to recommend to the
Commissioner that a complaint be dismissed, pursuant
to s274(1)(a) of the Legal Profession Act 2004 if it is, in
their assessment, that there is no reasonable likelihood
of a disciplinary body making a finding of professional
misconduct, or unsatisfactory professional conduct.
Of the 359 complaint investigations finalised during
the period, 87 percent (311) were the subject of a
recommendation by the Director or the Manager that the
complaint be dismissed pursuant to s274(1)(a). This is a
slight increase from 82 percent in the previous period.
The remaining 48 complaints were referred to the
Professional Standards Committee and were dealt with by
the Committee as follows:
number
percentage
2006/07 (%)
percentage
2005/06 (%)
Disciplinary action be
taken against the relevant
practitioner, or practitioners
21
44
44
Complaint be dismissed
pursuant to s274(1)(b)
in circumstances where
it was considered there
was a reasonable
likelihood of a finding of
professional misconduct, or
unsatisfactory professional
conduct, but it was in the
public interest to dismiss
the complaint
15
31
35
Complaint be dismissed
pursuant to s274(1)(a) as
it was considered that
there was no reasonable
likelihood of a finding of
professional misconduct, or
unsatisfactory professional
conduct
11
Complaint investigation
be placed in abeyance, or
made no recommendation
1
2
2
Total
48
100
100
Recommendation to the
Commissioner
23
19
Most of the Society’s recommendations were adopted by
the Commissioner. During the reporting period, there were:
• two instances (less than one percent) when the
Commissioner decided to take disciplinary action
after the Society recommended that the complaint be
dismissed
• one instance (less than one percent) when the
Commissioner decided to dismiss a complaint after the
Society recommended that disciplinary action be taken.
The Complaint Investigations branch has continued to
enjoy an extremely good working relationship with the
Commissioner and his staff. There are ongoing discussions
between the Society and the Commission to further
strengthen the relationship by amalgamating the regulatory
databases kept by the Society and the Commission so
that both entities have full access to all relevant regulatory
information. This will enable both entities to more effectively
and efficiently discharge their functions under the Act.
Client Relations Centre
The Client Relations Centre (‘the Centre’), managed by Kerry
Kelly, was staffed by two full-time Client Relations Officers,
one part-time Client Relations Officer and one Administrative
Assistant.
Since the Legal Services Commissioner became
responsible for the receipt and investigation of complaints,
the Centre’s main function has been to act as an early
intervention unit by taking telephone calls from members of
the public with concerns about the manner in which legal
services have been provided to them by law practices.
The Centre takes a proactive approach to negotiate
outcomes satisfactory to members of the public and the
relevant law practices. This is usually achieved by making a
series of telephone calls to the enquirer and the law practice.
On occasions, the Centre facilitates a mediation process.
The Centre also receives telephone calls and written
communications, on a confidential basis, from solicitors and
other law practice employees seeking ethical advice.
Tom Creed, Client Relations and
Ethics Guidance Officer, Call Centre
(Professional Standards): The Client
Relations Centre handled 2563
ethics inquiries from practitioners for
2006/2007.
30 79th
annual report
www.qls.com.au
Departmental reports
Professional standards
During the period, the Centre received 6,892 public and
solicitor enquiries (an average of almost 575 each month,
compared to an average of almost 600 each month in the
previous period). Approximately 37 percent of these matters
(2,583) were ethical enquiries from solicitors and other law
practice employees (compared to approximately 20 percent
in the previous period). The other 63 percent (4,309)
represented enquiries made by members of the public
(compared to approximately 80 percent in the previous
period).
The Centre finalised 4,374 enquiries from members of the
public during the period. The vast majority were satisfactorily
resolved by the Centre. A summary of the outcomes of the
4,374 public enquiry matters finalised by the Centre during
the year is set out hereunder:
A summary of the nature of matter of the public enquiries is
set out hereunder:
total
percentage
2006/07 (%)
percentage
2005/06 (%)
1,235
28
39
Costs
920
13
9
Competence, diligence,
negligence and delay
843
21
15
Nature of matter
Advice about ethics or how
to make a complaint or
about the legal system
Request for legal advice
214
5
2
Unknown
170
4
5
Lack of communication
153
4
3
Failure to transfer
documents
139
3
2
Trust account related
matters
125
3
2
108
2
6
Outcome
total
percentage
2006/07 (%)
percentage
2005/06 (%)
Provided information/advice
about the legal system
889
20
46
General enquiry
2
2
789
18
13
Misleading/ dishonest conduct
85
Enquirer satisfied
Provided referral for legal
advice or other assistance
714
16
11
Conflict of interest
73
2
2
Other
309
7
10
Referred to Legal Services
Commission
655
15
7
4,374
100
100
Recommended direct
approach to law practice
about concerns
600
14
10
Lost contact with
complainant
249
6
6
Listened to caller’s
concerns
190
4
3
Other
288
7
4
4,374
100
100
Total
Total
The figures in the above table reflect a significant reduction
in requests for advice about ethics and the legal system
generally and an increase in each of the other major matter
types.
The above table shows that there was a marked decrease
in the percentage of complaints that were finalised by
providing information/advice about the legal system (from
46 percent to 20 percent) and there was a significant
increase in the percentages in the other major categories,
including the number of enquiries that were satisfied (from
13 percent to 18 percent) and the number that were referred
to the Legal Services Commission (from seven percent to
15 percent).
Of those referred to the Commission, 512 (78 percent) were
dismissed by the Commission as consumer disputes and
only 143 (three percent of the total number of enquiries
finalised by the Centre) resulted in the Commission
commencing an investigation.
Jane Oliver, Senior Client Adviser,
Client Relations Centre (Professional
Standards): Out of 4309 enquiries to
the Client Relations Centre in 2006/07,
only 3.32 percent were escalated
as official complaints to the Legal
Services Commission.
your society
queensland law society 2006/07 31
Departmental reports
Professional standards
A summary of the area of law of the public enquiries is set
out below:
Area of Law
total
percentage
2006/07 (%)
percentage
2005/06 (%)
Conveyancing and property law
1104
25
19
Family law
747
17
13
Unknown
688
16
13
Personal injury
475
11
9
Deceased estates
384
9
7
Commercial/company law
221
5
2
Litigation
220
5
5
Criminal law
147
3
3
Administrative law
81
2
1
Other
307
7
28
3,056
71
64
Total
The figures in this table indicate a percentage increase in
all of the above areas of law except litigation. This is due to
the fact that the Client Relations Officers exercised more
care in the current reporting period to record the relevant
area of law. This resulted in the percentage that did not
record the relevant area of law reducing from 41 percent in
the preceding period to 23 percent in the current reporting
period.
Over and above the public and solicitor enquiries, the
Centre also dealt with three consumer disputes referred to
the Centre, by the Commissioner.
A consumer dispute is a dispute between a person and
a law practice that the Commissioner considers does not
involve an issue of unsatisfactory professional conduct, or
professional misconduct. The Commissioner referred two
consumer disputes to the Centre during the year – one was
withdrawn and the other was still being dealt with by the
Centre at the end of the year.
In addition, the Centre finalised a consumer dispute that was
referred to the Centre by the Commissioner in the previous
year. This dispute was resolved to the satisfaction of both
the consumer and the solicitor.
Audit branch
The four primary roles of the Audit branch (managed by Bill
Hourigan) are:
• to provide assistance to law practices and law practice
auditors to ensure that law practices maintain their
trust accounting records in accordance with legislative
requirements and in accordance with good accounting
practices
• to detect fraud, or improper handling, of trust money
• to analyse Audit Reports lodged with the Society by law
practice appointed trust account auditors
• provide assistance to the Fidelity Fund/External
Intervention section, as required.
During the reporting period, the number of accountants
employed by the Society to discharge the branch’s functions
decreased from four to three. The number of clerks and
administrative assistants reduced from three to two as the
result of the administrative assistant position being filled by
one full-time employee, rather than two part-time employees.
Section 31 examinations
The branch finalised 287 examinations during the year (an
average of 24 per month) compared to 327 examinations
finalised in the previous fourteen month period (an average
of 23 per month). The examinations were conducted
pursuant to the provisions of s31 of the Queensland Law
Society Act 1952.
A report is prepared with respect to each examination and
is sent to the relevant law practice with a request that the
law practice provide its comments on the matters reported
and advise what steps have been taken, or will be taken, to
address the matters of concern.
The reports and the law practice’s comments are
considered by the Manager of Audit and the Director of
the department. If they consider that the matters disclosed
by the examination have been satisfactorily addressed
by the law practice and are not serious, they finalise the
examination and advise the law practice to this effect. If they
consider that the law practice has not taken appropriate
action, or that the matters disclosed are of concern, the
report and subsequent correspondence with respect to
the examination are referred to the Professional Standards
Committee for determination as to what further action
should be taken.
Cathie Elger, Administration Assistant,
Audit (Professional Standards).
32 79th
annual report
www.qls.com.au
DEPARTMENTAL REPORTS
Professional standards
The table below summarises the outcomes of the
examinations finalised during the period:
Result
Finalised without any further action being
taken
Professional Standards Committee resolved
to:
number
percentage
(%)
214
75
1
0
• conduct a follow-up examination of the law
practice
• request the law practice to pay for the cost
of the follow-up examination
• request the principal of the law practice to
complete the trust accounting component
of the Practice Management Course
• refer the law practice’s outlay billing
practices to the Legal Services
Commissioner in accordance with his
specific request that such matters be
referred to him
• recommend to the Legal Services
Commissioner that disciplinary action
be taken against the principal of the law
practice
Professional Standards Committee resolved
to:
Professional Standards Committee resolved
to refer the law practice’s outlay billing
practices to the Legal Services Commissioner
in accordance with his specific request that
such matters be referred to him
4
2
Professional Standards Committee resolved
to:
3
1
3
1
1
0
12
4
Professional Standards Committee resolved
to conduct a follow-up examination of the law
practice
12
4
Professional Standards Committee resolved
to recommend to the Legal Services
Commissioner that disciplinary action be
taken against the principal of the law practice
2
1
287
100
• conduct a follow-up examination of the law
practice
• refer the law practice’s outlay billing
practices to the Legal Services
Commissioner in accordance with his
specific request that such matters be
referred to him
Professional Standards Committee resolved
to:
1
0
• conduct a follow-up examination of the law
practice
• request the law practice to pay for the cost
of the follow-up examination
Professional Standards Committee resolved
to:
• conduct a follow-up examination of the law
practice
• request the law practice to engage a
management consultant to help improve
practices and procedures
2
0
• conduct a follow-up examination of the law
practice
• request the law practice to pay for the cost
of the follow-up examination
• refer the law practice’s outlay billing
practices to the Legal Services
Commissioner in accordance with his
specific request that such matters be
referred to him
Professional Standards Committee resolved
to:
5
• conduct a follow-up examination of the law
practice
• request the law practice to pay for the cost
of the follow-up examination
• request the principal of the law practice to
attend a trust accounting seminar
• conduct a follow-up examination of the law
practice
• request the law practice to pay for the cost
of the follow-up examination
• request the principal of the law practice to
attend a trust accounting seminar
• refer the law practice’s outlay billing
practices to the Legal Services
Commissioner in accordance with his
specific request that such matters be
referred to him
Professional Standards Committee resolved
to:
13
Professional Standards Committee resolved
to:
19
7
• conduct a follow-up examination of the law
practice
• request a principal of the law practice to
attend a trust accounting seminar
• refer the law practice’s outlay billing
practices to the Legal Services
Commissioner in accordance with his
specific request that such matters be
referred to him
Professional Standards Committee resolved
to:
• conduct a follow-up examination of the law
practice
• request the principal of the law practice to
attend a trust accounting seminar
Total
In all, the Professional Standards Committee resolved that
follow-up examinations be conducted with respect to 67
(23 percent) of the law practices that were examined and
that the outlay billing practices of 40 (14 percent) of the
examined law practices be referred to the Legal Services
Commissioner. The outlay billing practices of concern saw
law practices overstating the amount expended on outlays.
Symposium 2007’s Friday night drinks
and gala dinner (photo courtesy of
Toshiba).
your society
queensland law society 2006/07 33
Departmental reports
Professional standards
In addition, pursuant to the Society’s obligation under
s583 of the Legal Profession Act 2004, to report suspected
offences:
• three examinations resulted in reports being made to
the Office of State Revenue with respect to suspected
offences against s480(2) of the Duties Act 2001
(endorsement of a dutiable instrument by a self assessor
prior to the receipt, by the self assessor, of the duty)
• one examination resulted in a report being made to
AUSTRAC of a suspected offence against s15A of the
Financial Transaction Reports Act 1988 in that the law
practice had an obligation to lodge a significant cash
transaction report with AUSTRAC but failed to do so.
Audit reports
The branch is responsible for ensuring that law practices
lodge an Audit Report by their appointed auditor. Upon
receipt, these reports are analysed by the Society to
determine whether any action should be taken with respect
to matters disclosed in the reports. The reports relate to the
twelve (12) month period ending 31 March and are required
to be lodged with the Society by 31 May.
At the time of preparing this report (26 July 2007), the
Society had received 1,232 Audit Reports for the year ended
31 March 2007 and was taking follow-up action in relation to
149 law practices that had not, at this time, lodged their Audit
Reports.
Action taken by the branch following the analysis of these
reports includes:
• corresponding with the relevant auditor to clarify matters
reported
• corresponding with the relevant law practice to ensure
that appropriate action is taken by the practice about
matters reported
New legislative regime
During the period, the Audit branch completed a very
comprehensive Trust Accounting Guide to assist law
practices to comply with their legislative requirements
pursuant to the provisions of the Legal Profession Act
2007 and the Legal Profession Regulation 2007 (‘the new
legislative regime’).
The new legislative regime replaced the Trust Accounts Act
1973 and the Trust Accounts Regulation 1999 and made a
number of significant changes to the way that trust accounts
are to be operated and the way that law practices are to
keep their trust accounting records.
The branch finalised the Trust Accounting Guide before the
legislation came into effect and it has been available on the
Society’s website since 2 July 2007.
Electronic funds transfers
For some time, law practices in other jurisdictions have
been permitted to pay money from their trust accounts by
electronic funds transfers. The Council determined during
the year that a paper be prepared by the Business Law
Section to identify the benefits and risks associated with
electronic funds transfers.
Council determined, after considering the Business Law
Section’s paper, to give in principle, approval to the payment
of money from law practice trust accounts by electronic
funds transfers. It was then the task of the Audit branch, in
conjunction with the Business Law Section and the Society’s
Legal and Policy department to draft the EFT Guidelines for
Trust Account Operations to be observed by law practices
that receive approval from the Society to make payments
from their trust account by means of electronic funds
transfers.
The Guidelines were approved by the Council of the Society
on 21 June 2007 and are available on the Society’s website.
• the Society conducting its own examination of the law
practice.
During the year, the Society made only one
recommendation to the Legal Services Commissioner that
disciplinary action be taken against a practitioner for the
late lodgement of an Audit Report. This compares very
favourably with the seven (7) such recommendations made
by the Society in the previous reporting period.
Fidelity fund/external interventions
This branch, which was managed by Glenn Forster,
discharges the following functions:
• receipt and investigation of claims for reimbursement
from the Fidelity Guarantee Fund (‘the Fund’) of
pecuniary losses alleged to have been suffered as the
result of a dishonest default by an associate of a law
practice
Symposium 2007’s Friday night drinks
and gala dinner (photo courtesy of
Toshiba).
34 79th
annual report
www.qls.com.au
DEPARTMENTAL REPORTS
Professional standards
• controlling solicitors’ trust accounts when officers of the
Society have been appointed as Supervisor
• administering the winding up of law practices when
officers of the Society have been appointed Receiver.
Mr Forster was assisted by a solicitor and three
administrative assistants who all worked on a part-time
basis. He was also assisted, from time to time, as required,
by the staff of the Audit branch and the Complaints
Investigations branch.
Fidelity fund
A report is prepared with respect to each claim made
against the Fund. These reports are considered by
the Committee of Management. It is the Committee of
Management that decides whether a claim should be
admitted for payment from the Fund.
During the period under review, the Committee considered
22 claims and admitted 20 for payments totalling
$412,487.26. In addition, provision has made for the
payment of claims totalling almost $1.1 million with respect
to claims made against the Fund but not yet dealt with and
claims expected to be made against the Fund.
In another very good year for the Fund, the balance of the
Fund, after providing for payment of all known expected
claim payments, increased by $750,000.00 during the year
from $2.49 million to $3.24 million. The actual cash balance
of the Fund as at 30 June 2007, after receiving practitioner
contributions for the 2007/08 financial year, was a little more
than seven million dollars.
External interventions
Pursuant to s319 of the Legal Profession Act 2004, the
Council of the Society could appoint an external intervener
to a law practice if one or more of the circumstances
prescribed by s318 of the Act was satisfied.
The Act provided for three different types of external
interventions:
During the year, the Council appointed officers of the
Society as the Supervisor of trust money received by five law
practices.
Mr Forster, the part-time solicitor in the branch and the
accountants employed in the Audit branch were appointed
as joint Supervisors with respect to these five practices.
As Supervisor, they have the powers and duties of the
practice in relation to trust money, including the power to
receive trust money on behalf of the practice, the power to
open and close trust accounts and the power to disburse
money from the trust accounts.
In addition, the Council appointed these officers as the
Receiver for one of these practices and as Receiver for a
further two practices during the year. It is the role of the
Receiver to take possession of regulated property (trust
money, other trust property, client files and Safe Custody
documents) and return that property to the persons entitled
thereto, or in accordance with their directions.
The period immediately after a Receivership appointment is
an extremely busy period, requiring urgent communication
with clients to advise them of the appointment of the
Receiver and the need for them to appoint a new solicitor to
represent them.
Whilst most of the work associated with these appointments
was handled by Mr Forster and the part-time solicitor in the
Receivership/External Intervention branch, they received
a substantial amount of assistance from the staff of the
Audit branch and some assistance from the staff of the
Complaints Investigations branch.
The period since 1 February 2007 has been particularly
frenetic – there have been three Supervisor and three
Receivership appointments in this period. The Receivership
appointments have resulted in the Receivers taking
possession of more than 1,500 cartons of closed client files
which will be held by the Receivers for a period of at least
seven years from the completion of the relevant matters.
• the appointment of a Manager for a law practice
In summary, it has been an extremely busy, challenging and
rewarding year for the Professional Standards department.
All staff of the department remain committed to effectively
discharging their duties in a fair and impartial manner.
• the appointment of a Receiver for a law practice.
David Franklin
Director, Professional Standards
• the appointment of a Supervisor of trust money received
by a law practice
More than 100 delegates attended
the Central Queensland Law
Association annual conference,
at Rydges Capricorn Resort from
25 to 27 August 2006.
your society
queensland law society 2006/07 35
departmental reports
Legal and policy
The department is responsible for:
• providing in-house legal advice to the Society and its
officers
• developing submissions to government on law reform
• developing discussion papers for the Society on
contemporary legal issues
• processing applications under the Freedom of Information
Act 1992 and compliance with the Information Privacy
Principles under Queensland Government Information
Standard 42
• developing the Society’s ethics agenda
• managing the Dispute Management Centre, which
includes the activities of the Society as an Authorised
Nominating Authority under the Building and Construction
Industry Payments Act 2004, and
• developing benefits for legal practices in the area of
risk and practice management through the proposed
Professional Standards Council application and other
projects.
During the course of the 2006/07 reporting year, the Legal
and Policy department was staffed by:
• Malcolm Hinton, General Counsel
• Matthew Dunn, Principal Policy Officer
• Sarah Moore, Solicitor
• Antony Beadle, Policy Officer (resigned January 2007)
• Amanda Donnelly, Policy Officer
A major part of the work of the General Counsel’s area
during the year related to the continuing process of
regulatory reform of the legal profession in Queensland.
The General Counsel’s area received and provided advice
in relation to drafts of the Legal Profession Bill 2007, which
replaced the Legal Profession Act 2004 and Queensland
Law Society Act 1952, and amended the Trust Accounts Act
1973.
The Legal Profession Act 2007 was assented to on 28 May
2007 and will commence on 1 July 2007.
The office of General Counsel (Malcolm Hinton and Sarah
Moore) has also had primary carriage of the following
matters:
• developing the Society’s Strategic Plan 2006-2010
(adopted by Council)
• developing the Legal Profession (Solicitors) Rule 2007
• re-drafting the Society Rule (which was repealed when
the Legal Profession Act 2004 was repealed on 30 June
2007)
• re-drafting the Indemnity Rule to give effect to the 2007/08
insurance levy calculation model
• drafting amendments to the Society Rule and the
Administration Rule to give effect to new initiatives such
as:
° facilitating the undertaking of ‘supervised legal practice’
by solicitors employed in government departments,
corporate environments and community legal centres
• Denise Nicol, Manager, Dispute Management Centre
(resigned June 2007)
° increasing the size of Council (from five ordinary
members to eight ordinary members) and aligning
the Society’s processes concerning the reception of
accounts, annual report and financial statements at the
AGM with the Society’s obligations under the Financial
Administration and Audit Act 1977
• Grace van Baarle, Manager, Dispute Management Centre
° introducing a volunteer practising certificate
• Felicity Culnane, Administration Officer, Dispute
Management Centre
° streamlining the provisions concerning the method and
time of service of documents
• Giles Watson, Legal Practice Consultant
• Neil Watt, Ethics Officer
• Denise St John, Senior Administrative Assistant
Symposium 2007’s Friday night drinks
and gala dinner (photo courtesy of
Toshiba).
36 79th
annual report
www.qls.com.au
Departmental reports
Legal and policy
• drafting the ILP and MDP information kits (version 1 was
uploaded to the QLS website when the Legal Profession
Bill was introduced to Parliament, and version 5 is now
online)
LCA working groups
General Counsel is also on the following Law Council of
Australia (LCA) Working Groups:
• drafting the Appropriate Management Systems course
material (which relates to ILPs and MDPs)
• National Model Laws Project Working Group
– concerning the implementation of the Legal Profession
National Model Laws Project
• drafting the approved forms under the Legal Profession
Act 2004, including those for ILPs, MDPs and Australianregistered foreign lawyers
• Model Conduct Rules Working Group – concerning a
review of the LCA National Model Rules of Professional
Conduct and Practice 2002
• advising the QLS Secretary regarding Australianregistered foreign lawyers
• Financial Services Regulation (FSR) Working Group
which deals with a number of FSR issues which
impact upon the constituent bodies (eg submissions
to Commonwealth Treasury on its Discussion Paper on
the Review of Regulation of Discretionary Mutual Funds
and Direct Offshore Foreign Insurers and applying for
permanent relief from ASIC from the application of the
FSR provisions of the Corporations Act 2001 to both the
Society and Lexon Insurance Pte Ltd).
• managing the establishment of the Senior Solicitors Panel
under the Indemnity Rule
• facilitating the introduction of a system to allow for the
grant or renewal of a practising certificate to ‘in-house’
solicitors and government legal officers who intend to
undertake pro bono work for a community legal centre in
addition to their ‘in-house’ legal work or government work
• delivering a number of ethics presentations (with the
Legal Services Commissioner) to members of the
profession
• processing six FOI applications (five of which have been
finalised) and two external reviews by the Office of the
Information Commissioner (OIC) (in respect of which
the OIC agreed with the Society’s submissions and only
ordered the release of those documents with respect to
which the third-party had recently waived its rights)
• publishing a number of articles in Proctor including:
° ‘Update: ILPs and MDPs’, Proctor, November 2006
° ‘Disclosure of solicitor’s representation letters’, Proctor,
November 2006
° ‘Supervised legal practice’, Proctor, December 2006
° ‘Issues for in-house solicitors’ (a series of three articles
published in three parts), Proctor, February, March and
April 2007.
Policy area
Submissions
Legal and Policy Officers were instrumental in Society
advocacy to Government during the July 2006 to June 2007
period. The Legal and Policy department has dedicated
resources committed to policy and advocacy to government.
Officers support the Society’s Sections and Committees
by providing secretariat services, assistance in running
meetings and drafting submissions.
The Society produced one hundred policy submissions
advocating members’ views to Government at all levels.
Highlights of the submissions in which Legal and Policy
Officers were instrumental in drafting include:
• to the Commissioner of Fair Trading concerning review of
the Associations Incorporation Act 1981
• to the Chief Magistrate concerning alternate sentencing
options for Magistrates in remote and regional areas with
respect to indigenous young people
Members of QLS Legal and Policy
department: Amanda Donnelly, Policy
Officer and Matthew Dunn, Principal
Policy Officer.
your society
queensland law society 2006/07 37
Departmental reports
Legal and policy
• to the Minister for Communities, Disability Services and
Seniors concerning the over-representation of indigenous
young people in detention
• to the Senate Legal and Constitutional Committee
concerning the Crimes Amendment (Bail and Sentencing)
Bill 2006 inquiry
• to the Risk Assessment Consultancy for the National
Electronic Conveyancing System (NECS) conducted by
Clayton Utz concerning their initial stakeholder package
• to the Chief Magistrate concerning precedence of
practitioners in arrest court matters
• to the Motor Accident Insurance Commission concerning
revised draft guidelines for arranging medico-legal
assessments
• to the Commissioner for State Revenue concerning
practitioner concerns with in-house stamping of
documents and counter-stamping
• to the Risk Assessment Consultancy for NECS conducted
by Clayton Utz concerning their second stakeholder
package
• to the Registrar of Titles concerning comments on the
new Form 24 design
• to the department of Natural Resources and Water
concerning timeliness of lodgement and quality of data of
Form 24s
• to the Premier concerning amendments to Anti-Terrorism
laws
• to the Chief Magistrate concerning separation of Police
Stations and Court facilities in indigenous communities
• to the Attorney-General concerning proposed
amendments to the Evidence Act to abolish the original
document rule
• to the Attorney-General concerning proposed
amendments to the Jury Act 1995
• to the Attorney-General concerning issues related to the
selection of jurors and directions to juries in Queensland
• two submissions to the Kennedy Inquiry regarding
aspects of WorkCover
• to the Commissioner of State Revenue concerning
certifying original documents in First Home Owner’s
Grant (FHOG) applications
• to Mr Tim Bugg, President of the Law Council of Australia,
concerning the International Court of Justice decision
regarding Serbia and the Convention on Genocide
• to the Department of Justice concerning draft guidelines
for use of PINs under the Integrated Planning Act 1997
• to the Service Delivery and Performance Commission
concerning development of legislation
• to the Attorney-General concerning review of the Criminal
Proceeds Confiscation Act 2002
• to the Attorney-General concerning practitioner access to
the Queensland Sentencing Information Service
• to the Attorney-General concerning the Criminal Code
(Double Jeopardy) Bill 2007
• to the Federal Minister of Human Services concerning the
proposed Access Card
• to the Minister for Child Safety concerning proposed
permanent parenting orders
• to the REIQ concerning updated versions of the Houses
and Land and Residential Lots in a Community Titles
Scheme (CTS)
• to the Attorney-General concerning private members Bills
Criminal Code (Organised Criminal Groups) Amendment
Bill 2007 and the Bail and Penalties and Sentences
Amendment Bill 2007
• to the Crime and Misconduct Commission (CMC) Inquiry
into Policing in Indigenous Communities
• to the Minister for Police and Corrective Services
concerning the inclusion of appropriate numbers of
interview rooms in the Arthur Gorrie Correctional Centre
expansion.
• to the Commonwealth Bank of Australia, Westpac, the
Bank of Queensland, Suncorp Metway Bank, National
Australia Bank and St George Bank concerning problems
with mortgage discharges
Symposium 2007’s Friday night drinks
and gala dinner (photo courtesy of
Toshiba).
38 79th
annual report
www.qls.com.au
Departmental reports
Legal and policy
During the year, officers conducted a review of available
records of policy submissions made by the Queensland
Law Society over the preceding nine years.
• hosting a State Revenue Office ‘Duties Online’ Project
Briefing with the Business Law Section
• attendances at Land Information Titles Consultative
Consumer Committee (LITCCC) on behalf of QLS with
senior officers of the Department of Natural Resources
and Water
• presenting at Law Weeks 2006 and 2007 at the new
Magistrates Court Complex
• conducting various email polls of members through
QLS Update – most notably with regard to member
difficulty with financial institutions mortgage release
practices which was reported to the Society’s Property
and Development Law Section and advocacy was
then made on the members’ behalf to relevant financial
institutions
• attendance at Motor Accident Insurance Commission
Actuarial Briefing and advocacy of the Society’s position
directly to the Commission Board at a closed lunch
session
The graph below indicates that 2006/07 was a significantly
improved year for Society advocacy and representation
of members in the law reform arena with a fifty percent
increase in the number of submissions from average levels
over that period.
The improvement in the Society’s volume of advocacy
during this period is most probably reflective of the decision
in the 2005/06 year to commit extra resources to this
area and renew the focus on the Society’s representative
functions.
special projects
• attendances on the Kennedy Inquiry into aspects of
WorkCover and drafting of submissions to the Inquiry
• attendance with the chair of the International Law/
Relations Section at the Department of Foreign Affairs
and Trade to provide member feedback to negotiating
officers of the China and Japan Free Trade Agreements
• attendance at the Guardianship and Administration
Tribunal Working party on the protection of elderly people
from financial abuse
• attendance at the Brisbane Magistrates Court focus
group for court services and facilities usability
During the June 2006 to July 2007 period, officers
participated in numerous events, contributed to several
special projects and prepared a number of ad hoc papers
for Council. Highlights of this work include:
• attendance at the Corrective Services Stakeholders
Meeting.
• development of a Judicial Appointments Discussion
Paper for Council
Legal and Policy department officers prepared a number
of articles and notices for the Society’s publications during
the 2006/07 year. Most notably, officers drafted ten QLS
Advocacy Reports for the September to July editions of
Proctor as well as preparing notices relating to the Council
Election 2007, a Call for expressions of interest to join QLS
Sections and Committees in November 2006 and other ad
hoc informative articles during the course of the year.
• in collaboration with the Business Law Section,
development of a significant and detailed Electronic
Funds Transfer from Solicitors Trust Accounts Discussion
Paper for Council, which led to Council permitting the use
of EFTs from solicitors trust accounts in Queensland
• attending five National Electronic Conveyancing
Consultancy Workshops, conducting a major profession
mail-out concerning NECS, preparing responses to three
calls for technical comments from the NECS National
Office and facilitating one free CLE for members advising
members of the proposed system (with 110 member
participants throughout the State)
your society
Publications
Officers prepared six articles for the Society’s publication
The Verdict, on topics such as Henry VIII Clauses, Habeas
Corpus, Mareva and Anton Piller Orders, Negotiating the
Admission Pathway – An Insider’s View, and a substantive
work on Permanent Parenting Orders.
queensland law society 2006/07 39
DepaRtmental reports
Legal and policy
Legal practice consultant
• published three articles in Proctor, namely:
The Legal Practice Consultant, Giles Watson, undertook a
number of initiatives with the following results.
° ‘Risk management as a driver of profitability’,
December 2006
Application to the Professional Standards
Council for approval of a scheme to cap the
liabilities of members
° ‘Have your say: risk management and limiting liability’,
April 2007
Good progress has been made on the development of
an application to the Professional Standards Council for
approval of a scheme to cap the liabilities of members, and
QLS will be in a position to submit an initial application,
based around a cap of $1.5m, in September 2007. In
addition to numerous internal discussions, the development
of this application has included:
• detailed discussions with Lexon Insurance
• consultation and discussion with the profession, through
Proctor, and in face-to-face regional workshops
° ‘Time to re-think the hourly fee?’, May 2007.
Quality Assurance
A business plan for the introduction of a QLS practice
management quality assurance scheme was developed by
Giles and approved by Council, subject to the attainment of
the required financial resources which are presently being
sought.
Seminars and Events
• presented ten ‘Risk Management Update’ sessions as
part of the regional CLE program for the first half of 2007
• meetings, in Sydney and Melbourne, with the Executive
Director of the Professional Standards Council, and with
other Law Societies.
• presented sessions on ‘Profitability’ as part of the regional
CLE program for the second half of 2007
Development of Practice Management and Risk
Management Guidance
During the past year, Giles has:
• presented the CLE ‘Risk Management’ (compulsory CPD)
seminar at QLS, as part of the regional CLE program
for the second half of 2007, and at four additional
consultancy seminars within firms
• authored and revised seven risk management modules of
the online resources for the Practice Management Course
• presented at the QLS ‘Brave New World’ course for
practices considering conversion to ILP/MDP status
• drafted a new QLS guidance on client care and
communication
• spoke at the QLS Symposium on ‘Marketing for
maximum impact and minimum risk’
• authored guidance materials for practices in relation
to the ‘appropriate management systems’ and ‘ten
commandments’ requirements for new ILPs and MDPs
• presented at CLE seminars on ‘supervision’, ‘risk
management for the sole practitioner’, and ‘risk
management for legal support staff’
• authored a number of papers to accompany CLE
seminars on ‘risk management’, ‘supervision’, and ‘risk
management for the sole practitioner’
• chaired two risk management sessions, at the QLS
Property Law Conference, and for the (compulsory CPD)
risk management seminar at QLS
• contributed to two ALPMA seminars, held at Queensland
Law Society.
ILPs, MDPs and Appropriate Management
Systems
Giles has provided, and will continue to provide, advice and
support to practices and others in relation to the provisions
for incorporated legal practices and multi-disciplinary
partnerships under the Legal Profession Act 2007, and
specifically in relation to the required implementation of
‘Appropriate Management Systems’.
Neil Watt has filled the newly-created
position of Ethics Officer at QLS since
February 2007 and provides advice
and guidance for the ethical strategy of
the Society.
40 79th
annual report
www.qls.com.au
Departmental reports
Legal and policy
Ethics strategy report 2007
2006/07 has seen the QLS ethics strategy go from initial
investigation to full implementation. During 2006, QLS
engaged ethics consultant Max Del Mar to survey our
members on their ethical support needs and to investigate
how professional bodies in other jurisdictions address
ethical issues among their members.
Mr Del Mar’s final report made several recommendations
which were adopted by Council. These included:
• the establishment of an Ethics Committee comprising a
range of experienced legal practitioners and academics
• the employment of an Ethics Officer to provide research
and administrative support to the Committee and to
manage the ethics strategy
• the development of links with law schools
• the development of a range of resources and support
networks for practitioners facing ethical decisions.
Following the Council’s adoption of Mr Del Mar’s
recommendations the Ethics Committee was established
and held its first meeting in August 2006.
Chaired by Clare Endicott and comprising 13 elected
members from legal practice and academia, the Ethics
Committee has met in August, October, December, April
and June to deliberate on ethical policy issues facing the
profession and to provide advice to Council on ethical
issues.
QLS employed its first Ethics Officer when Neil Watt joined
the staff in February 2007, following a grant given for this
purpose by the Queensland Law Foundation.
In his short time with the Society, Neil has developed and
commenced the Ethics Strategy which is based on the
recommendations of Max Del Mar.
The strategy has a strong early intervention emphasis
involving links to law schools and supporting the ethical
education of future practitioners.
Support is also being developed for those in practice
including a range of web resources, newsletters and other
support and information services.
Neil’s regular Proctor column, ‘The Right Stuff – Ethics
in Practice’ is being well received. Neil has already
visited James Cook University Law School and hosted a
public lecture in Cairns and Townsville for students and
practitioners on the ethical issues facing the profession.
With the introduction of the Legal Profession (Solicitors)
Rule 2007 on 1 July 2007, the Ethics Committee and
Ethics Officer will have the ongoing task of reviewing the
Rule. They will also be updating the annotations to the Rule
and recommending any amendments to the Rule or its
Guidelines.
Other ethics strategy issues this year include:
• initial consultations on the establishment of a national
legal professional ethics forum
• preliminary plans for a legal professional ethics round
table
• sundry advice to practitioners in response to ethical
enquiries.
The Ethics Committee has now established two
subcommittees to oversee the development of ethics
education and internet resources, as well as to ensure the
currency and relevancy of the Rule. The Ethics Strategy will
also take on responsibility for the development and delivery
of all future compulsory Ethics CLE materials delivered by
the Society.
During the year, Neil also published the following ethics
articles in Proctor:
• ‘The Accidental Ethicist’, April 2007
• ‘Raise Your Gaze’, May 2007
• ‘Shhh... The [Chinese] Walls Have Ears...’, June 2007
QLS Ethics Committee, from
left, are Brian Bartley, Dr Julian
Lamont, Richard Wallace, Dr Reid
Mortensen, Paula Pybyrne, Peter
Mackey, Clare Endicott (chair),
Ross Perrett, Julie-Anne Schafer,
Chris Coyne, and Dr Michael
Robertson. Not pictured are Ian
Hughes and Bill Purcell.
your society
queensland law society 2006/07 41
Departmental reports
Legal and policy
Dispute Management Centre
The DMC continues to be operated by Denise Nicol
(although Denise left in June 2007 and was replaced by
Grace van Baarle) and Felicity Culnane who are responsible
for:
• managing the activities of the Society in its role as an
Authorised Nominating Authority (ANA) under the Building
and Construction Industry Payments Act 2004
• managing the Law Society Approved Mediators (LAMS),
Alternative Dispute Resolution Assistance Scheme
(ADRAS) and Unlawful Termination Assistance Scheme
(UTAS) lists
• responding to requests for the appointment of experts
• providing secretarial support to the Alternative Dispute
Resolution (ADR) Section and the Construction and
Infrastructure Committee.
Alternative Dispute Resolution Assistance
Scheme
The Society identified that the Alternative Dispute Resolution
Assistance Scheme (ADRAS) established under the
WorkChoices legislation could provide a new market
opportunity for Law Society Approved Mediators (LAMS).
It approached the Department of Employment and
Workplace Relations (DEWR) in June 2006 and
subsequently entered into a Memorandum of Understanding
(MOU) with DEWR and registered as a service provider.
Information was subsequently forwarded to all QLS
Mediators advising of selection criteria and inviting them
to attend a training seminar forming part of the selection
criteria for registration on the QLS Panel of Mediators.
The course drew 42 registrations with 15 practitioners
subsequently registering as mediators on the QLS ADRAS
Panel. Under ADRAS, the Society was the first Queensland
provider to have panel members registered.
The Society was able to establish ADRAS with Lexon as
an ‘activity’ under clause (c)(ii) of the Professional Indemnity
Insurance Certificate of Insurance enabling sufficient PI
insurance for service providers in this area.
Most recently the Society has been liaising with practitioners
and campaigning DEWR to more actively promote the
schemes.
Unlawful Termination Assistance Scheme
The Unlawful Termination Assistance Scheme (UTAS) was,
again, initiated from the WorkChoices legislation. The Law
Council of Australia worked with DEWR to establish an
MOU to ‘facilitate the involvement of its constituent... Law
Societies... in the establishment and maintenance of a
register of legal practitioners to participate in UTAS’.
QLS practitioners were again direct-marketed and asked
to register as a provider on the QLS UTAS Panel. Currently
22 firms are registered under the Scheme.
Appointment of experts
It has long been a service that the QLS President ‘appoints’
independent experts (valuers, engineers, accountants,
mediators, arbitrators, etc) according to dispute resolution
clauses in contracts, leases, agreements and so forth.
Due to the number of appointments being made outside the
legal profession, the Society determined that a fee should
be imposed and applied towards the administrative costs
involved in making such appointments. It was determined
that practitioners were not gaining the benefit of this service
as the majority of requests were for valuers or other experts.
A submission was put to Council and it was resolved in
December 2006 that a $330.00 administration fee be
imposed on all future appointments.
During the course of the year, the Society received the
following requests for appointments:
Mediators
3
Valuers
5
Engineers
1
Accountants
1
Arbitrators
4
Independent Person
3
Surveyor
1
Independent Investigation Manager
1
Total
19
Expert model clause
In conjunction with the ADR Section, a model clause was
developed for use by practitioners in order to provide some
consistency within contractual dispute resolution clauses.
This was published in Proctor and has been posted on the
Society’s website for the benefit of members.
Symposium 2007’s Friday night drinks
and gala dinner (photo courtesy of
Toshiba).
42 79th
annual report
www.qls.com.au
Departmental reports
Legal and policy
The Society as an ANA
During the course of the year, the ANA received
approximately two applications per month. The actual
number of applications received is set out in the following
table.
Month
Number of
Applications
July 2006
0
August
2
September
1
October
1
November
3
December
2
January 2007
2
February
4
March
4
April
3
May
3
June
0
Total
25
The operations of the ANA were reviewed in 2007 and a
Business Plan, structured to increase the market share and
further define the Society as an ANA in the marketplace, was
developed and is currently being implemented. Progress
against the business plan is scheduled for May 2008.
Malcolm Hinton
General Counsel
Felicity Culnane, Administration Officer,
Dispute Management Centre:
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queensland law society 2006/07 43
Departmental reports
Secretariat
The Secretariat, headed by the Secretary, Bernie O’Donnell,
provides compliance advice to the Society, undertakes
numerous regulatory functions and maintains member
records.
Under the Legal Profession Act 2004 and ancillary legislation,
the Secretary’s responsibilities include regulatory obligations
such as the issuing of practising certificates and related
matters dealing with practice management course and
continuing professional development requirements,
maintaining the roll of members, conducting Council
elections, conducting the Society’s Annual General Meeting
and liaising with Lexon Insurance Pte Ltd with respect to
professional indemnity insurance matters.
• a total of 7,790 practising certificates were issued during
the year being:
° 2,445 principal practising certificates
°3,307 unrestricted employee practising certificates,
and
° 2,038 restricted employee practising certificates.
The Secretariat also provides administrative support to the
Legal Practitioners Admissions Board, which is located at
Law Society House.
The Secretariat’s main achievements during the 2006/07
year were:
The Secretary is the initial contact for the profession with
respect to a wide range of issues related to practising
law in Queensland, including opening and closing of
legal practices, sharing of receipts, sharing of premises,
certificates of currency, certificates of fitness, show cause
notices relating to convictions, and bankruptcy and general
practice requirements.
• organising the Society’s 2006 Annual General Meeting
held on 25 October 2006
One of the main functions of the Secretariat is to provide
assistance to the Society’s Council and Executive
Committee with respect to agendas and minutes and
coordinating meetings. The Secretariat has been assisted
by General Counsel, Malcolm Hinton, in providing advice to
the Council, the President, the Executive Committee, other
departments and Sections/Committees.
• liaising with the Society’s General Counsel with respect
to volunteer practising certificates, incorporated legal
practices, multi-disciplinary partnerships, registration of
foreign lawyers, and other proposed changes to the Legal
Profession Act and ancillary legislation for introduction on
the anticipated date of 1 July 2007
The Records section is a vital division of the Secretariat. It
maintains the database of all Queensland solicitors and
is responsible for the issuing and renewal of practising
certificates, third-party trust account authorities, certificates
of fitness, and miscellaneous matters involving records.
The statistics from the Records section indicate as follows:
• 887 persons were admitted as legal practitioners in the
Supreme Court of Queensland during the year
• 687 of those new legal practitioners were issued with
certificates to practise as solicitors by the Society
• organising the Society’s 2007 Council Election held on
27 June 2007
• assisting in the organisation of the 2007/08 professional
indemnity insurance for the profession
• implementing changes to deal with amendments to
supervised legal practice requirements
• liaising with the Information Technology section with
respect to improvements to the QLS website
• liaising with the Information Technology section with
respect to the upgrading of the practitioner profile
process
• liaising with the Information Technology section with
respect to upgrading the process of online renewal of
practising certificates.
It has been a challenging year for the Secretariat with both
internal and external changes continuing to flow from the
legal profession reform process.
Bernie O’Donnell
Secretary
Kerry Davis, Manager
Records: QLS records
department received
32,037 phone calls from
1 July 2006 to 30 June
2007. The department
took these calls in only
220 working days!
44 79th
annual report
Legal Practitioners
Admission Board:
Melissa Timmins,
Secretary; Lisa
Green Administration
Assistant; and Julie
Middleton, Senior
Administration Assistant.
www.qls.com.au
Departmental reports
Special projects
The Special Project portfolio undertakes a broad range of
responsibilities; however, its main goals are to:
• identify potential business opportunities that promote the
following outcomes:
° increased QLS revenue streams
° increased member satisfaction
° increased external relationship building
° increased public profile, for both the legal profession
and the Society.
• identify internal business inefficiencies and develop
strategies and protocols to combat these inefficiencies
• management of ‘special projects’ that fall outside of the
scope of the current business units of the Society.
In the past twelve months, the Special Projects Manager
has undertaken a number of initiatives and projects. A brief
outline of the major activities undertaken is provided below.
Project manager –
EventsPro implementation project
This major project involved the initial assessment and set-up
of a complete events software package for Membership
Services’ areas.
Allowing online registration and automation of many
of the more ‘tedious’ administration aspects of events
management (eg speaker letters, delegate confirmations,
name tags, delegate lists, etc), the EventsPro project
represented a major step forward in the efficient
management of QLS events.
The project development and implementation phase
(including initial staff training) of this initiative was
completed in December 2006 with handover to the Director,
Membership and Corporate Services, occurring in early
February 2007.
CPD consultancy
The QLS CPD Consultancy was a new commercial
enterprise for the Society that provided Queensland legal
firms with the opportunity to engage QLS to provide an
in-house service delivering seminars on the compulsory
CPD subjects of trusts, professional standards, and risk
management.
The reasoning behind the development of this consultancy
was threefold, in that the consultancy would:
• provide flexible delivery options of the compulsory CPD
subjects
• promote QLS staff as possessing a level of professional
expertise that is not commonly available in the
commercial marketplace
• be commercially viable for both member firms and QLS.
Future partners workshop project
The objective of the Future Associates/Partners Workshops
is to provide legal practitioners with facilitated direction
in relation to career management as well as a practical
opportunity to develop a professional network of
contemporaries.
Targeting future partners or principals of law firms of various
sizes (eg one to three partners, four to eight partners,
and more than nine partners), the principle behind these
workshops was to provide an educational and networking
forum that allowed legal practitioners to discuss issues,
concerns, and available support mechanisms pertaining
to their future career choices. Developed from practitioner
survey responses and co-delivered by a senior practitioner
and QLS representative, the focus groups for this initiative
were run in May 2007.
Prior to delivery, all presenters attended QLS for a formal
training session in relation to the delivery and purpose of
these groups.
Around 100 newly-admitted solicitors
and young lawyers gathered at Law
Society House on Friday 10 November
2006 for a cocktail function.
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queensland law society 2006/07 45
Departmental reports
Special projects
Business development
This portfolio has had substantial success in obtaining
grant funding and corporate sponsorship in the 2006/07
year to support a range of QLS member programs
including conferences, special events and the Schools and
Community Education Service (SCES).
A number of corporate partnerships have also been
established and/or continued in this period, targeting inter-industry alliance in the commercial, accounting,
research, health and sporting/community arenas.
A core function of this area has been to propose, review and/or assess commercial business opportunities and
conduct internal efficiency reviews. The portfolio has
investigated and provided recommendations in relation to a
number of business opportunities from a member benefits
perspective, whilst internal efficiency drives have been
successfully conducted on a number of key areas of QLS.
Schools and community education service
Whilst this portfolio was transitioned to sit within the
Marketing and Communications area in late February 2007,
the Manager, Special Projects has remained substantially
involved in the administration and supervision of this
program as well as remaining the Managing Editor of the
flagship publication of this program, The Verdict.
The following provides an outline of the achievements in this
portfolio.
The Schools and Community Education Service (SCES)
continues to assist legal educators, students, community
groups and the general public in gaining access to simple,
up-to-the-minute information about the law. The past
year has evidenced a broadening of the services offered
by this program – with greater emphasis on community
engagement.
This subscription-based service provides a broad range of
legal resources (including The Verdict, fact sheets, speakers
register, etc) that have been specifically targeted to provide
easy to read, jargon-free, ‘access to justice’ educational
materials. The program continues to receive substantial
positive inter-agency (eg Legal Aid, Department of Justice
and Attorney-General, etc) and community comment – with
QLS now being invited to participate on a number of interagency working parties on the strength of this scheme.
With the engagement of a dedicated staff member to
manage the activities of this portfolio (Ms Calista Bruschi,
Community Relations Officer) it is expected that the SCES
portfolio will provide expanded opportunities for positive
promotion of the Queensland legal profession.
Functions/events
A number of functions/events were programmed and/or
supervised by this portfolio over the given period including:
• Future Partners Workshops, 1-3 May 2007
• Incoming President’s Dinner, 27 July 2007
• State Legal Educators and Young Lawyers Conference,
27 July 2007
• Inaugural Legal Secretaries, Personal Assistants
and Executive Assistants Summit, 24 August 2007
(incorporating Associate Membership launch)
• QLS European Perspectives on Law Conference,
17 October 2007
• QLS Christmas Cocktails and Awards Evening,
23 November 2007
In summary, it has been a busy year in the Special Projects
portfolio, with a number of additional projects in proposal
stage, leading into the 2007/08 year.
Sharon Burke
Manager, Special Projects
Guests at the QLS Christmas cocktail
function, held at the Sofitel Brisbane
on 8 December 2006.
46 79th
annual report
www.qls.com.au
SECTION/
COMMITTEE REPORTS
qls policy Sections/Committees
Accident Compensation/Tort Law Section
The Council considers that the specialist policy Section and
Committee system is vital to the operation of QLS and vital
to the strength of the legal profession in Queensland.
The Sections and Committees of Queensland Law Society
carry out a wide range of functions including:
• policy development and implementation
• expert advice to Council
• commenting on policy/legislative initiatives and reports by
Government and relevant authorities, and
• bringing attention to problems with the law and seeking
appropriate amendments.
The Sections and Committees also provide a forum for
consideration of practical problems being experienced by
members and as a source of information on various issues
for dissemination to members.
Matt Dunn
Principal Policy Officer
Access to Justice/Pro Bono Section
The Access to Justice/Pro Bono Section is chaired by Mr Pat
Mullins of Mullins Lawyers, Brisbane.
The Access to Justice/Pro Bono Section of Queensland
Law Society deals with developments in the law relating
to access to justice and funding, access, availability and
provision of pro bono services.
During the course of 2006/07, the QLS Access to Justice/
Pro Bono Section considered numerous issues, the most
noteworthy relating to:
• preparing and submitting with the National Pro Bono
Resource Centre a survey on pro bono legal practice in
Queensland
• a Queensland Public Interest Law Clearing House
proposal for the coordination of pro bono legal referral
services for disadvantaged Queenslanders.
The Accident Compensation/Tort Law Section is chaired by
Mr Gerry Murphy AM, of MurphySchmidt, Brisbane.
The Accident Compensation/Tort Law Section of the
Queensland Law Society deals with developments in the law
relating to all forms of accident compensation and tort law
reform.
The Accident Compensation/Tort Law Section met five times
during 2006/07.
The Accident Compensation/Tort Law Section considered
and contributed to the following submissions:
• to the Attorney-General concerning the proposed
increase in the civil jurisdiction of the Queensland Courts
(11 July 2006)
• to the Department of Justice and Attorney-General
concerning proposed amendments to expressions of
regret under ss71 and 72 of the Civil Liability Act 2003 (14 August 2006)
• to the Motor Accident Insurance Commission concerning
the revised draft guidelines for arranging medico-legal
assessments (1 December 2006)
• to the Motor Accidents Insurance Commission providing
comments on a draft rehabilitation brochure (9 February
2007)
• to the Motor Accidents Insurance Commission
concerning the actuarial presentation (12 February 2007)
• to the Attorney-General concerning the review of the Civil
Liability Regulation (4 April 2007)
• to the Kennedy Inquiry regarding aspects of WorkCover
(4 April 2007)
• to the Kennedy Inquiry regarding aspects of WorkCover
(20 April 2007).
The Section also monitored and supported the Law Council
of Australia in its tort law reform agenda.
Pat Mullins
Chair
41 young men and women received
their graduate diplomas in legal
practice from The College of Law
Queensland, at a ceremony at Law
Society House on 30 November.
Pictured are, from left,
Attorney-General Kerry Shine, Justice
Margaret McMurdo, College of Law
general manager education Lewis
Patrick, College of Law Queensland
CEO Ann-Maree David and QLS CEO
Peter Carne.
your society
queensland law society 2006/07 47
section/Committee
reports
Some of the most notable work of the Section included:
Motor Accidents Insurance Commission (MAIC)
– Insurer Briefing
Representatives of the Section, including the Society’s
President, Mr Joe Pinder, attended the annual MAIC CTP
Actuarial Insurer Briefing.
At the sessions, representatives from the Section made
representations to the MAIC Board concerning the affect
of the Civil Liability Act provisions on the CTP scheme
and called for the capping of general damages to injured
Queenslanders to be removed.
Review of Proposals on Aspects of WorkCover
Queensland Operations
The Section prepared, on behalf of the Society, two
submissions to the review of aspects of WorkCover
conducted by Mr Jim Kennedy.
In its submissions, the Society addressed many of the
pertinent issues relevant to the successful operation of
WorkCover Queensland and which employers may wish
to consider when choosing between the WorkCover and
ComCare schemes.
The Society was of the view that amongst the relevant
attributes of the WorkCover scheme were: the lower rates of
disputation of claims, significantly shorter periods for claims
resolution, higher levels of payments to claimants as a
percentage of scheme expenditure, the solid self-sustaining
position of the scheme and the difference in relative
premiums with ComCare.
In the second submission the Society explored the
possibility for a national corporation to enter ComCare in
other States while remaining in the Queensland scheme with
respect to its local employees.
Compulsory Third-party Insurance Claimants
Brochure
The Section prepared, on behalf of the Society, a
submission to the Motor Accidents Insurance Commission
concerning the content of a proposed brochure for
claimants.
The Society was generally in support of the brochure but
sought clarification of provisions relating to entitlements
to rehabilitation, seeking the assistance of a solicitor and
clearly setting out the situations where an insurer will pay for
certain rehabilitation services.
48 79th
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Draft Guidelines for Arranging Medico-legal
Assessments
The Section prepared, on behalf of the Society, a
submission to the Motor Accident Insurance Commission
regarding their proposed Guidelines for arranging medicolegal assessments.
In making the Society’s submissions, the Section supported
the development of Guidelines and suggested that issues
relating to doctor’s questionnaires, which contained
questions relating to liability and the provision of details for
travel arrangements for claimants to attend medico-legal
assessments, needed to be clarified.
Gerry Murphy AM
Chair
Alternative Dispute Resolution Section
The Alternative Dispute Resolution (ADR) Section is chaired
by Phil Scott of Crouch & Lyndon, Brisbane.
The ADR Section of the Queensland Law Society aims to
have QLS recognised by the community as the leader in
dispute resolution, promoting the delivery of ADR services of
the highest standard by its members.
The ADR Section met seven times during 2006/07.
During the course of 2006/07, the ADR Section considered
and contributed to the following submissions:
• to the Federal Attorney-General’s Department concerning
specialist accreditation of ADR practitioners and
requirements of the Family Law Act (28 February 2007)
• to the Department of Employment and Workplace
Relations concerning the commencement of the Unlawful Termination Assistance Scheme with QLS
(1 September 2006)
• to the Law Council of Australia concerning statutory
immunity for practitioners in the ADRAS scheme
(16 October 2006).
Some of the most notable work of the Section included:
Alternative Dispute Resolution Assistance
Scheme (ADRAS)
The Scheme is a subsidised dispute resolution process
for employees with employment issues arising from the
WorkChoices legislation, which QLS has been invited to
join by the Commonwealth Government through the Law
Council of Australia.
www.qls.com.au
Section/
Committee reports
The ADR Section prepared for the Society a submission to
the Law Council of Australia to advocate for the inclusion
of a statutory immunity from liability for negligence with
respect to action taken by, or a failure to act by, a member
of the Society providing services to an employee under the
arrangements of this Scheme.
The Section also assisted in coordination of a training course
for qualification of members to be registered for ADRAS
and putting in place an annual fee by QLS for ADRAS
registration.
Expert referral clause
Business Law Section
The Business Law Section is chaired by Mr David Grace, of
Cooper Grace Ward of Brisbane.
The Business Law Section deals with all developments in
the law relating to business. It is comprised of, and provides
direction to, the following Committees:
• banking and financial services
• franchising
• industrial law
• insolvency (which is part of the Law Council of Australia)
An expert referral clause suitable for inclusion by members
in Agreements was drafted and made available to
members through the QLS website. QLS, on the Section’s
recommendation, put in place a fee for expert referrals.
Ethical Guidelines for Mediators
The Section reviewed the QLS Standards of Conduct for
Solicitor Mediators, with particular reference to the recently
revised Law Council Ethical Guidelines for Mediators.
Revised Standards of Conduct were recommended to QLS
Council and approved in June 2007.
Specialist Accreditation for Solicitor
Mediators
The Section reviewed the Assessment and Performance
Standards and Guidelines for Mediators’ course, and
provided representation on the Advisory Committee.
Collaborative Law Process
The Section reviewed a document received from the Law
Council of Australia on the collaborative law process and
provided a response which was sent to Council.
Accreditation for Family Law Mediators
The Section reviewed the Attorney-General’s requirements,
and assisted with putting in place liaison with affected
members.
National Mediator Accreditation
• intellectual property and information technology law
• revenue law.
The Business Law Section met four times during 2006/07 in
addition to meetings of the individual Committees.
During the course of 2006/07, the Business Law Section
considered and contributed to the following submissions:
• to the Department of Local Government, Planning, Sport
and Recreation concerning the draft discussion paper
on penalty infringement notices under the Integrated
Planning Act 1997 (10 July 2006)
• to the Department of Public Works concerning the review
of the State Purchasing Policy (19 July 2006)
• to the Department of Justice concerning the draft
Guideline for the use of PINs under the Integrated
Planning Act 1997 (10 May 2007).
Some of the most notable work of the Section included:
Electronic Funds Transfers from Solicitors
Trust Accounts
The Section prepared a significant submission to Council
examining the circumstances surrounding solicitors making
EFT payments from their trust accounts. The proposed
model addressed issues relating to both direct debit and
outward electronic funds transfer type transactions. It was
adopted by the Council and has since been implemented in
Queensland.
The Section continued to liaise with NADRAC in relation to
implementation of National Accreditation for Mediators and
putting in place National Approval and Practice Standards.
Hopgood Ganim received the 2006
Employer of Choice Award, judged
by the QLS Equalising Opportunity in
the Law Committee. Pictured are the
award winners, with QLS President
Joe Pinder (third from left).
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queensland law society 2006/07 49
section/Committee
reports
Newsflash CLE Series – Anti-Money Laundering
(AML) Legislation
The Business Law Section chair, Mr David Grace, and the
Banking and Financial Services Committee, Mr Randal
Dennings, presented a very informative Newsflash CLE
session on 24 April 2007.
The session outlined the scope and operation of the
provisions of the first tranche of the AML legislation,
discussed their applicability to Queensland legal practices,
and examined the possible content of the second tranche of
the legislation to be implemented in 2007/08.
Guidelines for the use of Infringement Notices
under the Integrated Planning Act
The Business Law Section together with the Planning
and Environment Law Committee prepared, on behalf
of the Society, a submission to the Department of Local
Government, Planning, Sport and Recreation concerning
proposed Guidelines for the use of Penalty Infringement
Notices (PINs) under the Integrated Planning Act.
Office of State Revenue – Duties Online Project
Section members met with representatives of the Office of
State Revenue (OSR) for a briefing presentation of OSR’s
planned development of its Revenue Management System,
Duties Online, designed to enable duties self assessors
to lodge returns and make payments via a secure system
through the OSR website.
State Purchasing Policy Review
The Section prepared for the Society a submission to
the Department of Public Works with respect to the
State Purchasing Policy Review, relating specifically to
the percentage of government procurement to Small to
Medium Enterprises (SMEs), and issues arising out of the
Commonwealth WorkChoices legislation.
Intellectual Property
and Information Technology Committee
The Intellectual Property and IT Committee is a Committee of the Business Law Section and is chaired by
Jacqui Rigby-King, of Rigby-King Lawyers, Brisbane.
During the course of 2006/07 the Intellectual Property and
IT Law Committee adopted an educational approach which
included producing a newsflash article about Grant’s patent
application and an accompanying seminar, as well as an IP/IT seminar on valuing practices. Members of the
Committee have contributed to other articles published
through various mediums.
The Committee has also been discussing a protocol for
solicitors about improving use and protection of IP in their
firms.
Franchising Committee
The Franchising Committee is a Committee of the Business
Law Section and is chaired by Derek Sutherland of Dibbs
Abbott Stillman, Brisbane.
During the year, the Franchising Law Committee prepared,
on behalf of the Society, a comprehensive submission to
the Federal Department of Industry, Tourism and Resources
review of the Franchising Code of Conduct (17 August
2006). The submission noted issues which may arise in
the implementation of the outcomes of the review and
also made comment about whether making delivery
of certificates of legal advice should be mandatory in
establishing a franchise.
The Committee also undertook a review of the content of
the Society’s public information relating to franchising for
accuracy and recent changes to legislation.
David Grace
Chair
Top students awarded: University students studying law in Queensland were
recognised for academic excellence at a function hosted by Queensland
Law Society in May 2007. The Attorney-General and Minister for Justice, Kerry
Shine, presented prizes and indigenous scholarships to the law graduates
and QLS president Joe Pinder was present to commend the prize winners.
The students, pictured with Mr Shine, centre, and Mr Pinder, third from right,
are, from left to right: Greg Douglas (Griffith University), Melissa Swain and
Thomas Nevin (both University of Queensland), Cassandra Lang (Queensland
University of Technology), Kavita Paw (UQ), Diane Ruhl (James Cook
University), Emma Hoiberg (QUT) and Karen Beattie (Griffith).
50 79th
annual report
www.qls.com.au
Section/
Committee reports
Banking and Financial Services Committee
The Banking and Financial Services Committee is a
Committee of the Business Law Section and is chaired by
Randal Dennings of Clayton Utz, Brisbane.
During the course of 2006/07, the Banking and Finance
Committee considered and contributed to the following
submissions:
• to the Office of Fair Trading, Cost of Consumer Credit
Project, concerning the Managing the Cost of Consumer
Credit in Queensland Discussion Paper (15 December
2006)
• to the Department of the Federal Attorney-General
concerning the Personal Property Securities Review
(8 February 2007)
• to the Queensland Attorney-General concerning the
Personal Property Securities Review (8 February 2007)
• to the Australian Law Reform Commission (ALRC)
concerning review of privacy and credit reporting
provisions (20 April 2007)
• to the Department of Fair Trading concerning proposals
for regulation of finance brokers (11 May 2007)
• to the Department of the Federal Attorney-General
concerning the second discussion paper in the Personal
Property Securities Review (18 May 2007)
• to the Queensland Attorney-General concerning the
second discussion paper in the Personal Property
Securities Review (18 May 2007)
• to the Department of the Federal Attorney-General
concerning the third discussion paper in the Personal
Property Securities Review (14 June 2007)
• to the Queensland Attorney-General concerning the third
discussion paper in the Personal Property Securities
Review (14 June 2007).
Some of the most notable work of the Committee included:
Personal Property Securities Law Review
– Submissions to Three Discussion Papers
The Banking and Finance Committee of the Business Law
Section prepared, on behalf of the Society, three considered
and fulsome submissions to the Personal Property
Securities Review being undertaken by the Federal AttorneyGeneral’s Department during the year.
your society
In the first submission the Society supported the
establishment of a single national legal regime and registry
for personal property securities. The Society’s comments
addressed various topics, including the stamp duty issues
presently affecting the registration of personal property
securities, registering security interests easily in the name
of partnerships, and optional facilities for the lodgement of
security agreements.
In the second submission the Society addressed aspects
relating to extinguishment, priorities, conflict of laws,
enforcement, and insolvency. This detailed work addressed
standard enforcement provisions and commented on issues
surrounding fixtures, crops and accessions – preferring the
present Canadian model to the system in New Zealand.
In the third submission the Society addressed possessory
security interests, including, more specifically, securities
entitlements and control of investment properties, rights
of assignees with respect to chattel paper and accounts
receivable, and payments derived from interests in land.
Review of Privacy – Credit Reporting
Provisions
The Committee also prepared on behalf of the Society a
submission to the Australian Law Reform Commission’s
review of privacy legislation concerning credit reporting. In
the submission the Committee addressed only legal issues
relating to matters such as:
• the efficacy of the Privacy Commissioner’s powers
regarding credit information
• the process for, and effects of, listing of debts
• the efficacy of methods for reviewing the accuracy of
credit information
• issues surrounding the disclosure of personal information.
Regulation of Finance Brokers in Queensland
The Committee prepared, on behalf of the Society, a
submission to the Department of Tourism, Fair Trading
and Wine Industry Development concerning regulation of
finance brokers. In its submission the Society supported the
provision of a Mandatory Code of Conduct being introduced
for finance brokers, with certain provisions being made for
internal dispute resolution procedures.
queensland law society 2006/07 51
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reports
Managing the Cost of Consumer Credit in
Queensland
The Committee prepared, on behalf of the Society, a
submission in response to the Queensland Office of Fair
Trading Discussion Paper titled Managing the Cost of
Consumer Credit in Queensland.
The submission addressed several issues related to
consumers suffering detriment as a result of high interest/cost loans and proposed a number of options
to reduce the detriment being suffered by vulnerable
consumers. The submission identified the further promotion
of No Interest Loans Schemes (NILS) and Low Interest
Loans Schemes (LILS) as a viable alternative for vulnerable
consumers to high-cost credit. It also recommended
preventing lenders from accepting household goods as
security for consumer credit and bringing promissory notes
and bills of exchange within the Consumer Credit Code.
UCCCMC/QLS Discussion Forum
The Uniform Consumer Credit Code Management
Committee (UCCCMC) participated in a forum of
practitioners hosted by QLS as an adjunct to the Credit Law
Conference on 29 September 2006.
The forum provided an opportunity for practitioners to share
concerns, comments and views with UCCCMC members
on credit code developments and for UCCCMC members to
provide direct feedback.
Ian Clyde, chair of the UCCCMC, was pleased with the
feedback received and indicated that this was a worthwhile
model for future consultations.
Revenue Law Committee
The Revenue Law Committee is a Committee of the
Business Law Section and was chaired by Peter Allen of
Allens Arthur Robinson, Brisbane, who stepped down during
the course of the year.
The former chair, on behalf of the Committee, made a
significant contribution to a meeting of the Business Law
Section with representatives of the Office of State Revenue
concerning their developing Duties Online system.
Insolvency Law Committee
The Insolvency Law Committee is a Committee of the
Business Law Section chaired by Peter Schmidt of Deacons,
Brisbane and is part of the Law Council of Australia.
The Committee deals with both personal insolvency and
corporate insolvency matters by assisting in producing
submissions in the federal arena through the Law Council.
As insolvency is a national issue, members of the
Committee will often sit on subcommittees with practitioners
from other jurisdictions to assist in preparing these
submissions.
Industrial Law Committee
The Industrial Law Committee is a Committee of the
Business Law Section and is chaired by Anne Milner of
Milner Lawyers, Brisbane.
During the year the Industrial Relations Committee has
made an informal submission concerning the changes
to the Queensland Workplace Relations legislation which
reflected changes made in NSW. The Committee also
dealt with contractor’s legislation and prepared educational
materials for the profession with regard to this.
The Committee has been preparing a newsflash session on
the effect of present proposals to create a new low costs
jurisdiction for industrial issues.
Additionally, the Committee contributed to the Society’s
submission to the Department for Workplace Relations to
express concerns relating to the operation of the Unlawful
Termination Assistance Scheme (UTAS) and the Society’s
role within that framework (29 May 2007). The Society noted
that practitioner feedback indicates poor public awareness
of the Scheme.
It suggested that the Department undertake a public
awareness campaign to inform employees about the UTAS
provisions. The submission also addressed issues with the
design of the scheme and suggested modifying the form to
provide assistance for employees to obtain advice during
the twenty-one day limitation period following an unlawful
termination.
High Court judges’ lunch at QLS: incoming
QLS president Megan Mahon hosted the
annual, and now traditional, High Court
judges’ lunch at Law Society House late
in June 2007. Mrs Mahon is pictured with,
from left, Chief Justice Murray Gleeson AC
and Justices Kenneth Hayne AC and Dyson
Heydon AC.
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Children’s Law Section
Some of the most notable work of the Section included:
The Children’s Law Section is chaired by Mr Graham
Quinlivan of Legal Aid Queensland, Brisbane.
Indigenous Young People in Detention
The Children’s Law Section of the Queensland Law
Society deals with legal issues relating to the rights and
representation of children and juveniles in Queensland,
particularly involving education, juvenile justice, immigration,
disability and health services, and child safety.
The Children’s Law Section met on a monthly basis during
2006/07.
During the course of 2006/07, the Children’s Law Section
considered and contributed to the following submissions:
• to the Chief Magistrate concerning the availability of
alternate sentencing options for Magistrates in remote
and regional areas with respect to indigenous young
people (11 August 2006)
• to the Attorney-General and the Minister for Police and
Corrective Services concerning the Chief Magistrate’s
suggestions regarding the over-representation of young
indigenous people in detention (21 September 2006)
The Society wrote to the Minister for Human Services
expressing concern about the impact of the proposed
Access Card on youth. The Society is of the view that
young people who are not living with their parents will have
considerable difficulties obtaining an Access Card and
ultimately be deprived of access to necessary government
services.
The Society endorsed the position taken by the
Commissioner for Children and Young People and
recommended that the Bill allow for young people to
continue to be able to obtain an Access Card from the age
of 15 years, as the law currently provides, without exemption.
• to the Chief Magistrate in response to his letter raising
suggestions regarding the over-representation of young
indigenous people in detention (21 September 2006)
• to the Chief Magistrate concerning the separation
of Police Stations and Court facilities in indigenous
communities (9 March 2007)
Permanent Parenting Orders
The Society wrote to the Minister for Child Safety to endorse
the position taken by Legal Aid Queensland with regard to
the proposed new permanent placement option, Permanent
Parenting Orders.
• to the Minister for Police and Corrective Services
concerning the separation of Police Stations and Court
facilities in indigenous communities (9 March 2007)
• to the Minister for Communities concerning the review of
the Juvenile Justice Act (9 May 2007)
• to the Federal Minister of Human Services concerning the
proposed Access Card (25 May 2007)
• to the CMC Inquiry into Policing in Indigenous
Communities (15 June 2007).
Following these letters, the Society sent further submissions
to the Attorney-General and Minister for Police and
Corrective Services focusing on the importance of
addressing the perception in some communities that the
court is merely a part of the prosecution process when
courts are located in, or attached to, police stations.
Access Card
• to the Minister for Communities, Disability Services and
Seniors concerning the over-representation of indigenous
young people in detention (30 August 2006)
• to the Minister for Child Safety concerning proposed
permanent parenting orders (25 May 2007)
The Section prepared letters to the Minister for Communities,
Disability Services and Seniors and the Chief Magistrate
setting out serious concerns about the over-representation
of indigenous young people in detention, and inquired about
the availability of alternate sentencing options to Magistrates.
The Society emphasised the necessity for sound legal
processes for hearings and orders relating to children
and families involved in the child protection system
and contended that the legal framework supporting
the proposed Permanent Parenting Order appears to
be inadequate. The Society urged reconsideration of
the introduction of the Permanent Parenting Order and
expressed the view that a more meaningful legislative reform
would be to clarify the nature and operation of long term
guardianship orders.
Graham Quinlivan
Chair
High Court judges’ lunch at QLS: Among the
other guests were Law Council of Australia
president Tim Bugg (left) and Queensland
Bar Association president Martin Daubney SC.
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Company Law Section
The Company Law Section is chaired by Mr Greg
Vickery AM, Brisbane Chairman of Deacons.
The Company Law Section of the Queensland Law Society
also acts as the Law Council of Australia Business Law
Section, Corporations Committee Chapter in Queensland
and deals with developments in the law relating to the
regulation of corporations and their officers.
As corporations law is largely regulated on a national
basis, the Section primarily contributes to the production of
submissions for the Law Council at a national level.
The Company Law Section met nine times during 2006/07.
During the course of 2006/07 the QLS Company Law
Section considered numerous discussion papers issued
by regulatory and representative bodies. Among the many
papers, the most noteworthy issues related to:
Throughout the course of the year representatives of the
Federal Bench, ASIC, the ASX and the Takeovers Panel
have attended and contributed to meetings of the Company
Law Section.
Some of the most notable work of the Section included:
Review of the Associations Incorporation
Act 1981
The Society’s Company Law Section prepared, with
the assistance of Professor Myles McGregor-Lowndes
of Queensland University of Technology’s Centre of
Philanthropy and Non-Profit Studies, a submission for the
Society to The Commissioner for Fair Trading, containing
recommendations on the review of the Associations
Incorporation Act 1981.
• CAMAC paper ‘The Social Responsibility of Corporations’
In the submission, the Society was in favour of the
introduction of a tiered reporting regime, as this may
overcome existing difficulties in obtaining audits for some
incorporated associations. However, the Society expressed
concerns about certain elements of the reporting system
and provisions relating to public liability insurance.
• CAMAC paper ‘Corporate Duties below Board level’
Greg Vickery AM
Chair
• Corporation and Markets Advisory Committee (CAMAC)
paper ‘Personal Liability for Corporate Fault’
• review of sanctions in corporations law
• review of the Operation of the Infringement Notice
Provisions of the Corporations Act
• Corporations Amendment (NZ Closer Economic
Relations) Bill 2006
• Insider Trading – a Position and Consultation Paper
• financial reporting by unlisted public companies
• the change of ATO position on the taxing of renouncable
rights issues.
During the course of 2006/07, the Company Law Section
contributed to a submission to the Commissioner of
Fair Trading concerning the review of the Associations
Incorporation Act 1981 (18 July 2006).
In a collaboration with the Society’s CLE section, the
Company Law Section presented a very successful half-day
company law workshop on Friday 23 March 2007 focusing
on:
• offshore bribery and corruption in relation to public
companies
• corporate ethics
• the implications of the Concept Sports case
• incoming anti-money laundering legislation
• continuous disclosure
• a panel discussion with key local regulators and eminent
persons.
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Criminal Law Section
The Criminal Law Section is chaired by Mr Sean Reidy of
Carne Reidy Herd, Brisbane.
The Criminal Law Section deals with developments relating
to all aspects of criminal law.
The Section met seven times during 2006/07.
Arising out of the Section’s work on terrorism legislation,
the Section formed a Human Rights Research Committee
which has taken on research projects on a number of issues.
The first product of this work was a submission to the
Queensland Government on a Bill of Rights.
The Criminal Law Section considered and contributed to the
following submissions:
• to the Premier concerning a Human Rights and
Responsibilities Act for Queensland (3 July 2006)
• to the Attorney-General concerning Cabinet approval of a
new crime of identity theft (17 July 2006)
• to the Senate Legal and Constitutional Committee
concerning the inquiry into the Crimes Amendment (Bail and Sentencing) Bill 2006 (26 September 2006)
• to the Department of Justice concerning the Private
Members Bill to amend the Criminal Code with respect to
double jeopardy provisions (17 November 2006)
• to the Chief Magistrate concerning the precedence of
practitioners in arrest court matters (1 December 2006)
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• to the Premier concerning amendments to the Anti-Terrorism laws (28 February 2007)
• to the Attorney-General concerning amendments of
the Evidence Act to abolish the original document rule
(13 March 2007)
• to the Attorney-General concerning proposed
amendments to the Jury Act 1995 (16 March 2007)
• to the Minister for Transport and Main Roads concerning
involvement in the Department’s consultation process
(19 March 2007)
• to the Attorney-General concerning issues related to the
selection of jurors and directions to juries in Queensland
(22 March 2006)
• to the Attorney-General concerning the review of the
Criminal Proceeds Confiscation Act 2002 (4 May 2007)
• to the Attorney-General concerning access to the
Queensland Sentencing Information Service for
practitioners (17 May 2007)
• to the Attorney-General concerning the Criminal Code
(Double Jeopardy) Bill 2007 (21 May 2007)
• to the Attorney-General concerning the Criminal Offence
Victims Act 1995 (31 May 2007)
• to the Attorney-General concerning private members’
Bills: Criminal Code (Organised Criminal Groups)
Amendment Bill 2007 and the Bail and Penalties and
Sentences Amendment Bill 2007 (8 June 2007)
• to the Minister for Police and Corrective Services
concerning the inclusion of appropriate numbers of
interview rooms in the expansion of the Arthur Gorrie
Correctional Centre (19 June 2007).
Some of the most notable work of the Section included:
Terrorism Legislation Amendments
The Society’s Legal and Policy department, together with
the Criminal Law Section prepared, on behalf of the Society,
a response to the Queensland government’s proposed
amendments to the existing terrorism legislation.
The Society reiterated and confirmed the position taken by
the Bar Association of Queensland and the Society in the
joint submission made to government when the legislation
was first introduced in November 2005.
The Society commended the government for proposing
numerous positive amendments to the terrorism legislation
(some of which had been suggested in the original Bar/Society joint submission).
However, general principled opposition to the concept of
preventative detention remains, the Society suggested the
further points:
• that detainees be accorded the right to confidential
unrecorded communication with their lawyer (regardless
of the security clearance status of the lawyer)
• that the Supreme Court of Queensland be made the
‘issuing authority’ for preventative detention orders
• that when a detention order has been made against a
child, it is void ab initio and the child shall be released
‘forthwith’
• that an application for a consecutive detention order
against one person is dealt with de novo and, in any
event, does not cumulatively exceed the detention limits
set out in the Terrorism (Preventative Detention) Act
• that both the detainee and the Public Interest Monitor are
given a defined period of notice of any order made by an
issuing authority against the detainee
• that prohibited contact orders are only made with respect
to preventing a terrorist event and specify that no contact
can be made with specific individuals rather than a
generic prohibition
• that a detainee receive a defined period of notice and
rights of review of a prohibited contact order
• that contraventions of safeguard provisions by police
officers should be included as offences under the Act
• that a lawyer representing a detainee should be permitted
to communicate confidentially with his/her staff and other
lawyers regarding a detention order
• that detainees with a limited understanding of English
should, at all stages in the detention, be assisted by an
interpreter appointed or approved by the issuing authority
• that proceedings for the issue and review of a detention
order should include all aspects of natural justice,
including the calling and examination of witnesses and
access to full details of the evidence against a person
On a LAWASIA fact-finding mission to Fiji: pictured are, from left,
former QLS president and Councillor Raoul Guides, Fiji’s Minister for
Labour, Minister for Tourism, Industrial Relations, Productivity and
Environment Mrs Bernadette Rounds Ganilau, LAWASIA secretarygeneral Ms Janet Neville, LAWASIA president Mah Weng Kwai, Fiji
Attorney-General and Minister for Justice Aiyaz Sayed-Khaiyum,
Minister for Finance Mahendra Chaudhry, and LAWASIA executive
member and former president Dr Gordon Hughes.
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• that the Act be subject to comprehensive review every
two years by an independent body such as the Crime
and Misconduct Commission
• that records and documents created pursuant to the Act
should comprise a part of the records of the State and be
accessible to detainees and to other parties subject to
the FOI application provisions.
Criminal Offence Victims Act 1995
The Society wrote to the Attorney-General regarding
proposed amendments to improve the effective
administration of the Criminal Offence Victims Act 1995.
The Society is aware that victims face difficulties with serving
an application under the Act when the convicted offender
can not be located.
The Society supports amending the Act to allow the victim’s
application to proceed in circumstance where the judge
hearing the application is satisfied that all reasonable steps
have been taken to bring the application to the notice of the
offender.
Success on Access to Queensland Sentencing
Information System (QSIS)
The Society wrote to the Queensland Attorney-General
requesting access to the sentencing database for all
relevant practitioners.
The QSIS database includes a complete set of state and
federal legislation as well as precedent case law from
the High Court dating back to 1947 and the Queensland
Court of Appeal from 2000, as well as practice directions
and a link to the Supreme and District Courts Bench Book.
Practitioners can now access the database via subscription
to the system.
Criminal Proceeds Confiscation Act
The Society participated in the review of the Criminal
Proceeds Confiscation Act expressing concern to the
Attorney-General about the legislation’s impact on both civil
rights and property rights, most notably:
• the privilege against self-incrimination has been removed
• property can be seized without compensation
The Society believes that this is a fair and appropriate
amendment. However, the Society requested that the
Department of Justice and Attorney-General consider further
amending the legislation to retain ability for the offender to
re-open the compensation proceedings.
• a person’s business can be frozen and ultimately ruined
Brisbane Magistrate Court Focus Group
• findings of guilt of a criminal offence on the civil standards
of proof can be made by a judge sitting alone before a
criminal trial is held.
The Society also recently presented members’ views at a
Brisbane Magistrate Court focus group to discuss court
users’ impressions of the new facilities. Members of the
Criminal Law Section expressed concerns about lack of
access to interview rooms and the need for more tables
and chairs in rooms to meet with clients. They also raised
the issue of security access and noted that private solicitors
should have the same security access as the Director of
Public Prosecutions and the Department of Justice and
Attorney-General.
• access to funding for legal fees can be denied
• an accused person can ultimately end up selfrepresented or burdening the resources of Legal Aid
The Society urged the Government to conduct a
comprehensive review of the legislation, and to make
necessary amendments to ensure that the legislation
adheres to fundamental principles of criminal justice.
Double Jeopardy
The Society wrote to the Attorney-General to express serious
reservations about any move to overturn this time-honoured
and basic legal principle.
Détente, Queensland-style: A high-profile Russian delegation of
lawyers, judges and academics visited Queensland Law Society
in late October 2006, seeking to increase their understanding of
Queensland’s legal system and, in particular, the role played by
QLS. Led by the dean of the law faculty at Moscow State University,
Aleksandr Golichenko, the delegation included members of the
Central Council, the Praesidium and the Executive Committee of the
Association of Lawyers of Russia (ALR).
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The Society noted that, as currently drafted, the Bill does not
adequately define what constitutes ‘fresh and compelling
evidence’, and it fails to set the burden of proof required to
satisfy the Court that it is in the ‘interests of justice’ to make
an order for retrial of an acquitted person.
The Society encouraged the Government to ensure that, if
changes to the double jeopardy protections are adopted
by Parliament, the language and content of the Bill provides
sufficient safeguards to protect citizens from retrial and
preserve the foregoing fundamental principles of law.
Arrest Court Arrangements
The Criminal Law Section has prepared, on behalf of the
Society, correspondence to the Chief Magistrate raising
concerns with present arrangements with respect to the
priority of legal practitioners in the arrest court.
Given that advocacy in the arrest court is predominantly by
members of the Society it has been proposed that:
• priority in represented adjournments is given on a first
come, first served basis
• priority in represented pleas of guilty and bail applications
is given in order of seniority of admission as a legal
practitioner.
Proposed Amendments to the Jury Act 1995
The Society also made a submission in support of
amending s53 of the Jury Act 1995 to allow the court or
judge to order that a jury be permitted to separate in criminal
proceedings after it retires to consider the verdict.
The Society expressed its view that the current practice of
requiring juries to stay together puts excessive pressure on
jurors. Additionally, the Society appreciates the difficulties
faced when trying to find accommodations for jurors in
remote areas.
Proposed Amendment to the Evidence Act to
Abolish the Original Document Rule
The Society wrote in opposition to a proposal to amend the
Evidence Act 1977 to abolish the current rule in relation to
production of original documents.
The Society noted that while the proposed amendments
may be favourable in civil proceedings, the production
of original documents is a tenet of criminal jurisprudence.
Abolishing this requirement, as proposed by the
amendment, would impede the accused person’s ability to
defend him or herself from allegations brought by the Crown.
your society
Although production of original documents may be less
flexible, more complex, and more costly than producing
evidence under the uniform evidence laws, in criminal
matters the inherent safeguards provided by the best
evidence principle outweigh the arguments in favour of
abolishing the rule.
Inquiry into the Crimes Amendment (Bail and
Sentencing) Bill 2006
The Section reviewed a submission to the Senate Legal and
Constitutional Committee into the Crimes Amendment (Bail
and Sentencing) Bill 2006. The Bill proposed the removal of
cultural considerations from the factors which may be taken
into account when passing sentence.
The Society opposed the reduction of the scope of
discretionary powers granted to magistrates and judges to
administer fair and appropriate sentences.
A Human Rights and Responsibilities Act for
Queensland
A comprehensive discussion paper was prepared on this
issue by the Human Rights Research Group, convened
jointly by Peter Applegarth SC and Sean Reidy, which is
associated with the Society’s Criminal Law Section.
The primary purpose of the paper was to canvass a
number of issues that Queenslanders and the Queensland
Government would need to consider in assessing the case
for a Human Rights Charter.
It found that many people within the community consider
that there is a need to better protect and promote human
rights, especially for disadvantaged and marginalised
people.
It was proposed that a Human Rights and Responsibilities
Act would improve the processes of government by setting
minimum standards to be observed.
Sean Reidy
Chair
Elder Law Section
The Elder Law Section is presently chaired by Mr Brian
Herd of Carne Reidy Herd, Brisbane. During the year longstanding chair, Ms Annie O’Connor, of DLA Phillips Fox
Lawyers stepped down.
The Elder Law Section is primarily concerned with areas of
law that impact on the elderly. These include estate planning
(wills, powers of attorney, and capacity), elder abuse,
retirement village and aged care law and practice, and the
health and care of the elderly.
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The Elder Law Section met six times during 2006/07, holding
their meetings bimonthly. Subcommittees of the Section met
frequently to consider, in further detail, some of the matters
detailed below.
The Elder Law Section considered and contributed to the
following submissions:
• to the Office of Fair Trading concerning the Retirement
Villages Good Business Guide (10 July 2006)
• to the Queensland Law Reform Commission concerning
the guardianship review (3 November 2006).
In addition to holding its annual Elder Law conference in
June, which featured an interactive video link to American
elder law attorneys, some of the most notable work of the
Section included:
Guardianship and Administration Tribunal
Working Party
Members of the Queensland Law Society Elder Law
Section represented the Society at a Guardianship and
Administration Tribunal working party discussion examining
financial abuse of the elderly.
The group focused on practical ways to improve the system
including mechanisms to enhance safeguards protecting
the elderly. Efforts will focus on revisions to the enduring
power of attorney forms and training and educating families,
legal practitioners, and justices of the peace.
Queensland Law Reform Commission’s
Guardianship Review
The Elder Law Section prepared, on behalf of the Society, a
submission to the Queensland Law Reform Commission
highlighting the importance of maintaining an appropriate
balance between confidentiality and public scrutiny when
dealing with personal information.
Retirement Villages Good Business Guide
The Elder Law Section prepared a submission for the
Society to the Office of Fair Trading with respect to the
Retirement Villages Good Business Guide making a number
of suggestions with regard to the accuracy of the content of
the Guide.
Brian Herd
Chair
Family Law Section
The Family Law Section is chaired by Ms Julie Harrington of
Harrington Family Lawyers, Brisbane.
The Family Law Section is concerned with developments
in the law relating to family law matters, and highlighting
existing concerns with current regulatory schemes.
As family law is largely regulated on a federal basis, the
Section contributes to the production of submissions on
behalf of the Law Council of Australia on a national level. It also makes submissions to other federal bodies, such as
the Family Law Council or the Child Support Agency, when
requested to do so, about family law matters.
The Section has enjoyed a greater role in continuing legal
education planning and participated jointly with the Family
Law Practitioners’ Association in preparing for the annual
Family Law Residential.
The Section met nine times during 2006/07 and considered
numerous discussion papers issued by regulatory and
representative bodies. Throughout the course of the year
representatives of the Family Court have attended and
contributed to meetings of the Section and members of the
Section have attended liaison meetings at the Family Court
from time to time.
The Family Law Section contributed to, and drafted, the
following submissions:
• to the Family Law Council concerning developments in
collaborative law (19 July 2006)
• to the Family Law Council concerning the draft Best
Practice Guidelines for Collaborative Family Law Practice
(1 September 2006).
Julie Harrington
Chair
Government Lawyers Section
The Government Lawyers Section is chaired by Ms Fiona
Fitzpatrick of the Office of Fair Trading.
Mission statement
The Section’s mission is to represent the interests of
Queensland’s government lawyers by:
• facilitating a mutually beneficial relationship between
Queensland Law Society and government lawyers
• liaising with the Society about the needs of government
lawyers and assisting it to respond to those needs
• participating in the national government lawyers’ forum
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• promoting excellence in the practice of government law
• promoting closer professional relationships between
government lawyers
• acting as spokesperson for Queensland’s government
lawyers.
Background
Over the past eleven years the Section has focused on
ensuring the availability of Continuing Legal Education
seminars of particular interest to government lawyers. It
has ensured that the Society’s annual Symposium caters
for the interests of government lawyers and has arranged
conferences designed to meet the needs of government
lawyers. It has also arranged regular speakers of interest to
both public and private sector lawyers in order to promote
networks between public and private sector lawyers.
International Law/Relations Section
The International Law/Relations Section deals with
developments in international law and relations with
associations of legal practitioners in other countries.
The Section met five times during 2006/07.
During the course of 2006/07, the Section considered and
contributed to the following submissions:
• to the Lord Mayor of Brisbane concerning Brisbane’s
Sister City relationships in Japan (23 August 2006)
• to Mr Tim Bugg, President of the Law Council of Australia,
concerning the decision of the International Court of
Justice re Serbia and the Convention on Genocide (1 May
2007)
Meetings
• to the President of the Law Society of Fiji concerning
support for the Fiji Society after the LAWASIA mission
(2 May 2007).
The Section met six times during 2006/07.
Some of the most notable work of the Section included:
Government lawyers’ conference
The Section assisted in the organisation of the 2007 annual
Government Lawyers’ Conference which was held in April.
Approximately 100 delegates from both the public and
private sector attended the conference and feedback was
very positive. Plans for the 2008 conference are currently
underway.
Promoting the benefits of membership of the
Society to government lawyers
An associate membership package for government lawyers
has been developed by the Society in 2006, and the Section
has been involved in encouraging and promoting this
initiative to potential members within government.
The Section continues to liaise with other Sections and
Committees as arranged by the Society. The Section also
continues to assist in identifying and progressing issues
impacting on government lawyers.
Fiona FitzPatrick
Chair
Decision of the International Court of Justice
– Convention on the Prevention and Punishment
of the Crime of Genocide
The Section prepared, on behalf of the Society,
correspondence to the President of the Law Council of
Australia concerning the decision of the International Court
of Justice in the matter of Application of the Convention on
the Prevention and Punishment of the Crime of Genocide
(Bosnia and Herzegovina v Serbia and Montenegro).
The Society requested the Law Council to urge the
Australian Government to express its support of the decision
and to convey to the Serbian Government its strong
belief that it comply with the formal order of the court and
surrender the Bosnian Serb General Ratko Mladic who is
alleged to have directed the Srebrenica genocide.
Support for the Law Society of Fiji
The Section also prepared on behalf of the Society
correspondence to the President of the Fiji Law Society
expressing the support of the Queensland Law Society to
its sister body. The correspondence noted the even-handed,
comprehensive and diplomatic assessment made by the
recent LAWASIA mission of the unhappy situation presently
in Fiji and offered the Fiji Law Society whatever moral or
practical assistance would be of benefit.
The Section has been ably led by Associate Professor
Jennifer Corin who has recently stepped down as chair.
Russell Thirgood
Chair
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Litigation Rules Section
The Litigation and Rules Section is chaired by Mr Peter
Eardley of Eardley Motteram, Brisbane.
• provision of advice to the Council concerning the issue as
to whether the process of assessing costs is legal work
within the definition of the Legal Practitioners Act
The Section deals with developments in the law relating to
litigation and rules of practice within the legal profession.
• preparation for Council of submissions to the Government
concerning cost assessments
At the annual review of membership of the Section, Messrs
McBride, Hunter and Splatt were replaced by Messrs
McDonnell, Russo and Mesdames Payne and Hauff.
• preparation of submissions to the Council as to the
response requested by the Government concerning
the investigation into the methodology of legal costs as
commissioned by the New South Wales Government and
in contemplation of parallel legislation in Queensland
The chair wishes to express thanks and appreciation to the
former members of the Section, whose contributions to the
work of the Section was greatly appreciated.
The Litigation and Rules Section met six times during
2006/07.
In addition to formal meetings, there was frequent exchange
of opinion, comment and drafting conducted by email
communication to facilitate the work of the Section.
The Section has been involved in a number of important
activities:
• the continued preparation and dissemination of
information in Proctor and in QLS Update concerning
cases involving practice, procedure and costs. The chair
particularly wishes to thank Sheryl Jackson for her high
standard of maintenance of Proctor articles. Mr Paul
Garrett, assisted by Mr Roger Quick, provided guidance
to the profession with respect to the decision of Casey v
Quabba
• there was significant liaison throughout the year involving
the Chief Justice, Justices of the Commercial List and
Justices of the Rules Committee with respect to advocacy
for reform of the methodology of cost assessment, rule
changes and issues of practical administration of the
Uniform Civil Procedure Rules (UCPR)
• provision of advice to the Society on the implications of
litigation funding
• advice to the Society with respect to the issue of a right of
audience to non-lawyers in minor debt claims
• provision of advice to the Council with respect to the
Australian Law Reform Commission in its enquiry into
legal professional privilege
• preparation of a detailed submission to the Government
and the Supreme Court for changes to the methodology
of taking affidavits of evidence for witnesses overseas
• liaison with the commercial judges with respect to fast
tracking of proposed costs disputes.
Messrs Garratt and Deane prepared extensive education
material for distribution to the profession concerning the cost
aspects of the Legal Profession Act and its implication. They
are also in the process of providing seminar presentations.
During the course of 2006/07, the Litigation Rules
Section also considered and contributed to the following
submissions:
• to Justice Williams AO for the Rules Committee
concerning s4 of the Supreme Court Act 1995 (17 July 2006)
• to the Attorney-General and Chief Justice concerning
client agreements and the effects of Casey v Quabba
(21 September 2006)
• to the Attorney-General concerning the appointment of
cost assessors pursuant to the Legal Profession Act and
the Supreme Court Act (7 June 2007)
• to the chair of the Supreme Court Rules Committee
concerning a proposed new scheme for the appointment
of cost assessors (7 June 2007).
A series of special awards were the highlight
of the festive season on 8 December 2006,
when they were presented at the Christmas
drinks function of QLS president Joe Pinder.
Leading the list was the president of the Court
of Appeal, Justice Margaret McMurdo, who
received the Agnes McWhinney Award for
2006. The 2006 President’s Awards were
presented to four practitioners: Gail Maskiell,
Roy Dickenson, John Taylor, and Tricia
Schmidt (pictured with her award).
60 79th
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www.qls.com.au
Section/
Committee reports
Some of the most notable work of the Section included:
Challenges to Client Agreements
The Section prepared, on behalf of the Society, submissions
to the Attorney-General and the Chief Justice of Queensland
concerning the effect of the decision of the Court of Appeal
in Casey v Quabba & Anor [2006] QCA 187 on third-party
challenges to client agreements.
This advocacy follows on from the article by Paul Garrett
and Roger Quick in the October 2006 edition of Proctor
highlighting the consequences which flow from the decision
in Casey and, in particular, uncertain reach of the expansion
of the locus standi of a non-party to a client agreement to
challenge its validity.
Peter Eardley
Chair
Practice Development
and Management Section
The Practice Development and Management Section is
chaired by Mr Ian Berry, Solicitor of Ipswich.
This Section has the continued responsibility to assist
members of small practices, defined as a self practitioner or
a practice consisting of four or less partners.
The advantage of this Section has increased by the diversity
of its Section members. The perspectives of geography,
levels of specialisation, partnership size and composition,
gender and age are all relevantly represented. The members
devoted their time not only in the mid-week meeting but on
a weekend for the planning strategies and, in particular, the
retirement seminar.
At the outset Section members decided that information
gathering was a vital part of the Section’s strategic plan. Our
survey results ascertained the extent to which members
had exit or retirement plans in place. The response from
our members was particularly encouraging. I believe the
seminar was well received.
The Section has found other issues which as expected will
be of major significance to our members. These include
staff shortages and retention, mentoring, human relations,
technology, and business operations and finance.
The Section’s future is underpinned by the perennial goal
of assisting members to support other members where
needed, balancing life, and building more profitable
businesses.
The continuing strategy is for the Practice Development and
Management Section to interact with other societies and
associations with a view to establishing links, understanding
trends and exchanging ideas.
Ian Berry
Chair
your society
Equalising opportunities
in the law Committee
The Equalising Opportunities in the Law Committee is a
Committee of the Practice Development and Management
Section. The Committee is chaired by Ms Terry Hutchinson
who is a Senior Lecturer at the Queensland University of
Technology.
The Committee is primarily concerned with the promotion
of equal opportunity within legislation, the law, and the legal
structure in general.
Highlights of 2006/07
The Equalising Opportunities in the Law Committee met
four times during 2006/07, generally holding meetings on
a bimonthly basis. The Committee focused its work on the
Employer of Choice Award and working on publicising the
results and report from the 2003 membership survey on
equity and diversity in the legal workplace.
Employer of Choice Awards
The chair of the EOL Committee, along with the QLS
President, is primarily responsible for evaluating the
nominees and deciding the recipient of the annual Employer
of Choice Award.
Each year the awards are advertised in Proctor and normally
these are presented during the annual QLS Symposium.
The 2006 award was presented to Hopgood Ganim Lawyers.
LawLink
The EOL Committee has organised three successful
LawLink programs, with the first being conducted in 2003.
The aims of the Indigenous Law Students Liaison Program
(LawLink) are ‘to enable Aboriginal and Torres Strait Islander
students to gain some familiarity with different arms of the
legal profession, the various types of work solicitors do, and
to strengthen the students’ networks with members of the
legal profession’.
The 2006 program included students from three Brisbane
universities: Queensland University of Technology, Griffith
University and the University of Queensland. Students took
part in sessions at Mullins Lawyers, Clayton Utz and Mr Dan
O’Gorman’s chambers. Students were also hosted to a tour
of the Magistrates Courts by the Chief Magistrate Marshall
Irwin, the Deputy Magistrate Brian Hyne, and Magistrates
Rick Sarre and Jacqui Payne.
2003 Membership Survey and Report
In December 2006, the EOL Committee submitted
the final report and recommendations from the 2003 membership survey on equity and diversity in the legal
workplace. The QLS Council has since tasked the
Committee with developing a proposal for carrying out the
recommendations.
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reports
In 2007, the Committee submitted a request for a Legal
Practitioner Interest on Trust Account Fund grant to further
examine the issues raised in the 2003 survey. Although the
Committee did not receive a LPITAF grant, they will continue
to seek funding to conduct further research on equity and
diversity in the legal workplace.
Model conduct rules
The Committee continues to work towards amending the
Legal Profession Act to include specific material or rulings
relating to discrimination, sexual harassment or workplace
bullying designed to reflect the current law and to stress
the importance, not only of protecting solicitors in their
workplaces, but also protecting and respecting the rights of
clients and third-parties.
Terry Hutchinson
Chair
Property and Development Law Section
The Property and Development Law Section is chaired by Mr
Paul Newman, of Allens Arthur Robinson, Brisbane.
The Property and Development Law Section of Queensland
Law Society deals with all developments in the law relating
to commercial and residential property.
The Construction and Infrastructure Law Committee and
Planning and Environment Law Committee also form part of
the Section.
The Section met nine times during 2006/07.
During the course of 2006/07, the Property and
Development Law Section considered and contributed to
the following submissions:
• to the National Electronic Conveyancing Office
concerning NECS consultation (19 October 2006)
• to the Registrar of Titles concerning QLS involvement in
NECS (19 October 2006)
• to the chairman of the Property Law Reform Alliance
concerning representation on the Alliance (3 November
2006)
• to the National chairman of the Australian Property Law
Group concerning a harmonious system of Torrens Title
(6 November 2006)
• to the Risk Assessment Consultancy for NECS conducted
by Clayton Utz concerning their initial stakeholder
package (21 November 2006)
• to the Commissioner for State Revenue concerning
practitioner concerns with regard to in-house stamping of
documents and counter-stamping (13 December 2006)
• to the Risk Assessment Consultancy for NECS conducted
by Clayton Utz concerning their second stakeholder
package (22 December 2006)
• to the Registrar of Titles concerning comments on the
new form 24 design (23 February 2007)
• to the Department of Natural Resources and Water
concerning the timeliness of lodgement and quality of
data of form 24s (23 February 2007)
• to the REIQ regarding the variation of the standard form
residential conveyancing contract (8 March 2007)
• to the Commonwealth Bank of Australia concerning
problems with mortgage discharges (28 March 2007)
• to Westpac concerning problems with mortgage
discharges (28 March 2007)
• to the Bank of Queensland concerning problems with
mortgage discharges (28 March 2007)
• to Suncorp Metway Bank concerning problems with
mortgage discharges (28 March 2007)
• to the National Australia Bank concerning problems with
mortgage discharges (28 March 2007)
• to St George Bank of Australia concerning problems with
mortgage discharges (28 March 2007)
• to the Commissioner of State Revenue concerning
certifying original documents in First Home Owner’s
Grant (FHOG) applications (2 May 2007)
• to the REIQ concerning updated versions of the Houses
and Land and Residential Lots in a Community Title
Scheme (CTS) (7 June 2007).
62 79th
annual report
www.qls.com.au
Section/
Committee reports
Some of the significant work of the Section included:
Conveyancing – Mortgage Discharge Delays
After an informative and comprehensive consultation
with members at the end of 2006, the Property and
Development Law Section prepared, on behalf of the
Society, correspondence to the major banks explaining
the difficulties presently faced by Queensland practitioners
in arranging the discharges of mortgages in cottage
conveyancing.
In its submissions, the Society set out the difficulties
faced by Queensland practitioners in effecting ‘time of the
essence’ 30 day settlements when mortgage discharge lead
times are up to 20 days.
Additionally, the Society drew the financial institutions’
attention to circumstances reported where members’ clients
have obtained discharge documentation from branch
offices, only for the solicitor to be informed that out-of-date
forms have been supplied, that new forms must be used,
and that the discharge lead time will start afresh.
As a result of these difficulties, the Society has called for
financial institutions to ensure that discharges are completed
within five to ten days, except in exceptional circumstances
The Society also called for the financial institution branch
staff to be properly trained to ensure that correct forms and
procedures are adhered to when a client seeks discharge of
their mortgage directly with the institution.
National Electronic Conveyancing System
(NECS)
The Section formed a subcommittee to review, and further
progress, the involvement of the Society in the National
Electronic Conveyancing System (NECS).
The Section prepared, on behalf of the Society,
correspondence to the National Electronic Conveyancing
Office and the Queensland Registrar of Titles. These letters
concerned the Society’s role in the important formative
stages of the NECS project and pointed out certain issues
of concern held by Queensland practitioners, especially with
regard to ‘time of the essence’ conveyancing and issues
effecting electronic funds transfers from trust accounts.
The Section also prepared, on behalf of the Society, a
submission to the NECS risk assessment consultancy,
which is currently identifying and developing strategies
to deal with the risks inherent in the national electronic
conveyancing system.
The submission made comment on many of the risks
identified in the present operating model of the NECS
system. The Section strongly recommended against liability
loss arising from system faults being borne by practitioners
and other system users.
your society
The Section, the QLS Legal and Policy department and
Lexon prepared, on behalf of the Society, a submission
to the second Consultation Package of the NECS Risk
Assessment Consultancy addressing many of the treatment
options for the various risks proposed.
Variation of Standard Form REIQ Cottage
Conveyancing Contracts
In collaboration with the Real Estate Institute of Queensland
(REIQ), the Section sent correspondence to initiate a review
of the current terms of the standard form REIQ Cottage
Conveyancing Contract.
A subcommittee from the Section met with representatives
of the REIQ to deal with a list of matters collated by the
Society for variation to the Contract.
In developing the revised versions of the Contracts, the
Section’s representatives raised many issues with the REIQ
on behalf of members.
The updated version 6 of the REIQ Houses and Law
Contract and version 2 of the REIQ Residential Lots
in a Community Titles Scheme Contract have several
amendments, including provisions for declarations
regarding the installation of smoke alarms, as required by
legislation from 1 July 2007.
Conveyancing – Form 24 – Timeliness of
Lodgement and Quality of Data
The Section prepared, on behalf of the Society, a response
to the Department of Natural Resources and Water
addressing DNRW’s concerns about the late lodgement
and errors present in conveyancing Form 24s lodged by
Queensland legal practices.
The Department provided statistics that between July and
October 2006:
• 12.4 percent of Form 24s received from solicitor’s firms
were lodged more than 30 days after possession of the
property had been exchanged, and
• 8.07 percent of Form 24s received from solicitor’s firms
contained errors identified by the Department’s data entry
area.
If an improvement was not evident, the Department
proposed initiating an increase in fines for late lodgement
of forms or failing to respond to a requisition from the Titles
Registry.
The Society, in its response, argued against any imposition
of increased fines and agreed to make members aware of
their obligations to lodge Form 24 conveyancing documents
with the Titles Registry in a timely manner.
queensland law society 2006/07 63
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First Home Owner’s Grant Guidelines and
Certified Copies of Contracts of Sale
The Section prepared, on behalf of the Society, a
submission to the Commissioner of State Revenue with
respect to the present documentary requirements in the
First Home Owner’s Grant Guidelines. In the submission
the Society highlighted present confusion about whether
certified copies of paper originals must be supplied in
support of a grant application when a contract is formed
under the Property Agents and Motor Dealers Act 2000 by
electronic means (either fax or email).
Counter Lodgement of Forms for In-house
Stampers
The Section prepared for the Society correspondence to the
Office of State Revenue (OSR) advising of difficulties faced
by certain practitioners, authorised to be in-house stampers
for duties purposes, being refused the ability to lodge forms
over the counter at certain OSR offices.
The Society noted the difficulties in certain cases where
a practitioner’s duties to their client are at odds with
obligations to OSR and called for some flexibility for selfassessors to file documents at an OSR office, if necessary.
Paul Newman
Chair
Construction and infrastructure Committee
The Construction and Infrastructure Committee is a
Committee of the Property and Development Law Section.
The Committee is chaired by Mr Ross Williams of Ebsworth
& Ebsworth, Brisbane.
Some of the most notable work of the Committee included:
Review of Building and Construction Industry
Payments Act
The Society wrote to the Minister for Public Works, Housing
and Information and Communication Technology seeking
to provide the views of the Society’s members to any
amendment of the Building and Construction Industry
Payments Act.
The Society is especially interested in the addition to the
scope of the Act of construction contracts where a resident
owner is a party to the contract and the work relates to the
building where the resident lives.
Planning and Environment Committee
The Planning and Environment Committee is a Committee of
the Property and Development Law Section. The Committee
is chaired by Mr Russell Bowie of Minter Ellison, Brisbane.
The Planning and Environment Committee operated virtual
consultations during 2006/07, which involved members
considering and contributing electronically to submissions:
• to the Department for Local Government, Planning and
Sport concerning the review of the Integrated Planning Act
(6 November 2006)
• to the Department of Justice concerning the draft
Guideline for the use of Penalty Infringement Notices
(PINs) under the Integrated Planning Act 1997 (10 May
2007).
Some of the most notable work of the Committee included:
The Construction and Infrastructure Committee met four
times during 2006/07 and:
Guidelines for use of Infringement Notices
under the Integrated Planning Act
• provided feedback on the operation of recently
introduced legislation relating to the Building and
Construction Industry Payments Act
The Business Law Section and the Planning and
Environment Law Committee prepared, on behalf of the
Society, a response to the Department of Local Government,
Planning, Sport and Recreation concerning proposed
Guidelines for the use of PINs under the Integrated Planning
Act.
• participated and contributed to CLE updates on
construction law
• members assisted the QLS Authorised Nominating
Authority (ANA) in an internal review of adjudicator
decisions which had been nominated by the Society.
In addition to holding discussions concerning the ongoing
training and monitoring of adjudicators under the ANA,
and general ANA updates, the Committee considered and
contributed to a submission to the Minister for Public Works
concerning the review of the Building and Construction
Industry Payments Act 2006 (5 March 2007).
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In its submission the Society addressed the proposed
use of PINs as multiple penalties being applied to the
one offence, the efficacy of using PINs to enforce more
serious enforcement orders, and a possible scalability of
penalty given the size of the corporate entity committing the
contravention.
www.qls.com.au
Section/
Committee reports
Integrated Planning Act and Integrated
Development Assessment System Review
The Planning and Environment Law Committee prepared,
on behalf of the Society, a detailed submission to the review
of the Integrated Planning Act 1997 (IPA) and the Integrated
Development Assessment System.
The Society supported the need for a review of the IPA and
offered its assistance in checking and making suggestions
on any subsequent draft amending provisions.
While commenting on a number of the issues raised in the
discussion paper, the Society noted that the level of detail
about the scope of certain proposals was brief and it was
difficult to ascertain exactly what reforms were intended.
On this basis, the Society called for a further consultative
step between the discussion paper and any amending
legislation in order to better identify the full scope of any
changes and to permit a full analysis of alternatives for
addressing those issues to be undertaken.
Amongst other issues identified in the discussion paper
the submission specifically addressed designations for
community infrastructure and planning, and development
certificates.
Succession Law Section
The Succession Law Section is chaired by Dr John de Groot
of de Groots Wills & Estate Lawyers, Brisbane.
The Section deals with developments in the law relating
to the distribution of property on a person’s death and
issues associated with the practice of this branch of law
in Queensland, in light of the ongoing work of the Uniform
Succession Laws Project.
During the course of 2006/07 the QLS Succession Law
Section met three times and considered and contributed
to a submission to the Attorney-General concerning the
Uniform Succession Laws Project (Family Provision) aspects
(8 November 2006).
The submission expressed concern that:
• an appropriate examination of existing social and
legal factors should be considered against any model
legislation
• a widening of the eligibility base for applicants may
magnify the departure from the original purpose of the
family provision legislation
• the introduction of the concept of notional estate heavily
favoured applicants at the expense of respondent
beneficiaries
• forensic and investigative burdens created by the
provisions had the potential to increase administration
costs for estates.
In addition, the submission particularly addressed the
concept of notional estate orders with respect to life
insurance and superannuation.
John de Groot
Chair
Young Lawyers Section
The Young Lawyers Section was chaired by Petrina
Pozzebon of McCullough Robertson in 2006/07.
The Section aims to identify and contribute to, the alleviation
of, issues affecting young lawyers in Queensland.
The primary avenues used by the Section to support young
lawyers are education and interaction with peers.
The Section is actively involved in determining the structure
and content of the Young Lawyers CLE series and, where
possible, contributes educational materials to the Regional
CLE and Schools and Community Education Service
(SCES) programs.
The Section also seeks to promote social networking
functions for young lawyers so they can meet and discuss
issues concerning their practice of law.
Uniform Succession Laws Project – Family
Provision
The Section prepared, on behalf of the Society, a
detailed submission to the Attorney-General on the 2004 supplementary report of the National Committee for Uniform
Succession Laws (relating to family provision).
Wills and Estates Lunch: QLS held a
wills and estates industry lunch at Law
Society House in May 2007. AttorneyGeneral and Minister for Justice Kerry
Shine spoke to guests about his
department’s work in the ongoing
uniform succession laws project.
Pictured are guests at the lunch.
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queensland law society 2006/07 65
District
law Associations
The Society represents the interests of the most
geographically widespread legal profession in Australia.
The vastness of Queensland has nurtured the growth
and strength of the District Law Associations. Their
enthusiastic involvement in local community activities and
their support in the Society’s efforts to inform and educate
Queenslanders of their rights and responsibilities under the
law, are of immense value.
Set out below are details of the current presidents of the
active District Law Associations in Queensland.
District law associations
Mackay District Law Association
Bundaberg Law Association
Mr Glen Krebs
Payne Butler Lang
PO Box 649
BUNDABERG 4670
Watling Fowler
Solicitors
PO Box 822
CABOOLTURE
4510
Central Queensland Law Association
Ms Paula Phelan
Rees R & Sydney
Jones
PO Box 83 ROCKHAMPTON
4700
Downs and South-West Law Association
Mrs Kym Briese
Briese Mahon
Lawyers
PO Box 1945 TOOWOOMBA
4350
Far North Queensland Law Association
Ms Nerida Wilson
The Law Office
S R Wallace and
Wallace
PO Box 1927
CAIRNS 4870
Mr Michael Coe
Michael Coe
Carswell &
Company
PO Box 3341
HERVEY BAY 4655
Ms Deanne
Drummond
Farrellys
Peter Roche &
Associates
PO Box 5001
GLADSTONE 4680
Ms Jayne Cox
L A Evans Solicitor
Skuse & Co
Mr James Blanch
Blanch Towers
Lawyers
Neilson Stanton &
Parkinson
South Burnett Law Association
Mr Chris Campbell
66 79th
annual report
Brown & Baker
South Burnett
Lawyers
PO Box 235 KINGAROY 4610
Southern District Law Association
Mr Bryan Mitchell
Mitchells Solicitors
& Business
Advisors
PO Box 95 MOOROOKA 4105
Sunshine Coast Law Association
PO Box 356
GYMPIE 4570
Townsville District Law Association
Ipswich and District Law Association
Ms Vanessa Brown
PO Box 192
DECEPTION BAY
4508
PO Box 331
MUDGEERABA
4213
Gympie Law Association
Mr Stephen
Manthey
PO Box 311
MOUNT ISA DC
4825
Redcliffe Pine Rivers District Law
Association
Gold Coast Law Association
Mr Ted Skuse
PO Box 604 CAIRNS 4870
North West Law Association
Gladstone Law Association
Mr Tony Appleton
PO Box 3255 STAFFORD DC
4053
North Queensland Law Association
Fraser Coast Law AssociatioN
Ms Kellie Grainger
PO Box 733 MACKAY 4740
North Brisbane Lawyers’ Association
Caboolture Law Association
Mr Kurt Fowler
Mr Rohan Coburn
Miss Michelle
Beatty
Mr Patrick Sutton
McAlister & Cartmill
Mackey & Wales
PO Box 75 COOLUM BEACH
4573
PO Box 6080
TOWNSVILLE 4810
PO Box 499
IPSWICH 4305
www.qls.com.au
Senior counsellors
Senior counsellors are experienced practitioners available to
advise a practitioner on any professional or ethical problem.
Some of the areas where a senior counsellor may be able to
assist include:
• advice on a professional or ethical problem
• career advice on options such as employment and
partnership offers
• whether to report a particular situation to the Society
• whether a notification should be made to a professional
indemnity insurer
• acting as an intermediary between the Society and a
practitioner wishing to remain anonymous.
Communication between a practitioner and a senior
counsellor attracts the same degree of confidentiality as
communications between a solicitor and client.
Set out below are details of the senior counsellors and their
locations for 2006/07.
Senior counsellors
name
firm
address
J D Fitzgerald
Biggs Fitzgerald
Pike
The Bank Building 823 Gympie Road Chermside
4032
F M FitzPatrick
Office of Fair
Trading
State Law Building 50 Ann
Street Brisbane 4000
R V Forgione
Forgione Lawyers
Central Park Chambers 188
Algester Road Algester 4115
G C Fox
Fox Bradfield
Lawyers
Level 3 K-Tower Cnr Wickham
& Ballow Streets Fortitude
Valley 4006
A P F Ghusn
Macrossan &
Amiet
55 Gordon Street Mackay
4740
H C Grant
Grant & Simpson
226 Quay Street
Rockhampton City 4700
C O Harkness
Wilson/Ryan/
Grose
Level 1 15 Sturt Street
Townsville 4810
G J Hutchinson
Cooke &
Hutchinson
19 Redcliffe Parade Redcliffe
4020
V N Jackson
South & Geldard
128 Victoria Parade
Rockhampton 4700
W G Jones
Jones Mitchell
Lawyers
56 Davenport Street Southport
4215
J P Kelly
Corrs Chambers
Westgarth
Levels 34 & 35 Waterfront
Place 1 Eagle Street Brisbane
4000
G E Klein
Public Trustee of
Queensland
12th Floor 444 Queen Street
Brisbane 4000
M O Klug
Clayton Utz
Level 28 Riparian Plaza 71
Eagle Street Brisbane 4000
name
firm
address
J R Byrne
James Byrne &
Rudz
102 Adelaide Street Brisbane
4000
R B Attwood
Richard Attwood
2/114 Pacific Parade Bilinga
4225
R C Barnes
Hickey Lawyers
Corporate Centre One Cnr
Bundall Road & Slatyer
Avenue Bundall 4217
F J Liston
Lilley Grose &
Long
34 Main Street Atherton 4883
A MacGillivray AM
Lex MacGillivray
Connolly
Schirmer & Batts
6 William Street Rockhampton
4700
Ground Level 193 North Quay
Brisbane 4000
P G B Mackey
Mackey & Wales
Ruddy Tomlins &
Baxter
126 Young Street Ayr 4807
150 Walker Street Townsville
4810
J G Mann AM
MacDonnells Law
Cnr Shields & Grafton Streets
Cairns 4870
McCullough
Robertson
Level 11 Central Plaza Two 66
Eagle Street Brisbane 4000
G P D Maskiell
Maskiells
First Floor 15 Ann Street
Nambour 4560
Cnr East & Annie Streets
Caboolture 4510
N D Maxwell
Maxwell &
McMeniman
33 Guy Street Toowoomba
4370
A R Batts
B J Baxter
R J Beer
M D Bray
Bradley & Bray
P D Carne
Queensland Law
Society
Law Society House 179 Ann
Street Brisbane 4000
P E M McCafferty
J D Carroll
WHD Lawyers
Level 12 145 Eagle Street
Brisbane 4000
Stacks/Northern
Rivers
Level 1 32 The Esplanade
Paradise Point 4216
M A Miller
Quinlan Miller &
Treston
Level 32 239 George Street
Brisbane 4000
G A Murphy AM
MurphySchmidt
130 Mary Street Brisbane
4000
M B Conroy
Conroy &
Associates
Suite 13 Toowong Terraces
31 Sherwood Road Toowong
4066
P L Cooper
Cooper Grace
Ward
Level 23 Central Plaza Two 66
Eagle Street Brisbane 4000
J A Nagel
John Nagel & Co.
Cnr Logan Road & Selborne
St Mount Gravatt 4122
C C Endicott
Macrossans
Lawyers
Level 23 AMP Place 10 Eagle
Street Brisbane 4000
G R Neilson
Neilson Stanton &
Parkinson
236 Mary Street Gympie 4570
A L English
Bottoms English
Ground Floor 10 Grafton
Street Cairns 4870
P G Nolan
217 North Quay Brisbane
4000
P M Fallu
Dale & Fallu
142 Brisbane Street Ipswich
4305
Queensland
Police Union of
Employees
T A Nulty
DLA Phillips Fox
Level 13 Waterfront Place 1
Eagle Street Brisbane 4000
G W Ferguson
your society
Ferguson Cannon
Level 1 17 Southern Drive
Caboolture 4558
queensland law society 2006/07 67
Senior Counsellors
name
firm
address
name
firm
address
T P O’Gorman AM
Robertson
O’Gorman
Cnr Herschel Street & North
Quay Brisbane 4000
J L Shaw
Swanwick Murray
Roche
74 Victoria Parade
Rockhampton 4700
J F O’Sullivan
Laherty &
O’Sullivan
PO Box 1360 Toowoomba
4350
G R Smith
Mellick Smith &
Associates
1st Floor 32 Sheridan Street
Cairns 4870
G C Paterson
Macrossan &
Amiet
55 Gordon Street Mackay
4740
D P Spence
Thynne &
Macartney
Level 27 Comalco Place 12
Creek Street Brisbane 4000
R G Perrett
Clayton Utz
Level 28 Riparian Plaza 71
Eagle Street Brisbane 4000
T M Sullivan
Davidson &
Sullivan
160 Hume Street Toowoomba
4350
W M Potts
Price &
Roobottom
44 Davenport Street Southport
4215
J C Taylor
Taylors Solicitors
Level 2 17 Brisbane Street
Mackay 4740
W T Purcell
Purcell Chadwick
& Skelly
Level 10 141 Queen (Cnr
Albert) Street Brisbane 4000
C A Trevor
Chris Trevor and
Associates
62 Goondoon Street
Gladstone 4680
M P Quinn
Gilshenan &
Luton
Level 13 259 Queen Street
Brisbane 4000
V J Vandeleur
Vandeleur & Todd
35 Rankin Street Innisfail 4860
G J Vickery AM
Deacons
R J Reaston
Reaston Lawyers
4/161 Aumuller Street Cairns
4870
Level 17 175 Eagle Street
Brisbane 4000
K M Walker
Walkers
M O Richardson
Cartwrights
Tebbett &
Ostwald
First Floor ‘Noosa Central’ 6
Bottlebrush Avenue Noosa
Heads 4567
327A Margaret Street
Toowoomba 4350
T W Young
Carswell &
Company
192 Bazaar Street
Maryborough 4650
J C Ryan
John Ryan & Co
Suite 4 Business Centre
121 Shute Harbour Road
Cannonvale 4802
R Zande
Richard Zande &
Associates
49 Ellenborough Street
Ipswich 4305
D G Searles
Deacons
Level 17 175 Eagle Street
Brisbane 4000
68 79th
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www.qls.com.au
FINANCIAL STATEMENTS
Financial Statements
qUEENSLAND lAW sOCIETY iNCORPORATED
your society
69
70
LEGAL PRACTITIONERS FIDELITY GUARANTEE FUND
102
LAW CLAIMS LEVY FUND
113
queensland law society 2006/07 69
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Income Statement
for the year ended 30 June 2007
Consolidated
NOTE
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
Revenue
Membership and Practitioners Fees
7
Department of Justice Grant
5,431,775
4,542,916
5,431,775
4,542,916
2,264,828
2,740,922
2,264,828
2,740,922
Rent and Administration Revenue
8
451,956
589,233
720,689
589,233
Membership Services and Events
9
3,172,422
4,287,027
3,172,422
4,287,027
16,277,903
8,012,464
506,756
1,051,060
679,953
781,599
679,953
781,599
3,777,867
617,338
–
–
25,890,000
24,100,764
–
–
214,766
227,000
214,766
227,000
–
–
–
2,125,362
58,161,470
45,899,263
12,991,189
16,345,119
10
12,392,742
12,195,279
9,727,066
10,922,910
Membership Services and Events
9
1,549,207
1,809,813
1,549,207
1,809,813
Council and Committee Costs
11
618,890
645,820
618,890
645,820
527,305
446,797
527,305
446,797
Investment Income
Commissions and Funding
Claims Handling Fee Release
Insurance Premiums, Levies and Deductibles
Other Income
Revaluation of Shares Previously Written down
Total Revenue
Expenses
Administration Expenses
Law Council Capitation Fees
4,881,000
5,456,667
–
–
Claims Paid
12
10,786,941
12,336,477
–
–
Reinsurance Costs
Movement in Outstanding Claims
12
(2,487,260)
18,059,880
–
–
Claims Handling Expense
12
3,438,000
623,375
–
–
Movement in Reinsurance Recoveries
12
5,674,661
(14,256,661)
–
–
Reinsurance Recoveries Received
12
(727,624)
–
–
–
Brokerage Fees
150,000
140,000
–
–
Total Expenses
36,803,862
37,457,447
12,422,468
13,825,340
Operating Surplus before Income Tax
21,357,608
8,441,816
568,721
2,519,779
(4,534,923)
(495,631)
–
–
16,822,685
7,946,185
568,721
2,519,779
Income Tax Expense
Operating Surplus after Income Tax
24
The accompanying notes form part of these statements.
70 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Balance Sheet
as at 30 June 2007
Consolidated
NOTE
Parent Entity
2007
2006
2007
2006
$
$
$
$
Current Assets
Cash and Cash Equivalents
Receivables and Prepayments
22(a)
13
Total Current Assets
61,609,648
56,043,381
15,532,858
37,238,571
1,763,912
2,608,099
1,380,000
2,091,499
63,373,560
58,651,480
16,912,858
39,330,070
Non-Current Assets
Investment in Lexon Insurance Pte Ltd
5
–
–
9,000,000
9,000,000
Other Financial Assets
6
84,418,387
67,092,193
–
–
Property, Plant and Equipment
15
14,530,806
13,568,350
14,486,021
13,453,354
Insurance Contract Liabilities Ceded
12
8,582,000
14,256,661
–
–
Total Non-Current Assets
107,531,193
94,917,204
23,486,021
22,453,354
TOTAL ASSETS
170,904,753
153,568,684
40,398,879
61,783,424
Current Liabilities
Payables
14
36,406,043
39,149,583
10,752,368
34,052,063
Current Income Tax Liabilities
24
3,650,359
1,233,149
–
–
–
103,214
–
–
Solicitors’ Deductibles
Accrued Employee Benefits
18
520,097
433,275
471,083
433,275
Provision for Outstanding Claims
12
13,139,102
14,749,704
–
–
53,715,601
55,668,925
11,223,451
34,485,338
Total Current Liabilities
Non-Current Liabilities
Accrued Employee Benefits
18
433,332
410,019
431,858
410,019
Deferred Income Tax Liability
25
1,440,647
1,318,650
–
–
Provision for Outstanding Claims
12
51,079,000
48,414,444
–
–
52,952,979
50,143,113
431,858
410,019
106,668,580
105,812,038
11,655,309
34,895,357
64,236,173
47,756,646
28,743,570
26,888,067
49,807,840
32,985,155
17,483,022
16,914,301
14,428,333
14,771,491
11,260,548
9,973,766
64,236,173
47,756,646
28,743,570
26,888,067
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Retained Surpluses
Reserves
TOTAL EQUITY
16
The accompanying notes form part of these statements.
your society
queensland law society 2006/07 71
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Statement of Changes in Equity
for the year ended 30 June 2007
Parent Entity
NOTE
Opening Balance – 1 May 2005
Asset Revaluation
Reserve
Fair Value Reserve
Retained Profits
TOTAL
$
$
$
$
6,091,891
–
14,394,522
20,486,413
–
–
394,417
394,417
Operating Surplus for the period
Revaluation of Investment in Lexon Insurance Pte Ltd
Revaluation of Strata Title Building
Closing Balance – 30 June 2006
16
–
–
2,125,362
2,125,362
3,881,875
–
–
3,881,875
9,973,766
–
16,914,301
26,888,067
–
–
568,721
568,721
1,286,782
–
–
1,286,782
11,260,548
–
17,483,022
28,743,570
2006/2007
Operating Surplus for the period
Revaluation of Strata Title Building
Closing Balance – 30 June 2007
Consolidated
16
NOTE
Opening Balance – 1 May 2005
Asset Revaluation
Reserve
Fair Value Reserve
Retained Profits
TOTAL
$
$
$
$
6,091,891
–
27,713,684
33,805,575
Profit for the Period
–
–
7,946,185
7,946,185
Effects of changes in accounting policies adjusted
–
1,869,500
(2,674,714)
(805,214)
Fair value movements on available for sale financial assets
–
4,183,179
–
4,183,179
Tax effect of fair value movements on available for sale
financial assets
–
(1,254,954)
–
(1,254,954)
3,881,875
–
–
3,881,875
9,973,766
4,797,725
32,985,155
47,756,646
Profit for the Period
–
–
16,822,685
16,822,685
Fair value movements on available for sale financial assets
–
(1,017,373)
Realised gains on available for sale financial assets
–
(1,311,113)
–
(1,311,113)
Tax effect of fair value movements on available for sale
financial assets
–
698,546
–
698,546
1,286,782
–
–
1,286,782
11,260,548
3,167,785
49,807,840
64,236,173
Revaluation of Strata Title Building
Closing Balance – 30 June 2006
16
Revaluation of Strata Title Building
Closing Balance – 30 June 2007
16
(1,017,373)
The accompanying notes form part of these statements.
72 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Cash Flow Statement
for the year ended 30 June 2007
Consolidated
NOTE
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
Cash Flows from Operating Activities
43,924,871
68,302,784
15,882,984
20,109,694
2,439,204
2,704,854
2,439,204
2,704,854
(18,891,567)
(20,317,900)
(16,523,948)
(18,000,485)
Receipts collected for Society entities
–
–
28,064,775
46,308,866
Payments to Society entities
–
–
(49,922,683)
(21,650,000)
Receipts collected for Legal Practitioners’ Fidelity Guarantee
Fund
2,270,234
3,734,216
2,270,234
3,734,216
Payments to Legal Practitioners’ Fidelity Guarantee Fund
(4,110,180)
(1,894,270)
(4,110,180)
(1,894,270)
727,624
–
–
–
(4,881,000)
(4,670,000)
–
–
(10,786,941)
(12,336,477)
2,433,451
3,408,084
1,007,518
974,750
–
–
(567,047)
–
24
(1,297,170)
–
–
–
22(c)
11,828,526
38,931,291
(21,459,143)
32,287,625
5,000,000
(44,000,000)
13,500,000
(19,000,000)
(262,259)
(229,461)
(246,570)
(99,117)
4,737,741
(44,229,461)
13,253,430
(19,099,117)
Receipts from the Profession
Receipts from Department of Justice
Payments to Suppliers and Employees
Reinsurance Recoveries
Reinsurance Payments
Claims and Claims Related Payments
Interest Received
Interest Paid
Income Tax Paid
Net Cash Provided by/(Used in) Operating Activities
Cash Flows from Investing Activities
Net Term Deposit Payments
Payments for Property, Plant and Equipment
15
Net Cash Provided by/(Used in) Investing Activities
16,566,267
(5,298,170)
(8,205,713)
13,188,508
Cash at the beginning of the Period
22(a)
37,043,381
42,341,551
18,238,571
5,050,063
Cash at the end of the Period
22(a)
53,609,648
37,043,381
10,032,858
18,238,571
Net Increase/(Decrease) in Cash held
The accompanying notes form part of these statements.
your society
queensland law society 2006/07 73
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
Notes
Scope of operation
The Queensland Law Society Incorporated (‘the Society’) is the professional association for solicitors in Queensland and is incorporated under the
Legal Profession Act 2004 (‘the Act’). While the Society is defined as a statutory body under the Financial Administration and Audit Act 1977, it remains an
independent professional body, subject to the governance of its elected Council.
These accounts include the Society, other funds and subsidiaries and when combined are referred to as ‘the Group’.
The Group is responsible for issuing of practicing certificates, providing continuing legal education, investigating complaints of unsatisfactory professional
conduct against solicitors, administering funds under the control of the Group, providing services and support to members and the general public and
providing general insurance and services as licensed under the Singapore Insurance Act. Major sources of income for the Society include annual fees paid
by its members, contributions from the Department of Justice and Attorney-General, continuing legal education to the profession, investment income, and
Insurance Premiums.
1
Summary of significant accounting policies
The significant accounting policies which have been adopted in the preparation of the Group’s financial statements are:
(a)
Basis of accounting
The financial report is a General Purpose Financial Report which has been prepared in accordance with the Australian Equivalents to
International Financial Reporting Standards (AeIFRS), the Financial Administration and Audit Act 1977, Financial Management Standards 1997,
and other authoritative pronouncements.
The financial report has also been prepared on the basis of historical cost and except where stated does not take into account changing
money values. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period
and amounts in the report have been rounded to the nearest dollar.
(b)
The reporting entity
The financial statements include the values of all revenues, expenses, assets, liabilities and equity of the Society and the entities that it
controls where they are material.
The Society controlled the following entities at reporting date:
Law Claims Levy Fund
This Fund was wholly controlled for the whole period.
Lexon Insurance Pte Ltd (formerly QLS Insurance Pte Ltd)
This Company was established on 23 June 2001 in Singapore and is 100% owned by the Society. This Company was wholly controlled for
the whole period.
(c)
Principles of consolidation
The financial statements of controlled entities are included in the consolidated financial statements from the date control commences to the
date control ceases. In the process of reporting the Society as a single economic entity, unrealised gains and losses, inter-entity balances
resulting from transactions with or between controlled entities are eliminated on consolidation where material. The accounting policies have
been consistently applied by each entity in the consolidated entity.
(d)
Taxation
The Society has been granted exemption from income tax by the Australian Taxation Office (ATO) per s24AK of the Income Tax Assessment
Act 1936 with the exception of Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses and assets are
recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the ATO. In these circumstances,
the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the
amount of GST included.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet. Cash flows are
included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing activities and financing
activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
Lexon Insurance Pte Ltd (formerly QLS Insurance Pte Ltd) is registered in Australia for income tax and GST. The company has dual tax
residency in Australia and Singapore. In relation to offshore insurance business, the Company has been granted tax exempt status for
a period of ten years from 17 February 2006 to 16 February 2016 under the tax exemption scheme for captive insurers by the Monetary
Authority of Singapore.
Current income tax liabilities for current and prior periods are recognised at the amounts expected to be paid to the tax authorities, using the
tax rates (and tax laws) that have been enacted or substantially enacted by the balance sheet date.
Deferred income tax assets/liabilities are recognised for all deductible/taxable temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements except when the deferred income tax assets/liabilities arise from the
initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither
accounting nor taxable profit or loss.
Deferred income tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the temporary
differences can be utilised.
74 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(d)
Taxation (continued)
Deferred income tax assets and liabilities are measured at:
(i)
the tax rates that are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is
settled, based on tax rates (and tax laws) that have been enacted or substantially enacted by the balance sheet date; and
(ii)
the tax consequence that would follow from the manner in which the Company expects, at the balance sheet date, to recover or
settle the carrying amounts of its assets and liabilities.
Current and deferred income tax are recognised as income or expenses in the income statement for the period, except to the extent that the
tax arises from a transaction which is recognised directly in equity. Deferred tax on temporary differences arising from the fair value gains and
losses on available-for-sale financial assets and cash flow hedges are charged or credited directly to equity in the same period the temporary
differences arise.
(e)
Revenue recognition
(i)
Premium income
Premium income is recognised as revenue at the commencement of the risk period covered by the policy and accrued
proportionally over the period of coverage.
(ii)
Interest income
Interest income is accrued on a time-proportion basis using the effective interest method.
(iii)
Other income
Revenues are recognised at fair value of the consideration received net of any amount of GST payable to the ATO. Practitioner Fees
are recognised when payment is received. Interest revenue is recognised as it accrues, taking into account the effective yield on
the financial asset and is also recognised net of bank charges. Premium revenue is recognised in the financial statements at the
commencement of the risk period covered by the policies.
(iv)
Grants and other contributions
Grants, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which the Society obtains
control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding
arrangement.
(v)
Recovery of expenditure
Under the rules of the Act, certain operating expenses of the Society are recoverable from the Legal Practitioners’ Fidelity
Guarantee Fund. The gross amounts recovered are disclosed as income. Expenses incurred on behalf of the Fund form part of the
administration expenses incurred by the Society.
(vi)
Insurance contracts
Contracts under which the Group accepts significant insurance risk from another party (the policyholder) by agreeing to compensate
the policyholder or other beneficiary if a specified uncertain future event (the insured event) adversely affects the policyholder or
other beneficiary are classified as insurance contracts.
(f)
Operating leases
Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating
leases. Payments made under operating leases (net of any incentives received from the lessor) are taken to the income statement on a
straight-line basis over the period of the lease. When an operating lease is terminated before the lease period has expired, any payment
required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place.
(g)
Cash and cash equivalents
For the purposes of the Balance Sheet and Cash Flow Statement, cash assets include all cash and cheques receipted but not banked
at 30 June as well as deposits on call with financial institutions. The Cash Deposit Account is an interest bearing account which is readily
convertible to cash on hand at the Society’s option.
(h)
Receivables
All receivables are carried at actual amounts and the collectability of trade debtors is assessed at reporting date and a specific provision is
made for any doubtful accounts.
your society
queensland law society 2006/07 75
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(i)
Reinsurance contracts
Contracts entered into by the Group with reinsurers under which the Group is compensated for losses on one or more contracts issued by
the Group where significant insurance risk is transferred are classified as reinsurance contracts.
The benefits to which the Group is entitled under its reinsurance contracts are recognised as reinsurer’s share of insurance liabilities. These
assets consist of short-term balances due from reinsurers as well as longer term receivables that are dependent on the expected recovery.
Reinsurance liabilities are primarily premiums payable for reinsurance contracts and are recognised as expenses when due.
The Group assesses its reinsurance assets for impairment at each balance sheet date. Such assets are deemed impaired if there is objective
evidence, as a result of an event that occurred after its initial recognition, that the Group may not recover all amounts due and that the event
has a reliably measurable impact on the amount that the Group will receive from the reinsurer.
The Group ceded reinsurance in the normal course of business for the purpose of limiting its net loss potential through the diversification of
its risks. Reinsurance arrangements do not relieve the Group from its direct obligations to its policyholders.
(j)
Investments
(i)
Recognition and derecognition
Purchases and sales of investments are recognised on trade-date – the date on which the Group commits to purchase or sell the
asset. Other financial assets are recognised when there is a contractual right to receive cash or financial assets; or to exchange
financial instruments with another enterprise.
Investments are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred
and the Group has transferred substantially all risks and rewards of ownership.
(ii)
Initial measurement
Investments are initially recognised at fair value plus transaction costs.
(iii)
Subsequent measurement
Investment assets are subsequently carried at fair value. Loans and receivables are carried at amortised cost using the effective
interest method.
Unrealised gains and losses arising from changes in the fair value of investments are recognised in the fair value reserve within
equity. When investments are sold or impaired, the accumulated fair value adjustments in the fair value reserve within equity are
included in the income statement.
(iv)
Determination of fair value
The fair values of quoted investments are based on investment intermediaries’ quotes at the balance sheet date. The carrying
amounts of current receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for
disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available
to the Group for similar investments.
(v)
Impairment
The Group assesses at each balance sheet date whether there is objective evidence that an investment or a group of investments
is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated
future cash flows, discounted at the original effective interest rate. The amount of the allowance is recognised in the income
statement.
In the case of equity investments classified as investments, a significant or prolonged decline in the fair value of the investments
below their cost is considered in determining whether the investments are impaired. If any such evidence exists for investments,
the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss
on that investment previously recognised in profit or loss – is removed from the fair value reserve within equity and recognised in
the income statement. Impairment losses recognised in the income statement on equity investments are not reversed through the
income statement, until the equity investments are disposed of.
(k)
Property, plant and equipment
(i)
Acquisition of assets
All assets acquired are recorded at their cost of acquisition at the date of acquisition, being the fair value of the consideration
provided plus incidental costs directly attributable to the acquisition. All assets acquired are expensed unless the initial cost exceeds
$5,000. All library acquisitions are expensed in the year of purchase.
The Society has followed the Queensland Treasury guidelines in relation to intangible assets and as such expenses all software
purchases less than $100,000.
76 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(ii)
Impairment of non-current assets
All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of
possible impairment exists, the entity determines the asset’s recoverable amount. Any amount by which the asset’s carrying amount
exceeds the recoverable amount is recorded as an impairment loss.
The asset’s recoverable amount is determined as the higher of the asset’s fair value less costs to sell and depreciated replacement
cost.
An impairment loss is recognised immediately in the income statement, unless the asset is carried at a revalued amount. When the
asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation reserve of the relevant class to
the extent available.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as
income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation
increase.
(iii)
Depreciation
All assets including strata title buildings have limited useful lives and are depreciated using the straight line method over their
estimated useful lives, taking into account estimated residual values.
Assets are depreciated from the date of acquisition. Any expenditure that increases the originally assessed capacity or service
potential of an asset is capitalised and the new depreciable amount depreciated over the remaining useful life of the asset.
Depreciation rates and methods are reviewed annually for appropriateness. When changes are made, adjustments are reflected
prospectively in current and future periods only.
The depreciation rates used for each class of asset are as follows:
2007
2006
Asset Class
2.5%
2.5%
Plant and Equipment
5%–33%
5%–33%
Computer Equipment
33%–100%
33%–100%
Strata Title Building
(iv)
Revaluations
The strata title building is measured at fair value and is independently revalued every five years to ensure the carrying amount does
not materially differ from the fair value at reporting date. In between independent valuations, the Society uses the Implicit Price
Deflator for non-residential buildings indices to index the carrying amount of the building where there has been a material variation
in the index. Revaluation increments are recognised in the asset revaluation reserve except where amounts reversing a decrement
previously recognised as an expense are recognised as revenues. Revaluation decrements are only offset against revaluation
increments and any excess is recognised as an expense.
(l)
Insurance liabilities
Insurance liabilities comprise of outstanding claims provision and unearned premiums provision.
(i)
Outstanding claims provision
Full provision is made for the estimated cost of all claims admitted or intimated but not settled at the balance sheet date, less
reinsurance recoveries, using the best information available at that time.
In addition, provision is made for claims incurred but not reported (‘IBNR’) at the date of the balance sheet based on claims
experience and industry statistics.
(ii)
Unearned premiums provision
The portion of premiums that relates to unexpired risk at the balance sheet date is reported as the unearned premium liability.
Unearned premiums are calculated based on the 1/365 method applied to the net premiums written for the financial year.
(iii)
Liability adequacy test
At each balance sheet date, liability adequacy test is performed to ensure the adequacy of the contract liability. In performing this
test, current estimates of future contractual cash flows and claims handling and administration expenses, as well as investment
income from assets backing such liabilities, are used. Any deficiency is immediately charged to general insurance revenue account
by establishing a provision for losses arising from liability adequacy tests.
(m)
Solicitors’ deductibles
Solicitors’ Deductibles represent an excess which has been charged to solicitors in accordance with the Master Policy agreement. These
monies are accounted for as a current liability at balance date and are used to make future payments on files when costs are determined.
your society
queensland law society 2006/07 77
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(n)
Payables
Trade creditors are recognised on receipt of the goods or services and are carried at actual amounts, gross of applicable trade and other
discounts. Amounts are unsecured and are generally settled on 30 day terms.
(o)
Provisions
A provision is recognised when there is a legal, equitable or constructive obligation as a result of a past event and it is probable that a future
sacrifice of economic benefits will be required to settle the obligation, the timing or amount of which is uncertain.
(p)
Employee benefits
(i)
Annual leave
Current annual leave entitlements represent present obligations resulting from services provided by employees up to balance date,
calculated at undiscounted amounts based on remuneration rates that the entity expects to pay as at reporting date including related
on-costs, such as, employer superannuation contributions, workers compensation insurance and payroll tax.
(ii)
Sick leave
Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected
to recur in future periods and therefore it is unlikely that existing accumulated entitlements will be used by employees and no liability
for unused sick leave entitlements is recognised.
(iii)
Long service leave
The provision for employee benefits to long service leave represents the present value of the estimated future cash outflows to be
made resulting from employees’ services provided to reporting date.
The provision is calculated using expected future increases in remuneration rates including related on-costs and is based on
experience of employee departure per year of service. Long service leave expected to be paid in the next 12 months is recorded as a
current liability in the Balance Sheet. Long service leave expected to be paid later than one year is recorded as a non-current liability
and is discounted using the Commonwealth Bond rate at the reporting date which most closely matches the terms of maturity of the
related liabilities.
(q)
Foreign currency
Foreign currency transactions are translated to Australian currency at the rate of exchange ruling at the dates of the transactions. Amounts
receivable and payable in foreign currencies at reporting date are translated at the rates of exchange ruling on that date. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in
foreign currencies are recognised in the Income Statement.
(r)
Legal Profession Act 2004
The Legal Profession Act 2004 (Qld) came into effect on 25 May 2004. The provisions contained within the Act cover a range of matters
including the establishment of the Legal Services Commission, Legal Practice Tribunal and Committee and the Legal Practitioners’
Admissions Board, together with a number of technical measures including those relating to transitional provisions to facilitate the transfer to
the new legislation.
Under the new Act, the Legal Practitioners’ Fidelity Guarantee Fund was required to transfer its main operations of administration of
disciplinary matters, audit of solicitors’ trust accounts and receivership of solicitors’ trust accounts to the Society. This change resulted
in the Society receiving a share of trust account interest each year from the Legal Practitioner Interest on Trust Accounts Fund which was
established under s208 of the Act and is administered by the Department of Justice and Attorney-General.
(s)
Issuance of financial statements
The financial statements are authorised for issue by the Council of the Queensland Law Society Inc at the date of signing the management
certificate.
(t)
New and revised accounting standards
Disclosure is required when initial application of an Australian Accounting Standard has an effect on the current period or any prior period,
would have such an effect, except that it is impracticable to determine the amount of the adjustment, or might have an effect on future
periods.
In the current year, the Society had adopted all of the new and revised Standards and Interpretations that are relevant to its operations and
effective for 2006/07 reporting period. The adoption of these new and revised Standards and Interpretations has resulted in a change to the
Society’s accounting policies in relation to financial guarantee contracts.
The AASB released AASB 2005-9 Amendments to Australian Accounting Standards [AASB 4, AASB 1023, AASB 139 and AASB 132] in
September 2005. AASB 2005-9 amends AASB 139 Financial Instruments: Recognition and Measurement to require certain financial
guarantee contracts to be recognised in accordance with AASB 139 and measured initially at their fair values, and subsequently measured
at the higher of the amount recognised as a provision and the amount initially recognised less cumulative amortisation in accordance with
revenue recognition policies.
Disclosure is required when a new Australian Accounting Standard which has been issued but is not yet effective has not been applied.
78 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(t)
New and revised accounting standards (continued)
The Society cannot adopt a new accounting standard ahead of the specified commencement date unless approval is obtained from
Treasury. The Treasurer mandated the early adoption of AASB 7 Financial Instruments: Disclosures in the 2005/06 financial year. No additional
standards have been early adopted in 2006-07. Consequently, the Society has not applied the other Australian Accounting Standards and
AASB and UIG Interpretations that have been issued but are not yet effective. These will be applied from their operative date.
At the date of authorisation of the financial report, the following Standards and Interpretations had been issued/revised but were not yet
effective:
Operative for reporting
periods beginning on/after
AASB 1: First-time Adoption of Australian Equivalents to International Financial Reporting Standards
1 January 2008
AASB 2: Share-based Payment
1 March 2007
AASB 4: Insurance Contracts
1 January 2007
AASB 8: Operating Segments
1 January 2009
AASB 101: Presentation of Financial Statements
1 January 2007
AASB 114: Segment Reporting
1 January 2007
AASB 117: Leases
28 February 2007
AASB 118: Revenue
28 February 2007
AASB 120: Accounting for Government Grants and Disclosure of Government Assistance
28 February 2007
AASB 121: The Effects of Changes in Foreign Exchange Rates
28 February 2007
AASB 127: Consolidated and Separate Financial Statements
28 February 2007
AASB 131: Interests in Joint Ventures 28 February 2007
28 February 2007
AASB 132: Financial Instruments: Presentation
1 January 2007
AASB 133: Earnings per Share
1 January 2007
AASB 139: Financial Instruments: Recognition and Measurement
28 February 2007
AASB 1023: General Insurance Contracts
1 January 2007
AASB 1038: Life Insurance Contracts
1 January 2007
AASB 1048: Interpretation and Application of Standards
31 March 2007
AASB 1049: Financial Reporting of General Government Sectors by Governments
1 July 2008
AASB 2007-1: Amendments to Australian Accounting Standards arising from AASB Interpretation 11
[AASB 2]
1 March 2007
AASB 2007-2: Amendments to Australian Accounting Standards arising from AASB Interpretation 12
[AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127, AASB 131 and AASB 139]
28 February 2007
1 January 2008
AASB 2007-3:Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6,
AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 and AASB 1038]
1 January 2009
Interpretation 4: Determining whether an Arrangement contains a Lease [revised]
1 January 2008
Interpretation 10: Interim Financial Reporting and Impairment
1 November 2006
Interpretation 11: AASB 2 – Group and Treasury Share Transactions
1 March 2007
Interpretation 12: Service Concession Arrangements
1 January 2008
Interpretation 129: Disclosure – Service Concession Arrangements [revised]
1 January 2008
It is anticipated that the above Standards and Interpretations are either not applicable to the Society or adoption of them in future periods will
have no material financial impact on the Society’s financial statements.
your society
queensland law society 2006/07 79
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
2
Change of financial year
During 2006 the Society altered its financial year for accounting purposes from 30 April to 30 June each year. The Society has adopted the whole-ofGovernment financial period ended 30 June, which is consistent with the Financial Administration and Audit Act 1977. The Society has undertaken
this by adopting a 14 month reporting period, from 1 May 2005 to 30 June 2006, and will then continue to operate under the standard 12 month
reporting period.
As a result, the financial statements of the reporting entity to 30 June 2006 reflect 14 months trading as opposed to the usual 12 months disclosed in
the 2006-07 year.
3
Critical accounting estimates and judgements in applying accounting policies
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related
actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.
Management has considered the development, selection and disclosure of the Group’s critical accounting policies and estimates and the application
of these policies and estimates. Certain critical accounting judgements in applying the Group’s accounting policies are related to the policyholder
claims.
(a)
Actuarial methodology for estimate for policyholder claims
The Group’s estimates for reported and unreported losses and establishing resulting provisions and related reinsurance recoverables are
continually reviewed and updated, and adjustments resulting from this review are reflected in the income statement. The process relies upon
the use of external advisers (lawyers, actuaries and loss adjustors) and the assumption that past experience is an appropriate basis for
predicting future events.
In estimating the outstanding claims liability, projected future claims payments are discounted to the calculation date for each claim year.
The projected future claims payments for each claim year are based on the claim estimates and an allowance for the development of claims
(Incurred But Not Enough Reported – IBNER) especially for the recent claim years in respect of which limited claims information is available
and estimates are therefore the most subjective; and an allowance for accident cases, which had incurred but have not yet been reported
(Incurred But Not Reported – IBNR).
The IBNER and IBNR estimate has been calculated using a combination of the Incurred Claims Development (‘ICD’) and BornhuetterFerguson (‘BF’) methods.
(b)
Key assumptions
The following key valuation assumptions have been used to estimate future projected payments and outstanding claims liabilities:
•
The ICD basis allows for 10% development beyond the ninth development half-year.
•
The average cost per solicitor (used in the BF method) adopted is $5,250 for underwriting years with a $7,500 deductible and $4,750
for underwriting years with a $15,000 deductible.
•
We allow for 3% development in claim numbers beyond the ninth development half-year.
•
We have assumed reinsurance recoveries will be fully recoverable on a prompt basis.
•
We have applied the zero-coupon yield for Commonwealth Government bonds to the expected future cashflows. This has resulted in
a uniform discount rate of 6.4%.
•
We have assumed future inflation will be the same as past inflation, to the extent that it has been captured by the claims development
data.
•
We have used market benchmarks to include an allowance of claims handling expenses (‘CHE’).
•
While we have calculated a central estimate, we have applied a risk margin at a 90% level of sufficiency to gain comfort with the
adequacy of reserves.
There have been no significant changes in the business underwritten by the Company or the way the insurance liabilities are estimated. As
such no significant amendments have been made to the assumptions.
(c)
Sensitivity analysis of key estimates
While the gross ultimate costs are sensitive to valuation assumptions, the net results are much less sensitive due to the aggregate limits that
apply.
The net impacts on our estimated total provision due to changes in assumptions are:
•
4
Reserve underestimation: If our estimated reserves on the 2003/2004 year (the only year not to have reached the aggregate limit)
deteriorated by 20% then the total provision would increase by $1.0 million or 1.8%.
•
Discount rate: A percentage point increase in discount rate (from 6.4% to 7.4%) would reduce our provision by $1.1 million or 2.1%.
•
CHE: A percentage point increase in our allowance for CHE would increase our estimated provision by $0.6 million or 1.1%.
Management of insurance and financial risk
A subsidiary, Lexon Insurance Pte Ltd is a captive insurer and issues a single insurance contract to its holding corporation that transfers insurance
risks of its holding corporation to itself. This section summarises these risks and the way the Company manages them.
80 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(a)
Insurance risk
The risk under any one insurance contract is the possibility that the insured event occurs and the uncertainty of the amount of the resulting
claim. By the very nature of an insurance contract, this risk is random and therefore unpredictable.
The primary insurance activity carried out by the entity assumes the risk of loss from persons that are directly subject to the risk – professional
indemnity liability. Such risk may relate to liability that may arise from an insurable event. As such, the entity is exposed to the uncertainty
surrounding the timing and severity of claims under the contract. The entity also has exposure to market risk through its insurance and
investment activities.
The entity manages its insurance risk through underwriting guidelines, centralised management of reinsurance and monitoring of emerging
issues.
(i)
Underwriting strategy
The entity is unable to provide a diversified portfolio of similar risks due to its licensing arrangement. The entity currently only
underwrites the risk of its holding corporation. Such a focus on one ‘insured’ group does create a wider variability of outcome than a
balanced portfolio.
(ii)
Reinsurance strategy
In considering the purchase of reinsurance protection, the entity’s philosophy is twofold, namely:
•
To reduce risk, and
•
To stabilise solvency.
To achieve such objectives, the entity will consider the placing of reinsurance protection at appropriate levels with reinsurance
carriers of a proven financial record. Specific reinsurance placements should reflect the appropriate balance between retention and
reinsurance commensurate with the nature and complexity of the risk, all within acceptable exposure limits to the entity.
Ceded reinsurance contains credit risk, and such reinsurance recoverables are reported after known deductions for insolvencies
and uncollectible items. The entity monitors the financial condition of reinsurers on an ongoing basis and reviews its reinsurance
arrangements periodically. The entity’s Board of Directors are responsible for setting the minimum security criteria for acceptable
reinsurance.
(iii)
Terms and conditions of insurance contracts
The terms and conditions of insurance contracts that have a material effect on the amount, timing and uncertainty of future cash
flows arising from insurance contracts are set out below.
The following gives an assessment of the entity’s main product – professional indemnity liability and the ways in which it manages
the associated risks.
(A)
Product features
The entity writes professional indemnity liability and under these contracts, monetary compensation awards are paid for any
description of civil liability whatsoever incurred in connection with the Law Practice.
Professional indemnity liability is generally considered a long tail line, as it takes a relatively long period of time to finalise
and settle claims for a given accident year. The speed of claim reporting and claim settlement is a function of the specific
coverage provided, the jurisdiction and specific policy provisions.
This line is typically the largest source of uncertainty regarding claims provisions. Major contributors to this provision
estimate uncertainty include the reporting lag, the number of parties involved in the underlying action, the potential amounts
involved and whether such claims were reasonably foreseeable and intended to be covered at the time the contracts were
written. Claims with longer reporting lag will result in greater inherent risk.
(B)
Management of risks
The key risks associated with this product are underwriting risk and claims experience risk.
Underwriting risk includes the risk of higher claims costs than expected owing to the random nature of claims and their
frequency and severity and the risk of change in legal or economic conditions or behavioural patterns affecting reinsurance
pricing and conditions of reinsurance cover. This may result in the entity having either too little premium for the risks it has
agreed to underwrite and hence, has not enough funds to invest and pay claims, or that claims are in excess of those
expected.
your society
queensland law society 2006/07 81
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(B)
Management of risks (continued)
Claims development history – Lexon Insurance Pte Ltd and Law Claims Levy Fund
Underwriting year
2003
2004
2005
2006
2007
Total
$
$
$
$
$
$
Estimate of ultimate claims
costs:
Gross
– at end of reporting year
13,446,822
15,416,970
15,323,519
19,628,276
18,112,366
– one year later
16,481,580
15,416,970
23,328,538
19,750,704
–
– two years later
19,683,274
15,742,681
19,117,187
–
–
– three years later
21,504,755
13,358,594
–
–
–
– four years later
18,233,147
–
–
–
–
Current estimate of cumulative
claims
18,233,147
13,358,594
19,117,187
19,750,704
18,112,366
88,571,998
Cumulative payments to date
(12,621,147)
(7,439,594)
(7,885,187)
(2,901,704)
(698,366)
(31,545,998)
5,612,000
5,919,000
11,232,000
16,849,000
17,414,000
57,026,0008
Liability recognised in the
balance sheet
Liability in respect of prior
years
3,754,102
Provision for claims handling
3,438,000
Total outstanding claims
included in the balance
sheet
64,218,102
Net
– at end of reporting year
13,446,822
15,416,970
15,323,519
15,558,636
15,417,366
– one year later
16,481,580
15,416,970
16,721,504
16,166,704
–
– two years later
19,683,274
15,742,682
17,205,187
–
–
– three years later
17,924,768
13,358,594
–
–
–
– four years later
17,842,147
–
–
–
–
17,842,147
13,358,594
17,205,187
16,166,704
15,417,366
79,989,998
(12,621,147)
(7,439,594)
(7,885,187)
(2,901,704)
(698,366)
(31,545,998)
5,221,000
5,919,000
9,320,000
13,265,000
14,719,000
48,444,000
Current estimate of cumulative
claims
Cumulative payments to date
Liability recognised in the
balance sheet
Liability in respect of prior
years
3,754,102
Provision for claims handling
3,438,000
Total outstanding claims
included in the balance
sheet (note 12)
55,636,102
Insurance risk is managed primarily through sensible pricing, product design, appropriate investment strategy and
reinsurance. The entity therefore monitors and reacts to changes in the general economic and commercial environment
in which it operates. The entity also assesses the need to minimise its underwriting risks by retaining part of the risks
underwritten for its own account and reinsuring the remainder.
82 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(b)
Reinsurance risk
The entity cedes insurance risk to limit exposure to underwriting losses under agreements that cover risks or group risks on yearly renewable
terms. These reinsurance agreements spread the risk and minimise the effect of losses. The amount of risk retained depends on the entity’s
evaluation of the risk. Under the terms of the reinsurance agreements, the reinsurer agrees to reimburse the ceded amount in the event the
claim is agreed and paid. However, the entity remains liable to its policyholders with respect to ceded insurance if any reinsurer fails to meet
the obligations it assumes.
When selecting a reinsurer, the entity considers their relative security. The security of the reinsurer is assessed from public rating information.
(c)
Concentration of risk
The concentration of insurance risk before and after reinsurance is solely in Australia.
(d)
Financial risk
The entity’s activities expose it to a variety of financial risks: foreign currency risk, cash flow and fair value interest rate risk, credit risk and
liquidity risk.
(i)
Foreign currency risk
The entity is not exposed to significant foreign currency risk in relation to its functional currency as the majority of the entity’s
transactions, assets and liabilities are denominated in Australian dollars.
(ii)
Cash flow and fair value interest rate risk
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market
interest rates. The entity’s exposure to market risk for changes in interest rate relates primarily to the entity’s cash deposits at bank.
(iii)
Credit risk
There is no significant credit risk with respect to the collectibility of premiums from its holding corporation despite that the entity
underwrites risks from its holding corporation. This is because all premiums are paid up front at the commencement of the period
covered under the insurance policy.
Credit risk arising on funds placed with external fund managers and on reinsurance activities is managed by established policies to
ensure that the counter-parties have adequate financial ratings and appropriate credit history.
(iv)
Liquidity risk
The entity’s ability to meet its short term funding obligations is managed by maintaining sufficient cash and bank deposits.
5
Investment in Lexon Insurance Pte Ltd (formerly QLS Insurance Pte Ltd)
In June 2001, Lexon Insurance Pte Ltd was incorporated in Singapore as the captive insurer of the Society. The company was capitalised with
$9,000,000 via surplus funds from the Society controlled Law Claims Levy Fund. The $9,000,000 share capital of the company is fully owned by the
Society and the company is a controlled entity of the Society.
6
Other financial assets – non-current
Consolidated
2007
$
Available-for-sale Financial Assets
84,418,387
Parent Entity
2006
2007
2006
$
$
$
67,092,193
–
–
Available-for-sale financial assets are recorded in accordance with note 1(j).
your society
queensland law society 2006/07 83
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
7
Membership and practitioner fees
Consolidated
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
Practising Certificate Fees
2,915,343
2,731,651
2,915,343
2,731,651
Member Fees
2,258,433
1,535,665
2,258,433
1,535,665
Certificate of Fitness
13,800
19,900
13,800
19,900
Late Application Levy
5,400
18,800
5,400
18,800
238,799
236,900
238,799
236,900
5,431,775
4,542,916
5,431,775
4,542,916
Corporate Marketing Levy
8
Parent Entity
Rent and administration revenue
Consolidated
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
–
–
268,733
–
Grants Fund
–
100,490
–
100,490
41,742
48,699
41,742
48,699
267,493
261,078
267,493
261,078
Rent
61,680
54,291
61,680
77,100
Car Parking
81,041
124,675
81,041
101,866
451,956
589,233
720,689
589,233
Legal Practitioners Admissions Board
79th
For the financial
year ended
30 June 2007
Management Fees
Legal Practitioners Fidelity Guarantee Fund
84 Parent Entity
For the financial
period from 1 May
2005 to 30 June
2006
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
9
Membership services and events
Consolidated
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
Income
328,222
494,836
328,222
494,836
82,800
55,904
82,800
55,904
221,074
230,408
221,074
230,408
1,170,142
1,469,725
1,170,142
1,469,725
College of Law Commission
193,352
164,321
193,352
164,321
Specialist Accreditation
235,282
275,790
235,282
275,790
Texts and Course Material
350,954
337,917
350,954
337,917
School and Student Services
38,465
55,946
38,465
55,946
Events and Functions
51,876
51,222
51,876
51,222
–
583,654
–
583,654
416,927
377,810
416,927
377,810
83,328
189,494
83,328
189,494
3,172,422
4,287,027
3,172,422
4,287,027
Practice Management Course
Publications
QLS Diary
Seminars
Membership Product and Services
Proctor Advertising and Subscription
Marketing and Sponsorship
Consolidated
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
Expenditure
Library Services Resources
189,799
328,023
189,799
328,023
Practice Management Course
189,644
85,456
164,644
85,456
QLS Diary
130,725
105,732
130,725
105,732
Seminars
451,522
517,257
451,522
517,257
5,914
59,013
5,914
59,013
16,119
15,173
16,119
15,173
BCIPA Seminars
Specialist Accreditation
96,390
98,434
96,390
98,434
School and Student Services
21,772
9,085
21,772
9,085
Events and Functions
24,772
52,683
24,772
52,683
Membership Product and Services
209,666
274,013
209,666
274,013
Proctor Expenses
191,668
263,535
191,668
263,535
21,216
1,409
21,216
1,409
1,549,207
1,809,813
1,549,207
1,809,813
Texts and Course Material
Marketing and Sponsorship
your society
queensland law society 2006/07 85
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
10
Administration expenses
Consolidated
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
Advertising
22,141
100,613
17,934
100,613
Actuarial fees
89,914
31,425
–
–
Audit fees
168,682
124,282
125,590
90,236
Bad debts
680
45,547
680
547
Captive management fee
70,000
81,667
–
–
Catering, functions and entertainment
43,769
38,005
40,236
38,005
2,424
19,369
2,424
19,369
71,920
46,140
9,813
34,809
127,486
121,334
103,693
117,317
75,000
60,000
–
–
5,000
14,000
5,000
14,000
Electricity
83,963
70,125
83,963
70,125
Fringe benefits tax
73,145
91,322
73,145
91,322
Fees and Charges
42,600
32,180
42,600
32,180
Insurance
218,602
216,121
157,393
216,121
Information technology and related costs
479,467
729,430
452,663
729,430
Investment fees
103,393
71,582
–
–
Investment managers fees
94,244
51,942
–
–
LAWASIA
75,000
100,000
75,000
100,000
Body corporate levies
328,899
232,887
328,899
232,887
Depreciation – strata title building
387,179
369,420
387,179
369,420
73,576
78,020
73,576
78,020
148,964
78,823
–
–
Motor vehicle expense
12,798
16,698
12,798
16,698
Offsite storage
46,485
40,333
46,485
40,333
276,177
325,957
276,177
325,957
Postage
79,489
110,500
73,554
110,500
Presentations and gifts
50,273
39,069
50,273
39,069
Provision for doubtful debts
157,500
–
–
–
Printing and Stationery
209,979
182,580
173,514
182,580
Professional and consulting fees
416,558
400,155
169,851
204,211
Registrations and subscriptions
88,049
56,818
59,681
56,818
231,582
127,626
231,582
127,626
6,634,076
6,775,756
5,633,187
6,419,705
53,271
–
–
–
Complaint investigations
Depreciation – computers
Depreciation – plant and equipment
Directors fees
District law association sponsorships
Law Society House:
Rates and taxes
Lease payments
Payroll tax
Repairs and maintenance
Salaries and wages
Secretarial fees
86 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
10
Administration expenses (continued)
Consolidated
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
Solicitors complaints tribunal
65,862
100,547
65,862
100,547
Staff – other costs
80,378
–
80,378
–
Staff advertising
20,676
12,960
20,676
12,960
Staff amenities
25,831
13,919
25,831
13,919
Staff training
46,041
37,505
46,041
37,505
111,314
175,583
53,017
89,103
596,072
574,666
503,874
574,666
Tax consulting
53,706
3,892
–
–
Taxis and couriers
22,580
21,499
22,580
21,499
Telephone
103,814
112,045
90,743
112,045
Travelling expenses
192,579
222,111
79,570
61,942
Trust account audits
31,604
40,826
31,604
40,826
12,392,742
12,195,279
9,727,066
10,922,910
Sundry expenses
Superannuation
11
Parent Entity
Council and committee costs
Consolidated
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
Travel and accommodation
222,472
276,871
222,472
276,871
Honorarium
266,444
261,668
266,444
261,668
–
4,315
–
4,315
129,974
102,966
129,974
102,966
618,890
645,820
618,890
645,820
Convocation
Catering and functions
your society
queensland law society 2006/07 87
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
12
Provision for outstanding claims
Consolidated
Parent Entity
2007
2006
2007
2006
$
$
$
$
Opening Gross Outstanding Claims
63,164,148
45,104,268
–
–
Claims Incurred
8,402,895
30,396,357
–
–
(10,786,941)
(12,336,477)
–
–
3,438,000
–
–
–
64,218,102
63,164,148
–
–
(14,256,661)
–
–
–
4,947,037
(14,256,661)
–
–
Reinsurance recoveries received
727,624
–
Closing Reinsurance Recoveries
(8,582,000)
(14,256,661)
–
–
Net Outstanding Claims
55,636,102
48,907,487
–
–
Claims Paid during the Year
Movement in Claims Handling Provision
Closing Gross Outstanding Claims
Opening Reinsurance Recoveries
Movement in Reinsurance Recoveries
Current Liability
13,139,102
14,749,704
–
–
Non-Current Liability
51,079,000
48,414,444
–
–
Non Current Recoveries
(8,582,000)
(14,256,661)
–
–
55,636,102
48,907,487
–
–
928,102
397,235
–
–
54,708,000
48,510,252
–
–
55,636,102
48,907,487
–
–
8,402,895
30,396,357
–
–
(10,786,941)
(12,336,477)
–
–
(103,214)
–
–
–
(2,487,260)
18,059,880
–
–
4,947,037
(14,256,661)
–
–
727,624
–
–
–
5,674,661
(14,256,661)
–
–
Law Claims Levy Fund
Lexon Insurance Pte Ltd
Movements in profit and loss account:
Outstanding Claims
Claims Incurred
Claims Paid during the Year
Solicitors deductible reversals
Reinsurance Recoveries
Movement in Reinsurance Recoveries
Recoveries Received during the Year
The Law Claims Levy Fund has stop loss insurance that capped the fund’s liability at $5,000,000 for payments made after 1 July 2002.
Lexon Insurance Pte Ltd has assessed its provisions for outstanding claims based upon an independent actuarial assessment as at 30 June 2007 by
Mr Andrew Cohen (FIAA) and Mr Kane Bolton (FIAA), of Finity Consulting Pty Ltd. The key assumptions are detailed in note 3.
88 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
13
Receivables and prepayments
Consolidated
Accounts Receivables
Less: Provision for Doubtful Debts
Prepaid Expenses and Other Receivables
14
Parent Entity
2007
2006
2007
2006
$
$
$
$
596,537
674,567
206,656
307,803
(157,500)
(366,764)
–
–
439,037
307,803
206,656
307,803
1,324,875
2,300,296
1,173,344
1,783,696
1,763,912
2,608,099
1,380,000
2,091,499
Payables
Consolidated
Creditors
Income in Advance
Other Payments and Accruals
Parent Entity
2007
2006
2007
2006
$
$
$
$
302,665
1,449,905
302,665
1,444,605
31,150,052
36,344,933
5,732,045
31,308,205
4,983,326
1,354,745
4,717,658
1,299,253
36,406,043
39,149,583
10,752,368
34,052,063
Income in advance relates primarily to receipts for Insurance, Membership Fees and Practicing Certificates received prior to year end during the
renewal period for the upcoming year.
15
Property, plant and equipment
Parent entity
2005/06
Strata Title
Building
Plant and
Equipment
Computer
Equipment
Total
$
$
$
$
Cost or valuation
At the beginning of the year
10,734,725
1,016,129
486,394
12,237,248
–
92,654
6,463
99,117
4,505,872
–
(127,670)
4,378,202
15,240,597
1,108,783
365,187
16,714,567
(1,307,689)
(491,748)
(327,662)
(2,127,099)
Charge for the year
(369,419)
(117,317)
(34,809)
(521,545)
Revaluations/other
(623,997)
–
11,428
(612,569)
At the end of the year
(2,301,105)
(609,065)
(351,043)
(3,261,213)
Net book value at 30 June 2006
12,939,492
499,718
14,144
13,453,354
Additions
Revaluations/other
At the end of the year
Depreciation
At the beginning of the year
your society
queensland law society 2006/07 89
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
15
Property, plant and equipment (continued)
Parent entity (continued)
2006/07
Strata Title
Building
Plant and
Equipment
Computer
Equipment
Total
$
$
$
$
Cost or valuation
15,240,597
1,108,783
365,187
16,714,567
246,570
–
–
246,570
1,557,058
–
–
1,557,058
17,044,225
1,108,783
365,187
18,518,195
(2,301,105)
(609,065)
(351,043)
(3,261,213)
Charge for the year
(387,179)
(103,693)
(9,813)
(500,685)
Revaluations/other
(270,276)
–
–
(270,276)
At the end of the year
(2,958,560)
(712,758)
(360,856)
(4,032,174)
Net book value at 30 June 2007
14,085,665
396,025
4,331
14,486,021
At the beginning of the year
Additions
Revaluations/other
At the end of the year
Depreciation
At the beginning of the year
Strata Title
Building
Plant and
Equipment
Computer
Equipment
Total
$
$
$
$
Property, plant and equipment is stated as follows:
30 June 2006
At valuation
At cost
Depreciation
15,240,597
–
–
15,240,597
–
1,108,783
365,187
1,473,970
15,240,597
1,108,783
365,187
16,714,567
(2,301,105)
(609,065)
(351,043)
(3,261,213)
12,939,492
499,718
14,144
13,453,354
17,044,225
–
–
17,044,225
–
1,108,783
365,187
1,473,970
30 June 2007
At valuation
At cost
Depreciation
90 79th
annual report
17,044,225
1,108,783
365,187
18,518,195
(2,958,560)
(712,758)
(360,856)
(4,032,174)
14,085,665
396,025
4,331
14,486,021
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
15
Property, plant and equipment (continued)
Consolidated
2005/06
Strata Title
Building
Plant and
Equipment
Computer
Equipment
Total
$
$
$
$
Cost or valuation
At the beginning of the year
10,734,725
1,016,129
486,394
12,237,248
–
155,009
74,452
229,461
4,505,872
–
(127,670)
4,378,202
15,240,597
1,171,138
433,176
16,844,911
(1,307,689)
(491,748)
(327,662)
(2,127,099)
Charge for the year
(369,419)
(121,334)
(46,140)
(536,893)
Revaluations/other
(623,997)
–
11,428
(612,569)
At the end of the year
(2,301,105)
(613,082)
(362,374)
(3,276,561)
Net book value at 30 June 2006
12,939,492
558,056
70,802
13,568,350
Additions
Revaluations/other
At the end of the year
Depreciation
At the beginning of the year
2006/07
Strata Title
Building
Plant and
Equipment
Computer
Equipment
Total
$
$
$
$
Cost or valuation
At the beginning of the year
15,240,597
1,171,138
433,176
16,844,911
246,570
10,240
5,449
262,259
1,557,058
–
–
1,557,058
17,044,225
1,181,378
438,625
18,664,228
(2,301,105)
(613,082)
(362,374)
(3,276,561)
Charge for the year
(387,179)
(127,486)
(71,920)
(586,585)
Revaluations/other
(270,276)
–
–
(270,276)
At the end of the year
(2,958,560)
(740,568)
(434,294)
(4,133,422)
Net book value at 30 June 2007
14,085,665
440,810
4,331
14,530,806
Additions
Revaluations/other
At the end of the year
Depreciation
At the beginning of the year
your society
queensland law society 2006/07 91
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
15
Property, plant and equipment (continued)
Consolidated (continued)
Strata Title
Building
Plant and
Equipment
Computer
Equipment
Total
$
$
$
$
Property, plant and equipment is stated as follows:
30 June 2006
At valuation
15,240,597
–
–
15,240,597
–
1,171,138
433,176
1,604,314
15,240,597
1,171,138
433,176
16,844,911
(2,301,105)
(613,082)
(362,374)
(3,276,561)
12,939,492
558,056
70,802
13,568,350
17,044,225
–
–
17,044,225
–
1,181,378
438,625
1,620,003
17,044,225
1,181,378
438,625
18,664,228
(2,958,560)
(740,568)
(434,294)
(4,133,422)
14,085,665
440,810
4,331
14,530,806
At cost
Depreciation
30 June 2007
At valuation
At cost
Depreciation
An independent valuation of the strata title building was carried out as at 31 December 2005 by Mr C R Guinare AAPI and was on the basis of the
open market value of Law Society House in vacant possession with all units combined. The building has been indexed from 30 December 2005 to
30 June 2007 using the Queensland non residential construction Index. The Council is of the opinion that this basis provides a reasonable estimate of
recoverable amount.
The Society has plant and equipment with an original cost of $755,976 and a written down value of zero still being used in the provision of services.
16
Reserves
Consolidated
Parent Entity
2007
2006
2007
2006
$
$
$
$
11,260,548
9,973,766
11,260,548
9,973,766
3,167,785
4,797,725
–
–
Retained Profits
49,807,840
32,985,155
17,483,022
16,914,301
Closing balance at end of year
64,236,173
47,756,646
28,743,570
26,888,067
Asset revaluation
Fair value
For details of the movements during the year, refer to the Statement of Changes in Equity.
17
Heal Street building – grants fund
Funds of $88,999 were received from the Grants Fund during 1988 to enable the purchase of a suitable property from which Caxton Legal Services
could continue to operate as a community legal service. While the Society has held title to this property, it has not been included in the accounts as
the Society derives no benefit from this asset and it has always been the intention to return to the Grants Funds (or successor) any proceeds derived
from holding it.
Subsequent to year end the Society has received approval from the Department of Justice and Attorney-General to transfer title to Caxton Legal
Services. This transfer will be done in the form of a gift.
92 79th
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
18
Accrued employee benefits
Consolidated
Parent Entity
2007
2006
2007
2006
$
$
$
$
Current
520,097
433,275
471,083
433,275
433,332
410,019
431,858
410,019
96
85
Provision for annual leave
Non-current
Provision for long service leave
Number of parent entity employees at year end
19
Commitments
(a)
Operating leases
Consolidated
(b)
Parent Entity
2007
2006
2007
2006
$
$
$
$
Within one year
135,414
133,668
1,909
1,648
One to five years
413,883
528,080
–
–
549,297
661,748
1,909
1,648
Capital leases
Capital expenditure contracted for at 30 June 2007 but not provided for was nil (2006 – nil).
20
Related party transactions
(a)
The following significant transactions took place between the Consolidated Group and related parties during the financial period on
commercial terms agreed by the parties concerned.
Management fees paid to parent entity
Gross premiums received by Lexon Insurance Pte Ltd
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
268,733
–
25,800,000
20,150,000
392,164
568,823
26,815
–
22,758
41,004
5,633
14,004
70,000
81,667
150,000
140,000
9,500
9,518
Professional fees paid to a firm of which a director is a member
Legal fees in the provision of claim defence costs:
– Coyne & Associates
– Flower & Hart
Other non claim professional advice provided:
– Coyne & Associates
– Flower & Hart
Management fees paid to a firm of which a director is a member
– AON Insurance Managers (Singapore) Pte Ltd
Brokerage fees paid to a firm of which a director is a member
– AON Re Australia Limited
Commissions derived from renewal of insurance policies
– R J Neville & Associates
your society
queensland law society 2006/07 93
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(b)
Key management personnel compensation (continued)
Consolidated
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
$
$
$
Directors Fees
Honorarium fees paid to President and Deputy
President
For the financial
period from 1 May
2005 to 30 June
2006
$
75,000
55,000
–
–
266,444
261,668
266,444
261,668
1,226,951
821,503
888,713
821,503
117,869
90,642
88,697
90,642
1,419,820
967,145
977,410
912,145
Other Officers:
– Salaries and other short term employment benefits
– Superannuation
The parent entity management personnel as at 30 June 2007 were:
Mr Peter Carne – Chief Executive Officer
Mr Bernie O’Donnell – Secretary
Mr Peter Lyons – Director of Membership and Corporate Services
Mr David Franklin – Director of Professional Standards
Mr Anthony Walduck – Director of Finance and Information Technology
Mr Malcolm Hinton – General Counsel
The consolidated results include the following Lexon Insurance Pte Ltd management personnel:
Mr Michael Young – Chief Executive Officer
Mr David Durham – Risk Manager
Mr Peter Worthy – Claims Manager
Ms Leisa Moffatt – Underwriting Manager
(c)
The following related party transactions were outstanding at the end of the year.
Management fees due to parent entity
2007
2006
$
$
123,733
Amounts due from Mr Robert Davis
10,828
Amounts due from Mr Joseph Pinder
15,396
–
–
The amounts due from Mr Robert Davis and Mr Joseph Pinder resulted from an ATO private ruling in relation to PAYG tax on Honorariums. As
a result of the ruling, agreements were reached with Mr Rob Davis and Mr Joseph Pinder for the repayment of $44,537 (being the net of PAYG
tax and superannuation adjustments), being $29,141 from Mr Robert Davis and $15,396 from Mr Joseph Pinder.
The adjustments were associated with honorarium payments to Mr Robert Davis of $90,000 in the period ending 30 June 2006 and $60,000
in the period ending 30 June 2007 (although the subsequent balance was accrued for in the 30 June 2006 financial statements) and Mr
Joseph Pinder of $50,000 in the period ending 30 June 2006.
Mr Robert Davis repaid $18,313 in June 2007 with the balance not due for payment until June 2008. Mr Joseph Pinder repaid his outstanding
balance in August 2007.
21
Contingent liabilities
All known insurance claims have been actuarially assessed and expected liabilities have been brought to account as Provision for Outstanding
Claims.
There are no other known contingent liabilities of a significant nature at balance date.
94 79th
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
22
Notes to the statement of cash flows
(a)
Reconciliation of cash
For the purposes of the cash flow statement, cash includes cash on hand and in banks and investments in money market instruments, net of
outstanding bank overdrafts. Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in
the balance sheet as follows:
Consolidated
(b)
Parent Entity
2007
2006
2007
2006
$
$
$
$
Cash at bank
28,067,361
861,194
862,315
795,969
Cash deposit accounts
25,542,287
36,182,187
9,170,543
17,442,602
Cash included in Cash Flow Statement
53,609,648
37,043,381
10,032,858
18,238,571
Term deposit
8,000,0000
19,000,000
5,500,000
19,000,000
Total Cash and Cash Equivalents
61,609,648
56,043,381
15,532,858
37,238,571
Financing facilities
The Society has no credit facility with any financial institution to meet any financing requirements.
(c)
Reconciliation of net cash provided by operating activities to the surplus/(deficit) for the year
Consolidated
Surplus/(deficiency) for the year
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
16,822,685
7,946,185
568,721
2,519,779
(13,654,680)
(4,726,208)
–
–
–
116,242
–
116,242
586,585
536,894
500,685
521,546
844,187
(767,196)
711,499
(757,694)
–
–
–
(2,125,362)
(2,693,051)
31,566,249
(47,248,296)
5,554,026
59,647
(39,724)
59,647
(39,724)
–
–
23,948,601
26,498,812
–
–
Adjustments for:
Investment income
Add/(less) non-cash items
Write-off of intangible software
Depreciation
Change in assets and liabilities
(Increase)/decrease in assets
Accounts receivables
Investment in Lexon Insurance Pte Ltd
Increase/(decrease) in liabilities
Accounts payables and unearned income
Employee benefits
Collections for society entities
6,728,614
3,803,218
Tax related balances
3,237,753
495,631
Solicitors deductibles
(103,214)
–
–
–
11,828,526
38,931,291
(21,459,143)
32,287,625
Provision for outstanding claims
Net cash provided by/(used in) operating activities
your society
queensland law society 2006/07 95
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
23
Financial Instruments
(a)
Interest rate risk exposure
The exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities, both recognised and
unrecognised at balance date are as follows:
Floating Interest Rate
Non Interest Bearing
Total Carrying Amount
Weighted Average Interest Rate
2007
2006
2007
2006
2007
2006
2007
2006
$’000
$’000
$’000
$’000
$’000
$’000
%
%
Financial assets
Current
Cash assets
–
–
28,067
861
28,067
861
–
–
Receivables
–
–
1,763
2,608
1,763
2,608
–
–
33,542
55,182
–
–
33,542
55,182
6.25
5.65
33,542
55,182
29,830
3,469
63,372
58,651
84,418
67,092
–
–
84,418
67,092
16.70
15.40
84,418
67,092
–
–
84,418
67,092
117,960
122,274
29,830
3,469
147,790
125,743
–
–
5,286
2,805
5,286
2,805
–
–
–
–
5,286
2,805
5,286
2,805
Other financial
assets
Non-current
Other financial
assets
Total financial
assets
Financial liabilities
Current
Payables
Total financial
liabilities
(b)
Credit risk exposure
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The credit risk on financial assets
of the consolidated entity which have been recognised on the balance sheet is the carrying amount of trade debtors, net of any provision for
doubtful debts. The Society considers that there are no concentrations of credit risk.
96 79th
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
24
Income tax
Consolidated
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
Tax expense attributable to profit is made up of:
Current income tax
Deferred income tax (Note 25)
3,786,727
1,233,149
–
–
789,201
(737,518)
–
–
4,575,928
495,631
(72,347)
–
–
–
31,342
–
–
–
4,534,923
495,631
–
–
(Over)/Under Provision in preceding financial years
Current income tax
Deferred income tax (Note 25)
Lexon Insurance Pte Ltd has dual tax residency in Australia and Singapore. In relation to offshore insurance business, the Company has been
granted tax exempt status for a period of ten years from 17 February 2006 to 16 February 2016 under the tax exemption scheme for captive insurers
by the Monetary Authority of Singapore.
The tax expense on profit differs from the amount that would arise using the Singapore standard tax rate due to the following:
The tax expense on profit differs from the amount that would arise using the standard tax rate due to the following:
Consolidated
Profit before tax
Tax calculated at a tax rate of 30% (2006: 30%)
Parent Entity
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
21,357,608
8,441,816
–
–
6,407,282
2,532,545
–
–
(1,619,578)
(894,791)
–
–
130,275
–
–
–
–
(767,735)
–
–
(342,051)
(374,388)
–
–
4,575,928
495,631
–
–
Effects of:
Income not subject to tax
Tax free distributions on investments (note 25)
Utilisation of tax losses previously unrecognised
Franking credits available
your society
queensland law society 2006/07 97
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
24
Income tax (continued)
Current Income Tax Liability
Consolidated
For the financial
year ended
30 June 2007
For the financial
year ended
30 June 2007
For the financial
period from 1 May
2005 to 30 June
2006
$
$
$
$
1,233,149
–
–
–
(1,160,802)
–
–
–
(72,347)
–
–
–
Current year income tax
3,786,727
1,233,149
–
–
Current year tax payments
(136,368)
–
–
–
Income Tax at the end of the financial year
3,650,359
1,233,149
–
–
Income Tax at the beginning of the financial year
Prior year tax payments
Prior year under/(over) provision
25
Parent Entity
For the financial
period from 1 May
2005 to 30 June
2006
Deferred income tax liabilities
The movement in the deferred income tax account is as follows:
Consolidated
2007
2006
$
$
$
$
–
–
–
Effects of Adoption of AeIFRS on 1 May 2006
–
801,214
–
–
Current Year Tax charge to income statement
789,201
(737,518)
–
–
31,342
–
–
–
Charged to fair value reserve
(698,546)
1,254,954
–
–
Balance at end of the financial year
1,440,647
1,318,650
–
–
Prior Year Tax charge to income statement
79th
2006
1,318,650
Balance at beginning of the financial year
98 Parent Entity
2007
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
25
Deferred income tax liabilities (continued)
The balance comprises temporary differences attributable to:
Consolidated
Parent Entity
2007
2006
2007
2006
$
$
$
$
Deferred Tax Assets
– Balance at beginning of the financial year
(737,518)
–
–
–
712,718
(712,718)
–
–
24,800
(24,800)
–
–
(47,250)
–
–
–
(47,250)
(737,518)
–
–
2,056,168
–
–
–
(698,546)
2,056,168
–
–
130,275
–
–
–
1,487,897
2,056,168
–
–
1,440,647
1,318,650
–
–
Charge to income statement
– Investment Income not recognised in prior year
– Other timing differences
– Allowance for impairment of receivables
Deferred Tax Liabilities
– Balance at beginning of the financial year
Charge to equity
– Gain/(Loss) in fair value reserve
Charge to income statement
– Tax-free distribution on Investments
Balance at end of the financial year
your society
queensland law society 2006/07 99
FINANCIAL STATEMENTS
Certificate of Queensland Law Society Incorporated
The general-purpose financial report has been prepared pursuant to s46F(5) of the Financial Administration and Audit Act 1977 (‘the Act’) and other prescribed
requirements. In accordance with s46F(3) of the Act we certify that in our opinion:
(a)
the foregoing financial statements with other information and notes to and forming part thereof are in agreement with the accounts and records of the
Queensland Law Society Incorporated and its controlled entities; and
(b)
in our opinion –
(i)
the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and
(ii)
the foregoing financial statements have been drawn up so as to present a true and fair view in accordance with prescribed accounting
standards of the transactions of the Queensland Law Society Incorporated and its controlled entities for the period 1 July 2006 to 30 June
2007 and of the financial position as at the close of that period.
President
Megan Mahon
28 September 2007
100 79th
annual report
Chief Executive Officer
Peter Carne
28 September 2007
www.qls.com.au
FINANCIAL STATEMENTS
Independent Auditors Report
To the Council of the Queensland Law Society Incorporated
Matters Relating to the Electronic Presentation of the Audited Financial Report
The audit report relates to the financial report of Queensland Law Society Incorporated for the financial year ended 30 June 2007 included on Queensland
Law Society Incorporated web site. The Council members are responsible for the integrity of the Queensland Law Society Incorporated web site. We
have not been engaged to report on the integrity of Queensland Law Society Incorporated web site. The audit report refers only to the statements named
below. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of the financial report
are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report,
available from Queensland Law Society Incorporated, to confirm the information included in the audited financial report presented on this web site.
These matters also relate to the presentation of the audited financial report in other electronic media including CD-ROM.
Report on the Financial Report
I have audited the accompanying financial report of Queensland Law Society Incorporated, which comprises the balance sheet as at 30 June 2007and the
income statement, statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies,
other explanatory notes and certificates given by the President of the Council and officer responsible for the financial administration of the consolidated entity
comprising the Queensland Law Society Incorporated and the entities it controlled at the year’s end or from time to time during the financial year.
The Council’s Responsibility for the Financial Report
The Council is responsible for the preparation and fair presentation of the financial report in accordance with prescribed accounting requirements identified
in the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997 including compliance with applicable Australian Accounting
Standards (including the Australian Accounting Interpretations). This responsibility includes designing, implementing and maintaining internal controls
relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and
applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with Auditor-General of
Queensland Auditing Standards, which incorporate the Australian Auditing Standards. These Auditing Standards require compliance with relevant ethical
requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance whether the financial report is free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected
depend on the auditor’s judgment, including the assessment of risks of material misstatement in the financial report, whether due to fraud or error. In making
those risk assessments, the auditor considers the entity’s preparation and fair presentation of the financial report in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control, other than
in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies and
the reasonableness of accounting estimates made by the Society, as well as evaluating the overall presentation of the financial report and any mandatory
financial reporting requirements as approved by the Treasurer for application in Queensland.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
Independence
The Financial Administration and Audit Act 1977 promotes the independence of the Auditor-General and QAO authorised auditors. The Auditor-General is the
auditor of all Queensland public sector entities and can only be removed by Parliament.
The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit
powers are to be exercised.
The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the
Auditor-General’s opinion are significant.
Auditor’s Opinion
In accordance with s46G of the Financial Administration and Audit Act 1977 –
(a)
I have received all the information and explanations which I have required; and
(b)
in my opinion –
(i)
the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and
(ii)
the financial report has been drawn up so as to present a true and fair view, in accordance with the prescribed accounting standards of the
transactions of the Queensland Law Society Incorporated and the consolidated entity for the financial year 1 July 2006 to 30 June 2007 and
of the financial position as at the end of that year.
GARY PAUL SMITH FCPA
Appointed auditor
as Delegate of the Auditor-General of Queensland
Brisbane
29 September 2007
your society
queensland law society 2006/07 101
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Legal Practitioners’ Fidelity Guarantee Fund
Income Statement
for the year ended 30 June 2007
NOTES
2007
2006
$
$
Revenue
Standard Practitioners Fees
Additional Practitioner Fees
2
Interest on Investments
Other Income
Costs Recovered
3
Total Revenue
75
4,275
2,120,840
1,950,305
303,803
202,172
–
5,260
13,811
10,000
2,438,529
2,172,012
122,778
140,059
412,487
721,783
1,094,110
609,650
30,907
36,058
14,201
54,094
1,674,483
1,561,644
764,046
610,368
Expenses
Administration Expenses
4
Claims approved for payment
Notified Claims Expense
Expenses Reimbursed to the Queensland Law Society Incorporated
Receivership Costs
Total Expenses
Operations Surplus/(Deficit)
5
The accompanying notes form part of these statements.
102 79th
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Legal Practitioners’ Fidelity Guarantee Fund
Balance Sheet
as at 30 June 2007
NOTES
2007
2006
$
$
Current Assets
Cash and Cash Equivalents
11(a)
7,065,727
3,195,949
56,929
43,574
Total Current Assets
7,122,656
3,239,523
Total Assets
7,122,656
3,239,523
Receivables
6
Current Liabilities
Payables
7
156,270
123,480
Income in Advance
8
1,989,340
–
Provision for Notified Claims
9
1,703,760
609,650
Accrued Employee Benefits
10
10,680
9,335
3,860,050
742,465
22,920
21,418
22,920
21,418
Total Liabilities
3,882,970
763,883
Net Assets
3,239,686
2,475,639
Retained Surpluses
3,239,686
2,475,640
Total Equity
3,239,686
2,475,640
Total Current Liabilities
Non-Current Liabilities
Accrued Employee Benefits
Total Non-Current Liabilities
10
Equity
The accompanying notes form part of these statements.
your society
queensland law society 2006/07 103
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Legal Practitioners’ Fidelity Guarantee Fund
Statement of Changes in Equity
for the year ended 30 June 2007
Balance at 1 July 2006
Operations Surplus/(Deficit) for the Period
Balance at 30 June 2007
2007
2006
$
$
2,475,640
1,865,272
764,046
610,368
3,239,686
2,475,640
The accompanying notes form part of these statements.
104 79th
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Legal Practitioners’ Fidelity Guarantee Fund
Cash Flow Statement
for the year ended 30 June 2007
2007
NOTES
2006
$
$
Inflows
Inflows
(Outflows)
(Outflows)
Cash Flows from Operating Activities
Contributions by Practitioners and Cost Recoveries
4,116,184
1,989,059
Claim Payments and Administration Expenses
(530,925)
(1,395,716)
–
6,588
284,519
177,082
3,869,778
777,013
Receipts from LPITAF
–
–
Transfers to Queensland Law Society
–
–
Net cash provided by/(used in) financing activities
–
–
Net Increase/(Decrease) in Cash held
3,869,778
777,013
Cash at the beginning of the Financial Year
3,195,949
2,418,936
7,065,727
3,195,949
Sundry Income
Interest Received
Net cash provided by/(used in) operating activities
11(c)
Cash Flows from Financing Activities
Cash at the end of the Financial Year
11(a)
The accompanying notes form part of these statements.
your society
queensland law society 2006/07 105
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Legal Practitioners’ Fidelity Guarantee Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
Notes
Scope of operation
The Queensland Law Society Incorporated (‘the Society’), pursuant to s147 of the Legal Profession Act 2004 (‘the Act’) is required to continue the existence of
a fund called the Legal Practitioners’ Fidelity Guarantee Fund (the ‘Fund’) as was required under s12 of the Queensland Law Society Act 1952. The Fund has
been established for the purposes of providing a source of compensation for defaults by law practices arising from acts or omissions of associates of the law
practices. The major source of income for the Fund is contributions from legal practitioners.
1
Summary of significant accounting policies
(a)
Basis of accounting
The financial report is a General Purpose Financial Report which has been prepared in accordance with Australian Equivalents to International
Financial Reporting Standards (AeIFRS), the Financial Administration and Audit Act 1977, Financial Management Standard 1997, and other
authoritative pronouncements.
The financial report has also been prepared on the basis of historical cost and except where stated does not take into account changing
money values. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period
and amounts in the report have been rounded to the nearest dollar.
(b)
Change of financial year
During the prior period the Fund altered its financial year for accounting purposes from 30 April to 30 June each year. As a result, the financial
statements of the reporting entity to 30 June 2006 reflect 14 months while the current year represents 12 months.
(c)
Taxation
The Fund has been granted exemption from income tax by the Australian Taxation Office (ATO) per s24AK of the Income Tax Assessment Act
1936 with the exception of Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from
the ATO. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Balance Sheet.
Cash flows are included in the cash flow statement on a gross basis. The GST components of cash flows arising from investing activities and
financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
(d)
Revenue
Revenues are recognised at fair value of the consideration received net of any amount of GST payable to the ATO. Practitioner Fees are
recognised when payment is received. Interest revenue is recognised as it accrues, taking into account the effective yield on the financial
asset and is also recognised net of bank charges.
(e)
Use and revision of accounting estimates
The preparation of the financial report requires the making of estimations and assumptions that affect the recognised amounts of assets,
liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the
basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision
affects both current and future periods.
(f)
Cash and cash equivalents
For the purposes of the Cash Flow Statement, cash assets include all cash and cheques receipted but not banked at 30 June as well as
deposits on call with financial institutions. The Cash Deposit Account and Term Deposit Account are interest bearing accounts which are
readily convertible to cash on hand at the Society’s option. These investments are brought to account at fair value as indicated in note 11(a).
Interest income is brought to account on an accrual basis.
(g)
Receivables
Interest receivable represents interest accruals for amounts received in the month after balance date.
The Fund has brought to account Fines and Cost Recoveries receivable from practitioners. These receivables have been recognised on an
accrual basis and are carried at actual amounts and the collectibility of trade debtors is assessed at reporting date and a specific provision is
made for any doubtful accounts.
(h)
Payables
Trade creditors are recognised on receipt of the goods or services and are carried at actual amounts, gross of applicable trade and other
discounts. Amounts are unsecured and are generally settled on 30 day terms.
106 79th
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Legal Practitioners’ Fidelity Guarantee Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(i)
Employee benefits
Annual leave
Annual leave entitlements represent present obligations resulting from services provided by employees up to balance date, calculated at
undiscounted amounts based on remuneration rates that the entity expects to pay as at reporting date including related on-costs, such as,
employer superannuation contributions, workers compensation insurance and payroll tax.
Sick leave
Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to recur
in future periods and therefore it is unlikely that existing accumulated entitlements will be used by employees’ and no liability for unused sick
leave entitlements is recognised.
Long service leave
The provision for employee benefits for long service leave represents the present value of the estimated future cash outflows to be made
resulting from employees’ services provided to reporting date.
The provision is calculated using expected future increases in remuneration rates including related on-costs and is based on experience of
employee departure per year of service. Long service leave expected to be paid in the next 12 months is recorded as a current liability in the
Balance Sheet. Long service leave expected to be paid later than one year is recorded as a non-current liability and is discounted using the
Commonwealth Bond rate at reporting date which most closely match the terms of maturity of the related liabilities. The unwinding of the
discount is treated as long service leave expense.
(j)
Provision for notified claims
Claims are brought to account in the year they are notified.
(k)
Income in advance
Income in advance relates to Fidelity Fund Levies collected from the profession in relation to the upcoming financial year. (ie: current year
levies in advance relate to collections for the financial year 1 July 2007 to 30 June 2008).
(l)
Judgements and assumptions
The entity has made no judgements or assumptions which may cause a material adjustment to the carrying amounts of assets and liabilities
within the next reporting period.
2
Additional practitioner fees
With a view to ensuring that the Fund is able to meet its financial commitments when they fall due, the Council of the Queensland Law Society
Incorporated resolved to levy each practitioner $320 (2006 – $310) in accordance with s156 of the Act.
3
Costs recovered
Claims
Defaulting Practitioners
your society
2007
2006
$
$
10,000
10,000
3,811
–
13,811
10,000
queensland law society 2006/07 107
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Legal Practitioners’ Fidelity Guarantee Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
4
Administration expenses
2007
2006
$
$
Audit fees – Fidelity Fund
6,860
8,950
Bad debt expense
5,484
–
123
100
Insurance
–
318
Payroll tax
2,481
4,688
Professional fees
3,657
14,240
Rent and electricity
10,836
12,641
Salaries
85,614
90,886
2
–
7,705
8,264
16
(28)
122,778
140,059
Bank charges
Sundry expenses
Superannuation
Telephone
5
Expenses reimbursed to the Queensland Law Society Incorporated
The Fund, pursuant to s152 of the Act, is required to reimburse the Society for all costs and expenses incurred in the administration of the Fund. The
Society performs all managerial and administrative tasks on behalf of the Fund.
2007
2006
$
$
Administration fees
6
30,907
36,058
30,907
36,058
Receivables
2007
2006
$
$
Current
Trade debtors
1,000
7,487
–
–
1,000
7,487
55,278
35,994
651
93
56,929
43,574
Less: Provision for doubtful debts
Interest Receivable
GST receivable
7
Payables
Approved claims
Other payables and accruals
108 79th
annual report
2007
2006
$
$
139,033
110,769
17,237
12,711
156,270
123,480
www.qls.com.au
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Legal Practitioners’ Fidelity Guarantee Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
8
Income in advance
Fidelity guarantee fee for upcoming year
2007
2006
$
$
1,989,340
–
1,989,340
–
Levies are collected by the Queensland Law Society Incorporated on behalf of the Fund. The levies collected in May and June 2006 relating to
the 2006/07 year were paid to the fund in July 2006. As a result, at 30 June 2006 the fund had no income in advance. The levies collected by the
Queensland Law Society Incorporated in May and June 2007 relating to the 2007/08 year were paid to the fund in June 2007. As a result, this is
shown as income in advance.
9
Provision for notified claims
Notified claims
10
2007
2006
$
$
1,703,760
609,650
Accrued employee benefits
2007
2006
$
$
Current
Provision for annual leave
10,680
9,335
10,680
9,335
22,920
21,418
22,920
21,418
1
1
Non-Current
Provision for long service leave
Number of employees at year end
11
Notes to the cash flow statement
(a)
Reconciliation of cash
For the purposes of the cash flow statement, cash includes cash on hand and in banks and investments on money market instruments, net
of outstanding bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in
the balance sheet as follows:
(b)
2007
2006
$
$
Cash assets
1,353,818
17,391
Cash deposit account
1,161,909
178,558
Term deposit account
4,550,000
3,000,000
7,065,727
3,195,949
Financing facilities
The Fund has no external non-cash financing or any standby credit facilities or any other loan facilities.
your society
queensland law society 2006/07 109
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Legal Practitioners’ Fidelity Guarantee Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(c)
Reconciliation of net cash provided by/(used in) operating activities to the operating surplus/(deficit) for the year
Operations Surplus/(Deficit)
2007
2006
$
$
764,046
610,368
(13,355)
10,717
3,116,240
156,863
(Decrease)/increase in employee entitlements
2,847
(935)
Net cash provided by/(used in)operating activities
3,869,778
777,013
Changes in assets and liabilities:
(Increase)/decrease in receivables
(Decrease)/increase in creditors and claims
12
Contingent liabilities
There are no known contingencies at balance date (2006 – nil).
13
Operating lease expense commitments
The Fund has no operating lease commitments (2006 – nil).
14
Financial instruments
(a)
Interest rate risk exposure
The Fund’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets is detailed below:
Cash assets are represented by amounts held in bank accounts. The effective weighted average interest rate for the year ended 30 June
2007 was 4.33%.
No significant interest rate risk has been identified for receivables or payables.
(b)
Credit risk exposure
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The credit risk on financial assets of
the fund which has been recognised on the balance sheet is the carrying amount of trade debtors, net of any provision for doubtful debts.
(c)
Fair value
The net fair value of cash, interest bearing term deposits, special deposit accounts, receivables and creditors approximate their carrying
amount.
110 79th
annual report
www.qls.com.au
FINANCIAL STATEMENTS
Certificate of Legal Practitioners’ Fidelity Guarantee Fund
The foregoing financial statements have been prepared pursuant to s153 Queensland Legal Profession Act 2004 and other prescribed requirements and we
certify that –
(a)
the foregoing financial statements with other information and notes to and forming part thereof are in agreement with the accounts and records of the
Legal Practitioners’ Fidelity Guarantee Fund; and
(b)
in our opinion –
(i)
the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and
(ii)
the foregoing financial statements have been drawn up so as to present a true and fair view in accordance with prescribed accounting
standards of the transactions of the Legal Practitioners’ Fidelity Guarantee Fund for the financial period 1 July 2006 to 30 June 2007 and of
the financial position as at the close of that period.
President
Megan Mahon
28 September 2007
your society
Chief Executive Officer
Peter Carne
28 September 2007
queensland law society 2006/07 111
FINANCIAL STATEMENTS
Independent Auditors Report
To the Legal Practitioners Fidelity Guarantee Fund
Matters Relating to the Electronic Presentation of the Audited Financial Report
The audit report relates to the financial report of Legal Practitioners Fidelity Guarantee Fund for the financial year ended 30 June 2007 included on
Queensland Law Society Incorporated web site. The Council members are responsible for the integrity of the Queensland Law Society Incorporated web site.
We have not been engaged to report on the integrity of Queensland Law Society Incorporated web site. The audit report refers only to the statements named
below. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of the financial report
are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report,
available from Queensland Law Society Incorporated, to confirm the information included in the audited financial report presented on this web site.
These matters also relate to the presentation of the audited financial report in other electronic media including CD-ROM.
Report on the Financial Report
I have audited the accompanying financial report of Legal Practitioners Fidelity Guarantee Fund which comprises the balance sheet as at 30 June 2007, the
income statement, statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies,
other explanatory notes and certificates given by the officer responsible for the financial administration of Legal Practitioners Fidelity Guarantee Fund.
The Council’s Responsibility for the Financial Report
The Council is responsible for the preparation and fair presentation of the financial report in accordance with prescribed accounting requirements identified
in the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997, including compliance with applicable Australian Accounting
Standards (including the Australian Accounting Interpretations). This responsibility includes designing, implementing and maintaining internal control relevant
to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with Auditor-General of
Queensland Auditing Standards, which incorporate the Australian Auditing Standards. These Auditing Standards require compliance with relevant ethical
requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance whether the financial report is free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend
on the auditor’s judgment, including the assessment of risks of material misstatement in the financial report, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control,
other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting
policies and the reasonableness of accounting estimates made by the fund, as well as evaluating the overall presentation of the financial report including any
mandatory financial reporting requirements as approved by the Treasurer for application in Queensland.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
Independence
The Financial Administration and Audit Act 1977 promotes the independence of the Auditor-General and QAO authorised auditors. The Auditor-General is the
auditor of all Queensland public sector entities and can only be removed by Parliament.
The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit
powers are to be exercised.
The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the
Auditor-General’s opinion are significant.
Auditor’s Opinion
In accordance with s46G of the Financial Administration and Audit Act 1977 –
(a)
I have received all the information and explanations which I have required; and
(b)
in my opinion –
(i)
the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and
(ii)
the financial report has been drawn up so as to present a true and fair view, in accordance with the prescribed accounting standards of the
transactions of the Legal Practitioners Fidelity Guarantee Fund for the financial year 1 July 2006 to 30 June 2007 and of the financial position
as at the end of that year.
GARY PAUL SMITH FCPA
Appointed auditor
as Delegate of the Auditor-General of Queensland
Brisbane
29 September 2007
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Law Claims Levy Fund
Income Statement
for the year ended 30 June 2007
NOTES
2007
2006
$
$
Revenue
Additional Levies
2
90,000
48,833
Realisation of Claim Management Fee
3
3,777,867
539,497
1,764,176
1,086,348
5,632,043
1,674,678
83,736
–
2,050
5,300
877,725
547,376
138,630
166,254
530,867
(661,303)
Reinsurance Recoveries
(727,624)
–
Solicitors Deductibles
(103,214)
–
–
45,000
802,170
102,627
4,829,873
1,572,051
Investment Income
Total Revenue
Expenses
Administration Expenses
Audit Fees
Claims Management Expense
3
Claims
Claims Paid
Movement in Outstanding Claims
Provision for Doubtful Debts
Total Expenses
Operating Surplus/(Deficit)
4
The accompanying notes form part of these statements.
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queensland law society 2006/07 113
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Law Claims Levy Fund
Balance Sheet
as at 30 June 2007
NOTES
2007
2006
$
$
Current Assets
Cash and cash equivalents
7
40,543,003
13,950,016
Receivables
5
82,585
65,926
40,625,588
14,015,942
3,807,575
3,500,342
3,807,575
3,500,342
44,433,163
17,516,284
25,418,375
3,777,866
24,145
5,300
928,102
397,235
–
103,214
Total Current Liabilities
26,370,622
4,283,616
Net Assets
18,062,541
13,232,668
18,062,541
13,232,668
18,062,541
13,232,668
Total Current Assets
Non-Current Assets
Other Financial Assets
7
Total Non-Current Assets
Total Assets
Current Liabilities
Income in Advance
3
Creditors and Accruals
Provision for Outstanding Claims
Solicitors’ Deductibles
4
Equity
Retained Surpluses
Total Equity
The accompanying notes form part of these statements.
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Law Claims Levy Fund
Statement of Changes to Equity
for the year ended 30 June 2007
Balance at 1 July 2006
Operating Surplus
Balance at 30 June 2007
2007
2006
$
$
13,232,668
11,660,617
4,829,873
1,572,051
18,062,541
13,232,668
The accompanying notes form part of these statements.
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Law Claims Levy Fund
Cash Flow Statement
for the year ended 30 June 2007
2007
NOTES
2006
$
$
Inflows
Inflows
(Outflows)
(Outflows)
Cash Flows from Operating Activities
Receipts from the Profession
25,504,954
2,418,030
Claims Handling Expenses
(877,725)
(547,376)
Claim Payments
(138,630)
(166,254)
Reinsurance Recoveries
727,624
–
Payments to Suppliers
(66,941)
(347,960)
Interest Receipts
1,443,705
1,074,820
26,592,987
2,431,260
Net Increase/(Decrease) in Cash held
26,592,987
2,431,260
Cash at the beginning of the Financial Year
13,950,016
11,518,756
40,543,003
13,950,016
Net Cash Provided by/(Used in) Operating Activities
Cash at the end of the Financial Year
6(c)
6(a)
The accompanying notes form part of these statements.
116 79th
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Law Claims Levy Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
Notes
Scope of operation
The Queensland Law Society Incorporated (‘the Society’), pursuant to s227 of the Legal Profession Act 2004 (‘the Act’) is authorised to establish and
maintain a fund for the purposes of providing indemnity against loss arising from claims in respect of civil liability incurred by a practising or former practising
practitioner. Therefore, the Law Claims Levy Fund (‘The Fund’) was created in 1987 to provide professional indemnity insurance to Queensland solicitors.
The Law Claims Levy Fund is responsible for the professional indemnity insurance of practitioners for the years 1987 to 1995 and its role now is to administer
the run off of insurance claims in the process of finalisation.
1
Summary of significant accounting policies
(a)
Basis of accounting
The financial report is a General Purpose Financial Report which has been prepared in accordance with Australian Equivalents to International
Financial Reporting Standards (AeIFRS), the Financial Administration and Audit Act 1977, Financial Management Standard 1997, and other
authoritative pronouncements.
The financial report has also been prepared on the basis of historical cost and except where stated does not take into account changing
money values. Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period
and amounts in the report have been rounded to the nearest dollar.
(b)
Revenue
Additional levies may be imposed in accordance with the indemnity rules and are accounted for separately and disclosed as income of the
Fund. Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset and is also recognised net of
bank charges.
(c)
Taxation
The Fund has been granted exemption from income tax by the Australian Taxation Office (ATO) per s24AK of the Income Tax Assessment Act
1936 with the exception of Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from
the ATO. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet.
Cash flows are included in the cash flow statement on a gross basis. The GST components of cash flows arising from investing activities and
financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
(d)
Solicitors’ deductibles
Solicitors’ Deductibles represents an excess which has been charged to solicitors in accordance with the Master Policy agreement. These
monies are accounted for as a current liability at balance date and are used to make future payments on files when costs are determined.
(e)
Cash and cash equivalents
For the purposes of the Balance Sheet and Cash Flow Statement, cash assets include all cash and cheques receipted but not banked at
30 June as well as deposits on call with financial institutions. Short term deposits is an interest bearing account which is readily convertible
to cash on hand at the Society’s option and is subject to a low risk of change in value. Investments are brought to account at fair value as
indicated in Note 6(a). Interest income is brought to account on an accrual basis.
(f)
Other receivables
Interest receivable represents interest accruals for amounts received in the month after balance date.
The Fund has brought to account solicitors’ deductibles and penalties receivable from practitioners. These receivables have been recognised
on an accrual basis and are carried at actual amounts and the collectibility of trade debtors is assessed at reporting date and a specific
provision is made for any doubtful accounts.
(g)
Provision for outstanding claims
Claims are actuarially assessed and the movement in the actuarial assessment is disclosed in the income statement as movement in
outstanding claims. Actual claim payments are separately disclosed.
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Law Claims Levy Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
(h)
Other Financial Assets
(i)
Recognition and derecognition
Purchases and sales of investments are recognised on trade-date – the date on which the Fund commits to purchase or sell the
asset. Other financial assets are recognised when there is a contractual right to receive cash or financial assets; or to exchange
financial instruments with another enterprise.
Investments are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred
and the Fund has transferred substantially all risks and rewards of ownership.
(ii)
Initial measurement
Investments are initially recognised at fair value plus transaction costs.
(iii)
Subsequent measurement
Investment assets are subsequently carried at fair value. Loans and receivables are carried at amortised cost using the effective
interest method.
Unrealised gains and losses arising from changes in the fair value of investments are recognised in the fair value reserve within
equity. When investments are sold or impaired, the accumulated fair value adjustments in the fair value reserve within equity are
included in the income statement.
(iv)
Determination of fair value
The fair values of quoted investments are based on investment intermediaries’ quotes at the balance sheet date. The carrying
amount of current receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for
disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available
to the Fund for similar investments.
(v)
Impairment
The Fund assesses at each balance sheet date whether there is objective evidence that an investment or a group of investments is
impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated
future cash flows, discounted at the original effective interest rate. The amount of the allowance is recognised in the income
statement.
In the case of equity investments classified as investments, a significant or prolonged decline in the fair value of the investments
below its cost is considered in determining whether the investments are impaired. If any such evidence exists for investments, the
cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on
that investment previously recognised in profit or loss – is removed from the fair value reserve within equity and recognised in the
income statement. Impairment losses recognised in the income statement on equity investments are not reversed through the
income statement, until the equity investments are disposed of.
(i)
Income in advance
Income in advance relates to Insurance Levies collected from the profession in relation to the upcoming insurance year. (ie: current year
levies in advance relate to collections for the insurance year 1 July 2007 to 30 June 2008)
(j)
Payables
Trade creditors are recognised on receipt of the goods or services and are carried at actual amounts, gross of applicable trade and other
discounts. Amounts are unsecured and are generally settled on 30 day terms.
(k)
Employee benefits
The fund has no employees and as such no benefits outstanding
(l)
Professional indemnity insurance
The Queensland Law Society Incorporated entered into a Master Policy agreement with Professional Indemnity Insurers to limit the maximum
liability of the Fund for both individual claims and aggregate amounts. The Fund incurs all expenses up to a prescribed amount per individual
claim until such time as the aggregate amount has been reached at which time the Professional Indemnity Insurers incur all future costs. The
respective individual liability per claim is listed in Note 8.
(m)
Judgements and assumptions
Full provision is made for the estimated cost of all claims admitted or intimated but not settled at the balance sheet date, less reinsurance
recoveries, using the best information available at that time.
In addition, provision is made for claims incurred but not reported (‘IBNR’) at the date of the balance sheet based on claims experience and
industry statistics.
The entity has made no other judgments or assumptions which may cause a material adjustment to the carrying amounts of assets and
liabilities within the next reporting period.
118 79th
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Law Claims Levy Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
2
Additional levies
2007
2006
$
$
Additional levies – St Paul’s Insurance Australia Ltd
Additional levies 1987 to 1995
3
–
13,833
90,000
35,000
90,000
48,833
Income in advance
The Law Claims Levy Fund received contributions from practitioners to meet the claim management costs for the insurance years 2002 to 2005. Post
2005, the claims management fee is part of the overall insurance levy. Claims management fees for the insurance period 1987 to 1995 are met from
existing reserves.
Income in advance
2007
2006
$
$
3,777,867
2,817,364
–
1,500,000
(877,725)
–
(2,900,142)
(539,497)
–
3,777,867
25,418,375
–
Claims management fees in advance:
Opening balance
Contributions received
Less: Amounts transferred to Lexon Insurance Pte Ltd
Less: Claims management fee released
Closing balance at end of reporting period
Levies received in advance
Claims management expense
2007
2006
$
$
Years of insurance
4
1987 to 1995
–
7,879
2002 to 2006
877,725
539,497
877,725
547,376
Provision for outstanding claims
2007
2006
$
$
Opening balance at start of reporting period
397,235
1,058,538
Claims Incurred
669,497
(495,049)
(138,630)
(166,254)
928,102
397,235
Claims Paid
Closing balance at end of reporting period
Current liability
Non-current liability
2007
2006
$
$
928,102
397,235
–
–
928,102
397,235
The Fund has a stop loss policy with Lexon Insurance Pte Ltd (formerly QLS Insurance Pte Ltd) which initially capped its liability for future payments at
$5,000,000 at 1 July 2002.
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queensland law society 2006/07 119
FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Law Claims Levy Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
5
Receivables
2007
2006
$
$
Current
Trade debtors
–
366,764
Less: Provision for doubtful debts
–
(366,764)
–
–
78,368
65,130
4,217
796
82,585
65,926
Interest receivable and prepayments
GST receivable
6
Notes to the cash flow statement
(a)
Reconciliation of cash
For the purposes of the cash flow statement, cash includes cash on hand and in banks and investments on money market instruments, net
of outstanding bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in
the balance sheet as follows in note 7.
(b)
Financing facilities
The Fund has no external non-cash financing or any standby credit facilities or any other loan facilities.
(c)
Reconciliation of net cash provided by operating activities to the operating surplus/(deficit) for the year
2007
2006
$
$
4,829,873
1,572,051
(307,234)
(341,959)
Decrease/(increase) in accounts receivables
(16,659)
902,669
Increase/(decrease) in provision for outstanding claims
530,867
(661,303)
Increase/(decrease) in accounts payables
18,846
(700)
Increase/(decrease) in income in advance
21,640,508
960,502
(103,214)
–
26,592,987
2,431,260
Surplus/(deficit) for the period
Adjustments for:
Managed funds investment income
Changes in assets and liabilities:
Increase/(decrease) in solicitors’ deductibles
Net cash provided by/(used in) operating activities
Due to the Fund acting as the collecting agent for insurance premiums, gross receipts and payments disclosed in the Cash Flow Statement
exceed revenue and expenditure disclosed in the Fund’s Income Statement.
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FINANCIAL STATEMENTS
Queensland Law Society Incorporated
Law Claims Levy Fund
Notes to and forming part of the Financial Statements
for the year ended 30 June 2007
7
Cash and cash equivalents
2007
2006
$
$
Current Assets:
Cash at bank
24,764,408
48,079
Short term deposits at cost
15,778,595
13,901,937
40,543,003
13,950,016
3,807,575
3,500,342
3,807,575
3,500,342
Non-Current Assets:
Other Financial Assets
Managed funds at market value
8
Contingent liabilities
Under the present insurance agreements the total liability of the Fund for the respective years of insurance is limited to $100,000 (1987 to 1994) and
$500,000 (1995) per individual claim and this amount is reduced by the amount of the solicitors’ deductible. Also an aggregate limit per respective
year of insurance applies and this limits the total liability of the Fund.
Based on the actuarial advice in respect of the position of the Fund as at 30 June 2007, the insurance in place with regard to the limits per file, and
the overall Fund’s aggregate limit as at 30 June 2007, the Society is of the opinion that the funds on hand together with future investment income and
deductibles, and in conjunction with Stop Loss cover (see note 4) will ensure that all future claims will be met as and when they fall due.
9
Financial instruments
(a)
Interest rate risk exposure
The Fund’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets is detailed below.
Cash assets are represented by amounts held in bank accounts. Cash at Bank is a working cheque account and is not exposed to interest
rate risk. Short term deposits are held with Commonwealth Bank of Australia. The average interest rate for the year ended 30 June 2007 was
6.20%.
(b)
Credit risk exposure
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The concentration of credit risk in
relation to the Fund lies with interest receivable and has been assessed as minimal due to the credit rating of the investment institutions.
(c)
Net fair value
The net fair value of cash, interest bearing term deposits, special deposit accounts, receivables and creditors approximate their carrying
amount.
(d)
Market risk
The Fund is exposed to equity securities price risk. This arises from investments held by the Fund and classified on the balance sheet as
other financial assets. The Fund is not exposed to commodity price risk.
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FINANCIAL STATEMENTS
Certificate of Law Claims Levy Fund
The foregoing financial statements have been prepared in accordance with the provisions of the Financial Administration and Audit Act 1977 (‘the Act’) and
other prescribed requirements and we certify that in our opinion:
(a)
the foregoing financial statements with other information and notes to and forming part thereof are in agreement with the accounts and records of the
Law Claims Levy Fund; and
(b)
in our opinion –
(i)
the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and
(ii)
the financial statements have been drawn up so as to present a true and fair view, in accordance with prescribed accounting standards, of
the transactions of the Law Claims Levy Fund for the financial year 1 July 2006 to 30 June 2007 and of the financial position as at the close of
that year.
President
Megan Mahon
28 September 2007
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Chief Executive Officer
Peter Carne
28 September 2007
www.qls.com.au
FINANCIAL STATEMENTS
Independent Auditors Report
To the Law Claims Levy Fund
Matters Relating to the Electronic Presentation of the Audited Financial Report
The audit report relates to the financial report of Law Claims Levy Fund for the financial year ended 30 June 2007 included on Queensland Law Society
Incorporated web site. The Council members are responsible for the integrity of the Queensland Law Society Incorporated web site. We have not been
engaged to report on the integrity of Queensland Law Society Incorporated web site. The audit report refers only to the statements named below. It does
not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of the financial report are concerned
with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report, available from
Queensland Law Society Incorporated, to confirm the information included in the audited financial report presented on this web site.
These matters also relate to the presentation of the audited financial report in other electronic media including CD-ROM.
Report on the Financial Report
I have audited the accompanying financial report of Law Claims Levy Fund which comprises the balance sheet as at 30 June 2007, the income statement,
statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies, other explanatory notes
and certificates given by the officer responsible for the financial administration of Law Claims Levy Fund.
The Council’s Responsibility for the Financial Report
The Council is responsible for the preparation and fair presentation of the financial report in accordance with prescribed accounting requirements identified
in the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997, including compliance with applicable Australian Accounting
Standards (including the Australian Accounting Interpretations). This responsibility includes designing, implementing and maintaining internal control relevant
to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with Auditor-General of
Queensland Auditing Standards, which incorporate the Australian Auditing Standards. These Auditing Standards require compliance with relevant ethical
requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance whether the financial report is free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend
on the auditor’s judgment, including the assessment of risks of material misstatement in the financial report, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control,
other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting
policies and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial report including
any mandatory financial reporting requirements as approved by the Treasurer for application in Queensland.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
Independence
The Financial Administration and Audit Act 1977 promotes the independence of the Auditor-General and QAO authorised auditors. The Auditor-General is the
auditor of all Queensland public sector entities and can only be removed by Parliament.
The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit
powers are to be exercised.
The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the
Auditor-General’s opinion are significant.
Auditor’s Opinion
In accordance with s46G of the Financial Administration and Audit Act 1977 –
(a)
I have received all the information and explanations which I have required; and
(b)
in my opinion –
(i)
the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and
(ii)
the financial report has been drawn up so as to present a true and fair view, in accordance with the prescribed accounting standards of the
transactions of the Law Claims Levy Fund for the financial year 1 July 2006 to 30 June 2007 and of the financial position as at the end of that
year.
GARY PAUL SMITH FCPA
Appointed auditor
as Delegate of the Auditor-General of Queensland
Brisbane
29 September 2007
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