query
visha lranjan
(Querist) 29 March 2011
This query is : Resolved
my question is that if a private limited company can be formed for providing legal services, then how can it be stopped from advertising, as it is established under companies act??
is it also correct that the indian advocates act,1961 and rules of bar council of india doesn't apply to law firms??
thanks and regards
Devajyoti Barman
(Expert) 29 March 2011
The Law Firms are very much under the regulations of the Advocates' Act.
Advocate. Arunagiri
(Expert) 29 March 2011
Private limited company for rendering legal services can be formed. But, that can be only non litigation only.
visha lranjan
(Querist) 29 March 2011
sir please elaborate "non litigation"!! and please enlighten me regarding the advertising part of the question.. because if the rules of advocates act apply then it prohibits the law firms from advertising but if it is established under companies act, no one can stop a pvt. ltd. company from advertising..
how these two acts can reconcile with each other??
R.Ramachandran
(Expert) 29 March 2011
Dear Mr. Vishal,
You are mixing up things.
First and foremost, even if a private limited company is formed, only Advocates can be its members and not outsiders. In other words, the objects of the Company can only be rendering legal service and nothing more nothing less.
Further more, there is no restriction whatsoever that the Pvt. Ltd. lawyers Company can do only non-litigation work. It can do both advisory and litigation work there can be no segregation or bar on that, so long as the Memorandum of Association of the Company permits the same. Only condition could be apart from legal services, it cannot do any other business.
Having said this, just because it is a private limited company would not automatically take it out from the rigours of the Advocates Act, 1961.
