Friday, March 27, 2009

Company lawsuits and lawyers

Order 5, rule 6 of the Rules of Court (which are rules regulating procedures in the civil court, require that a body corporate (this includes a company) be represented in court only by a lawyer and no one else.

This means that even if the managing director is an experienced lawyer but is not practising at that time, he cannot represent the company. The logic of this rule escapes me. Surely it should be up to the directors and members whether they insist of professional legal representation or are willing to accept an alternative which may be second best.

This appears to be a important but overlooked advantage of using partnerships for business - as a partner, you can represent the firm in court if you are daring enough, but with a company, you must use a practising lawyer.

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