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An Act to amend The Law Society Act

R.S.M. 1987 Supp., c. 20

An Act to amend The Law Society Act

Secs. 20 and 25 am.

1

The Law Society Act, being chapter L100 of the Re-enacted Statutes of Manitoba, 1987, is amended by striking out the word "Schedule" where it appears

(a) in section 20 thereof; and

(b) in clause (a) and again in clause (b) of subsection 25(1) thereof;

and substituting therefor, in each case, the word and letter "Schedule A".

Subsec. 64(2) added.

2

Section 64 of the Act is amended by renumbering the section as subsection (1) and by adding thereto, immediately after the section as renumbered, the following subsection:

Employment of staff.

64(2)

The foundation may employ such persons as it deems necessary for the administration of its affairs, and may pay their salaries or other remuneration, and any reasonable expenses incurred by them in carrying out their employment, from and out of the funds of the foundation.

Sec. 65 rep. and sub.

3

Section 65 of the Act is repealed and the following section is substituted therefor:

Legal Aid and Law Society grants.

65(1)

The foundation shall pay in each and every fiscal year, from the total trust account interest received by the foundation under section 30.2 in the immediately preceding fiscal year, by such instalments as the foundation deems advisable and subject to subsection (2),

(a) to The Legal Aid Services Society of Manitoba, a grant consisting of 50% of the total trust account interest received by the foundation under section 39 in the immediately preceding fiscal year, or the amount of $1,007,629., whichever is greater; and

(b) to The Law Society of Manitoba, for educational purposes and for the expense incurred in ensuring compliance by members of The Law Society of Manitoba with subsection 39(2), a grant consisting of 16.67% of the total trust account interest received by the foundation under section 39 in the immediately preceding fiscal year, or the amount of $335,383., whichever is greater.

Pro rata amounts.

65(2)

Where in any fiscal year the total trust account interest received by the foundation under section 39 in the immediately preceding fiscal year, after paying or allowing for the expense of administering its affairs in the current fiscal year, is insufficient for making the grants under subsection (1) in the amounts required thereby, the grants shall be made in pro rata amounts.

Reports from Legal Aid and Law Society.

65(3)

The Legal Aid Services Society of Manitoba and The Law Society of Manitoba shall each provide the foundation with a report in each fiscal year, showing how the grant received by each of them from the foundation in the immediately preceding fiscal year under this section was used.

Discretionary grants.

65(4)

Where in any fiscal year a sufficient balance remains in the funds of the foundation to do so, after paying or allowing for the expense of administering its affairs in that fiscal year and after making or allowing for the grants required to be made under this Act in that fiscal year, the foundation may make such other grants, consistent with its objects, by such instalments and subject to such terms and conditions as the foundation deems advisable, and may require any recipient or proposed recipient of a grant under this subsection to submit such reports, documents or information as the foundation deems necessary.

"Fiscal year" defined.

65(5)

In this section, "fiscal year" means the fiscal year of the foundation.

Sec. 68 rep. and sub.

4

Section 68 of the Act is repealed and the following section is substituted therefor:

Terms of office.

68(1)

Each director shall be appointed to hold office for a term of three years and may be re-appointed.

Appointment of successors.

68(2)

A director whose term of office has expired continues to hold office until a successor is appointed.

Secs. 77, 78 and 79 added.

5

The Act is further amended by adding thereto, immediately after section 67 thereof, the following sections:

No personal liability.

77

No member of the board, and no person employed or engaged by the foundation for its purposes, is personally liable for the payment of any debts of the foundation or for any loss, injury or damage suffered by any person as a result of anything done or omitted to be done by the foundation or by the member or person, in good faith and without negligence, in the course of administering the affairs of the foundation.

Application of Corporations Act.

78

The Corporations Act does not apply to the foundation.

Memorandum of Understanding.

79

The foundation shall perform the duties and functions, make the grants and observe the terms and conditions that it is required to perform, make or observe by a certain Memorandum of Understanding between the Government of Manitoba, represented by the Attorney General, and The Law Society of Manitoba, the form and contents of which are as set out in Schedule B.

Schedule B added.

6

The Act is further amended by numbering the present Schedule as Schedule A and by adding thereto, immediately after the Schedule as so numbered, the following Schedule:

NOTE: The references to sections of The Law Society Act in Schedule B are references to that Act as it read immediately prior to the coming into force of the Re-enacted Statutes.

SCHEDULE B

MEMORANDUM OF UNDERSTANDING

Between:

THE GOVERNMENT OF THE PROVINCE OF MANITOBA Represented By The Honourable, The Attorney-General

- and -

THE LAW SOCIETY OF MANITOBA A Body Corporate and Politic

This understanding is to promote the development of the Law Foundation, created by "An Act to Amend The Law Society Act", being Chapter 23 of the Statutes of Manitoba, 1986.

The purpose of this document is to set out transitional arrangements and to guarantee certain grants for a period of three years.

In this document "the Act" means "The Law Society Act", Chapter L100, C.C.S.M. , as heretofore or hereafter amended.

Management of Funds

1

After proclamation of An Act to Amend the Law Society Act, being chapter 23, S.M. 1986, the funds ($1,446,679.73 as of March 31, 1986, and money subsequently received) are to be paid by the Government directly to the Law Foundation, and managed by the Board of Directors according to the Act. The duties of the board include the investment of all funds available to the Foundation, setting terms and conditions for any discretionary grants made under the Act, and scheduling the payment of all grants made under the Act, having regard to such factors as the operational needs of the grantees, the generation of further income for the use of the Foundation, and the ability of the Foundation to meet its obligations under the Act and this document.

Certain Grants Guaranteed

2(1)

In addition to the Legal Aid and Law Society grants specified in the Act, the following grants are to be made annually, for three years, commencing in the 1986-1987 fiscal year:

(a) To the Public Interest Law Department of The Legal Aid Services Society of Manitoba: $200,000.

(b) To the Legal Aid Clinic at the Faculty of Law, University of Manitoba: $60,000.

(c) To the Manitoba Law Reform Commission: $100,000.

(d) To the Manitoba Association for Rights and Liberties: $25,000.

(e) To the Manitoba Branch of The Canadian Bar Association: $25,000.

(f) To the Legal Research Institute of the University of Manitoba: $50,000.

(g) To the Law Phone-in program, according to the terms set out in subparagraph 2(2).

2(2)

A grant in respect of the Law Phone-in program is to be made annually for three years, commencing in the 1986-1987 fiscal year. In the 1986-1987 fiscal year the Law Society is to receive $36,500. In each of the following two fiscal years, The Law Society of Manitoba on behalf of the Community Legal Education Association, or any other agency designated by the Law Society for the purpose of providing the Law Phone-in program, or any other similar legal education program, shall receive the lesser of $40,000 or 2.08% of the total trust account interest received by the Foundation under section 30.2 of the Act in the preceding fiscal year.

2(3)

In fiscal year 1986-1987 the grants set out in this paragraph shall be paid from any funds received by the Foundation in that year. In fiscal years 1987-1988 and 1988-1989 respectively the grants set out in this paragraph shall be paid from the trust account interest received by the Foundation under section 30.2 of the Act in that year.

2(4)

Trust account interest received by the Foundation under section 30.2 of the Act in any fiscal year is to be applied first to the expenses of administering the affairs of the Foundation, second to the Legal Aid and Law Society grants specified in the Act, third to the grants set out in subparagraphs 2(1) and (2) of this document, and fourth to any other grants authorized by the foundation under the Act.

2(5)

Where in any fiscal year the total trust account interest received by the foundation under section 30.2 of the Act in the immediately preceding fiscal year is not sufficient to pay the grants set out in subparagraphs 2(1) and (2) of this document, those grants will be paid in pro rata amounts for that year.

2(6)

In any year where pro rata amounts are paid those amounts are deemed to be in full satisfaction of the grant obligations set out in this paragraph for that year.

2(7)

Each recipient of a grant under this paragraph shall provide the foundation with a report in each fiscal year, showing how the grant received in the immediately preceding fiscal year was used.

Legal Aid and Law Society Grants: Transitional

3

The grants guaranteed to The Legal Aid Services Society of Manitoba and The Law Society of Manitoba under the Act for any fiscal year are to be calculated on the total trust account interest received by the Foundation under section 30.2 of the Act in the preceding fiscal year. For the funds available as of March 31, 1986, the grants will be based on the established formula of 75 per cent to Legal Aid and 25 per cent to the Law Society, payable at such times as the Board of Directors of the Foundation may decide, but no less often than quarterly, with full payment to be made by the end of the 1986-1987 fiscal year.

Application for additional funds

4

All parties and agencies that are guaranteed grants by the Act or by this document may apply for additional funds from the Foundation in any year.

Expiration of Memorandum of Understanding

5

This Memorandum of Understanding expires and ceases to have effect on March 31, 1989, except to the extent necessary to fulfill the obligations created by this document before that date.

In witness of this, the Attorney-General signs this document, and the seal of The Law Society of Manitoba is affixed and attested by its officers:

The Honourable
The Attorney-General of
The Province of Manitoba
The Law Society of Manitoba:
_____________________________________________ _____________________________________________
President
_____________________________________________
Date
_____________________________________________
Chief Executive Officer
_____________________________________________
Date