Page 61 - Law Society of Hong Kong MPMC Manual v8 - With checklists (1 March 2018)

Practice Management Course | Checklist 3
Closing a Practice

CHECKLIST 3: CLOSING A PRACTICE

Do you know what circumstances may constitute a cessation of practice? "Cessation" occurs or
may occur on:

• the retirement of a sole practitioner; or
• the closure of a practice by a partnership; or
• the retirement of a partner from a partnership; or
• the amalgamation of 2 existing firms; or
• where an existing firm is dissolved and the partners divide into two or more new firms.

STEP ACTION CHECK 
1. PRELIMINARY READING
To close a practice read the following:
• Law Society Guidelines Cessation of Practice by Hong Kong Firms
• Guidance Notes on Cessation of Practice - Includes Form for Notice of
Cessation of Practice
• Law Society Practice Direction D7
• Guidelines on Appointment as an agent
2. NOTIFY SOCIETY IN WRITING AT LEAST 8 WEEKS BEFOREHAND
The firm must notify the Society of the intended cessation in writing in a form
approved by the Society at least 8 weeks prior to the date of cessation.
• Guidance Notes on Cessation of Practice - Includes Form for Notice of
Cessation of Practice
3. SUBMIT FINAL EMPLOYEES’ RETURN FORM
Provide within 14 days of the date of cessation of any change in the
employment of staff of the firm that occurred as a result of the cessation.
Complete and submit the Final Employees’ Return Form – providing
details required in terms of Form 1 [Rule 5] Solicitors' Practice Rules –
Particulars Relating to Solicitors’ Firms for the year to 31 December with
the Society. A declaration regarding:
• Details of sharing of costs and commissions – Schedule 1
• Number of principals, assistant solicitors and consultants as at 31
December
• Details of principals, assistant solicitors or consultants who are also
employees or principals of another firm or a salaried employee of a
company in Hong Kong, the name of the other firm or company and their
position in the other firm or company - Schedule 2, Part A
• Names of all principals, assistant solicitors or consultants who are not
resident in Hong Kong - Schedule 2, Part B
• Full particulars of all new employees between 1 January and 31 December
– Schedule 3
o Full name (English & Chinese, if applicable)
o ID card/ passport No.
o Chinese Commercial Code No.
o Date of Birth
o Position
o Mark "X" if Authorised Clerk
o Monthly Salary
o Bonus(es) or other Allowances
o Date of Employment
• Full particulars of all other employees between 1 January and 31
December – Schedule 4
o Full name (English & Chinese, if applicable)
o ID card/ passport No.

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