Topic 1 : Opening and Managing A Legal Firm

Introduction
A law firm is a business entity that employs one or more lawyers to represent clients in
court. The primary service rendered by a law firm is to advise clients about their legal rights
and responsibilities and to represent clients in either civil or criminal cases, business
transactions and other matters in which legal advice and other assistance are sought.
Sole Proprietorship or Partnership?
A law firm can incorporate as a sole proprietor or as a partnership. Both business
forms offer protection in legal and financial matters but the partnership form of
incorporations comes with certain benefits that make it a popular choice among law firms.
In Malaysia, other than sole proprietorships, most firms are preferred to operate on a
partnership structure. In West Malaysia, there are 5,786 law firms in operation and 48.75%
are partnership. An individual who wish to set up a law firm will have to decide whether
they prefer running as a sole proprietor or teaming up with others to form a partnership.
Each of this business entity has their respective pros and cons.
Firstly we will talk about the advantages and disadvantages of engaging your law
firm as a sole proprietorship. Sole proprietorship is high risk but also high in reward business
structures. Sole proprietorship are businesses in Malaysia which are owned by just one
individuals. However, the owner of the business can employed more than one employees to
manage the firm. Owners of the law firm which choose to engage his firm as a sole
proprietorship experience unlimited liability which means that if the business fails to survive
or declares bankruptcy, creditors will be able to sue the business owners for all the debts
which are owed. Thus, the personal assets, personal income, and employment status of the
owner are put at risk. Today, many lawyers in Malaysia still practice as sole proprietors.
Many corporate entities, including banks and insurers, will not engage these sole
proprietors as they want firms to be in partnership in order to be on their panels. As a sole
proprietor, you will need to be prepared that the bank would reduce your borrowing power.
A sole proprietor may also encountered difficulties in competing with major/ big firm in
respect of financial and man power issues. Owner of the firm also will be facing limited ideas
and skills as the size of the law firm is relatively small compared to the partnership law
firms.
 However, sole proprietorship owners who successfully overcome these risks stand to
gain significant benefits. To successfully run a sole proprietorship less paperwork and fewer
additional legal formalities are required, thus easing the registration process. The cost of
incorporation is much lower; thus, profits are usually relatively high. The Malaysian
government exempts sole proprietorship from certain audits. They are also not required to
disclose their financial statements to the public. A sole proprietor also has easier decision
making as he or she need not consult to anyone or his partner about what decision he about
to make. However, he will bare all the losses made out by that decision.
Secondly is the partnership type of business entity that most of the law firms will go
about. It is organized around partners who are joint owners and business directors of the
legal operation, associates who are employees of the firm with the prospect of becoming
partners and a variety of staff employees who provides paralegal, clerical and other support
services. Partnerships can be governed either under the Partnership Act 1961 or have its
own self-created partnership agreements.
Sole proprietorship are run by one person, while partnerships are run between two
and 50 people. In Malaysia, the businesses which make the best use of partnership
structures are small and medium-sized enterprises (SMEs) which is most suitable for law
firms. This is because partnerships provide certain advantages for SMEs. These include a
low startup cost, low maintenance costs, ease of incorporation with the Companies
Commission of Malaysia (SSM), shared liability among all partners, and tax rates tailored to
suit each partner.

However, partnerships also have certain disadvantages. The nature of a partnership

prevents many partnerships from keeping proper accounting records. Tax planning with
regard to a partnership may also be fairly difficult. The business continuity of the
partnership will be affected if a partner dies, quits, or leaves the partnership in any other
manner. In such a situation, the business could be closed or the beneficiaries might not
receive what the departed partner left behind. There will be also joint liability may be
imputed to all partners due to one partner’s inappropriate conduct. Also, all the profit gain
through the business would be divided among all the partners but some may follow the
amount agreed in the partnership agreement. Furthermore, there will no longer be a one-
man decision and every matter including financial dealings must be made with the
agreement of all partners.

Preferred Area of Work

The greatest asset in any knowledge-based organization, such as a professional

service firm (PSF), is the expertise of its professionals. In recent decades, most top-tier PSFs
have focused on expertise specialization, creating narrowly defined practice areas and
rewarding professionals for developing reputations in ever more precise niches. Your
preferred areas of work and personal expertise may dictate that your law practice is of a
certain size, e.g.. certain areas of legal work require many staff and other resources. Lawyers
who fail to initiate some discipline in the types of cases they accept early in their practice
are the lawyers who eventually find that they are not managing their law practice - their law
practice is managing them! Thus, you would want to have a preferable area of work which
in line with you and your partner expertise in order to have your work run smoother and
easier and does not need outsider to lend you a helping hand or you could have just turn
your potential customer away.

There are few area of work which is now consider as a high demand prospect job
scope in the legal field. The areas of law which we can specialize in are arbitration, aviation
law, banking and finance law, corporate law, mediation, criminal law, dispute resolution,
family law and many more.

- Family law deals with family matters and domestic relations, including marriage and
civil partnerships, the termination of relationships and child law. Family law has
grown dramatically since the 1970s, as legislators and judges have re-examined and
redefined legal relationships. Family law is now entwined with national debates over
the structure of family, gender bias and morality.
- Dispute resolution can be split into two major types. Adjudicative processes include
litigation and arbitration and involve an independent third party coming to a final
binding judgement on an issue. Meanwhile, consensual processes like mediation,
conciliation or negotiation involve the parties coming to a decision between
themselves, sometimes with the help of an independent facilitator.
- Criminal law is the branch of law which relates to crime and the punishment of those
who violate laws. Most criminal law is established by statute, however in the UK
there are many important criminal cases which have created legal principles.  The
 fundamentals of a crime are known as the actus reus and the mens rea. These
two Latin terms mean “guilty act” and “guilty mind” and both must be established in
order to prove culpability in most crimes.
- Corporate law governs the functioning of companies; from how they are formed to
the transactions they are permitted to engage in. It applies to shareholders,
directors, creditors and other stakeholders by regulating their rights and duties. One
of the most important pieces of legislation in corporate law is the Companies Act
2016.
- Banking and finance is a diverse type of law which involves the regulation of financial
products and is primarily focused on loan transactions. The work of a finance lawyer
ranges from advising on simple bank loans to companies to working on highly
structured financing arrangements across multiple jurisdictions. Finance lawyers
have to be very commercially minded and consider the business as well as legal
implications of every deal.
- This type of law concerns air travel and is a matter of international law. It involves
admiralty (maritime) law but the business aspects of air travel are largely regulated
by the International Civil Aviation Organization. The emerging field of space law is
predominantly based on aviation law. The Air Navigation and Transport Act 1920
forms the basis of aviation regulation in the UK.
- Arbitration is a technique of resolving civil and commercial disputes outside of court.
The parties present their case to a single arbitrator or a panel who then hands down
a decision which the parties have agreed to be bound by. It is increasingly common
to arbitrate international disputes in a pre-agreed jurisdiction instead of turning to
litigation.

Factors that may be considered in establishing the preferred work your new practice will
accept are:

  Practice areas you wish to develop or in which you have the expertise
 Types of cases within practice areas for which you have expertise or desire to
develop
 The types of clients with whom you would like to work with
 The revenue generated by selected practice areas or case types
 The labour and cash requirements of the law practice by certain types of cases or
practice areas

Develop and implement a business plan

Starting a practie involves the same financial consideration as starting a business. Financial
management is a fundamental pillar of setting up your own legal practice. An important
point to take into account is your ability to bear the financial burden alone or whether a
partnership would be a better option. Winston Churchill once said “He who fails to plan is
planning to fail”. Hence, before you set up your law practice, you should develop a business
plan and a financial plan.

Business Planning

In an article published on the New York City Bar’s website, Kravitz identifies a
business plan as “a roadmap, albeit a changing  one, with milestones to help reach goals you
already know and have yet to define”. Apart from that a business plan is also important as it
gives you an idea of the viability of your venture and serves as a potential marketing tool in
terms of financing your practice. A business plan is a written document that describes in
detail how a business—usually a new one—is going to achieve its goals. A business plan lays
out a written plan from a marketing, financial and operational viewpoint.

Business plans are important to allow a company to lay out its goals and attract
investment. They are also a way for companies to keep themselves on track going forward.
Although they're especially useful for new companies, every company should have a
business plan. Ideally, a company would revisit the plan periodically to see if goals have
been met or have changed and evolved. Sometimes, a new business plan is prepared for an
established business that is moving in a new direction. A good business plan should outline
all the costs and the downfalls of each decision a company makes. Business plans, even
among competitors in the same industry, are rarely identical. But they all tend to have the
same elements, including an executive summary of the business and a detailed description
of the business, its services and/or products. It also states how the business intends to
achieve its goals. The plan should include at least an overview of the industry of which the
business will be a part, and how it will distinguish itself from its potential competitors.

Element of Business Plan

1. Executive summary : This section outlines the company and includes the mission
statement along with any information about the company's leadership, employees,
 operations, and location. Example : What type of work you foresee your firm
engaging in, areas of specialisation?

2. Market analysis : A firm needs a good handle of the industry as well as its target
market. It will outline the competition and how it factors in the industry, along with
its strengths and weaknesses.

3. Marketing strategy : This area describes how the company will attract and keep its
customer base and how it intends to reach the consumer. This means a clear
distribution channel must be outlined.

4. Financial planning : In order to attract the party reading the business plan, the
company should include any financial planning and/or projections. Financial
statements, balance sheets, and other financial information may be included for
already-established businesses. New businesses may include targets for the first few
years of the business and any potential investors. Your financial plan should be a
projection of your budget and cash flow for the next 12 months.

5. Budget : Any good company needs to have a budget in place. This includes costs
related to staffing, development, manufacturing, marketing, and any other expenses
related to the business.

6. Office Management Plan : Human resource management, filing, time, financial,

technology management

Financial planning

Financial planning involves budgeting and managing your cash flows. It is advisable to
prepare a detailed monthly budget for at least the initial 12-month period. Note that
budgeting does not simply reflect recording down what you have spent in the past month
and using that as your yardstick. A good budget should include all expenses known and
anticipated as well as when they must be paid. Once you have a budget drawn up, you can
compare the total expenses to your anticipated revenue. Knowing when your expenses
must be paid helps you to draw up a payment plan. A payment plan can help you manage
your cash flow against your expenses thereby ensuring stable the operation of your firm. In
addition to that, a payment plan can help you to set a target of the amount of fees and
billing that you need to cover your firm’s expenses and profits made.

Element

1. Assumptions. Every projection is based on some assumptions. Pick reasonable

assumptions. You don't need to spend much time justifying your assumptions unless
they are critical to the company's success. Use the assumptions area for economic or
tax rates as well as significant numbers like sales that drive other numbers like costs.
2. Key financial indicators and financial ratios. This highlights what you have
determined to be the most important information for measuring the performance of
the company. This acts almost like an executive summary of the more detailed
financial information that follows.
3. Cash flow projection. Every business plan needs a cash flow projection. The rest of
the plan tells the story of the business and how the company will execute that plan.
The cash flow projection proves whether the plan is going to work. The timing of
when to hire staff, make significant purchases and distribute cash to owners can all
be modeled to make sure your strategy is feasible. You may find that you need to
adjust the timing or amounts of some of your strategies. Not having a projection
might cause you to make decisions or promises that you can't fulfill. The cash flow
projection shows how cash is expected to flow in and out of your business. It is an
important tool for cash flow management because it indicates when your
expenditures are too high or if you might need a short-term investment to deal with
a cash flow surplus. 
4. Projected income statements and balance sheets. Cash is king, but standard
accounting income statements and balance sheets show profitability and aspects of
the financial health of the company. Many investors and lenders calculate ratios
from the income statement and balance sheet to determine whether to give money
to the company.
5. Break-even analysis or cost-volume-profit analysis. Everything presented above is
for one scenario of outcomes. Everyone knows that it's a collection of guesses, many
of which will not come true. The cost-volume-profit analysis shows the income or
cash flows that occur with different scenarios of key assumptions, like sales or costs.

6. Budget will be important

  Prepare a detailed month by month budget for at least the initial 12 month period

  Budget should include all expenses/unexpected expenses

   Financial factors that need to be considered when setting up are:
o Establishment costs: Establishment costs are essentially start-up costs and are
therefore a one-off cost.
- Setting up premises, licences, buying equipment, market research

o Profit and loss statement: incidental costs, expenses, fees

o Cash Flow Worksheet: It is important to keep track of how much cash you will
need to keep your business running, irrespective of your expected profit and the
source of your profit.

Break-even Analysis Information Sheet: It is important to identify the point at which

you break-even. This can be done by identifying the relevant expenses and costs.

Meeting bar council requirements

There are several regulations one needs to abide by in order to set up a legal firm in
Malaysia. These regulations have been administered by our Malaysian Bar Council.

Firm Name

Ruling 2.01(1) – Variant spelling Advocate &

Ruling 2.02 – Vernacular language
Solicitor may not use variant spelling of his
Firm name in vernacular language to be
own name that does not appear in identity
approved by Bar Council.
card.
Ruling 2.03 – Restrictions
Ruling 2.01(4) – Surname
Descriptions which are not permitted in firm
Firm name may include the surname of an
name. It is not permitted to include academic
Advocate & Solicitor who is a partner or sole
qualification, awards and title in a name.
proprietor.

Location

Factors to take into consideration when deciding a location for your firm:

o Population density

o Accessibility of your office

 Ruling 7.01(3) – Person in Ruling 7.02 – Not to carry on practice in client’s

charge of Advocate & Solicitor’s office
office Not permitted to maintain office in client’s office
Every office shall be manned by which includes a housing developer’s office
an A & S
 Ruling 7.01(4) – Ruling 7.03 – Sharing office
 Unauthorized person not to
perform duties of Advocate and Sharing of office premises may be allowed
Solicitor provided the premises are partitioned off with
Shall not permit an unauthorized separate and distinct entrances with no connecting
person to carry out duties and door
functions of A & S in his/her firm
Ruling 7.04 – Advocate & Solicitor may practice
Ruling 7.01(6) – Operating from residence
hours Must check if your home can be used for
The office must be open during commercial/business purpose. Arrangement shall
usual office hours and must be be made on the premises to protect client’s
open at least 5 days a week. confidentiality.

Requirements under Bar Council Ruling: Ruling 7.01 – Maintaining an office

(1) Partners

Every partner of a firm shall be a partner of all the offices of that firm.

(2) Accountant’s report

An accountant’s report for every office maintained by a law firm shall be submitted with the
application for a practising certificate by each Advocate and Solicitor in such law firm.

(3) Person in charge of Advocate and Solicitor’s office

Except for sufficient cause no office of an Advocate and Solicitor or law firm shall be manned
solely or left under the supervision of a person not holding a valid practising certificate.

4. (4)  Unauthorized person not to perform duties of Advocate and Solicitor

No Advocate and Solicitor shall permit an Unauthorised Person to carry out the
duties and functions of an Advocate and Solicitor in his/her firm.

5. (5)  Opening a new branch office

No Advocate and Solicitor shall open a branch office without first having provided
the Bar Council with full particulars in writing in compliance with Rule 59 of the
Etiquette Rules and without obtaining the prior written approval of the Bar Council.

6. (6)  Operating hours

Every office of an Advocate and Solicitor shall normally be open during usual office
hours at least 5 days a week save for public holidays.

Ruling 7.02 – Not to carry on practice in client’s office

Ruling 7.03 – Sharing Office
Ruling 7.04 – Advocate & Solicitors may practice from his own residence Options with
regard to the office:

o The lowest cost option is through getting a minimal level of office services that provide
meeting space, phone service and mail collection

o Another choice is to share office space with an existing firm or group of solo practitioners
(Ruling 7.03)

o The third option is to lease your own space, hire employees and set up firm-wide systems.
You might end up being the one who leases an office to another lawyer to defray costs.

Name Card

Ruling 4.01 – description of position is Ruling 4.03 – Phone & fax number
not allowed The telephone and fax number of a law firm
must be stated in the name card of an Advocate
The following descriptions are not & Solicitor
permitted on a law firm’s name card:
Ruling 4.04 – Personal name card
o “Articled clerk”
o “Counsel”, “Senior Counsel” or Current office bearers, bar council members &
state bar committees may carry a separate
“Special Counsel” name card stating the office held, the term for
o “High Court Lawyer” or other which it is held and their contact numbers
without displaying their firm name.
similar description of Advocate &

Solicitor
o “Senior Advocate & Solicitor”

Ruling 4.02 – Persons permitted to

carry name card

Only Advocate & Solicitors are permitted

to carry name cards; management staffs
are allowed to carry name cards but the
designation or position of that staff must
be clearly stated.

Letterhead

 Ruling 3.03 – Managing

partner “Managing Partner” is
allowed on firm’s letterhead
and stationery.
 Ruling 3.04 – description
not allowed on letterhead

The following descriptions or

 Ruling 3.01 – only colours signifying legal statements are not permitted:
firm allowed
The use of colours is permitted provided it is o Articled clerk
compatible with the dignity of the legal o Counsel
profession. o High Court Lawyer or any
 Ruling 3.02(1) – Sole similar o Senior Advocate &
Proprietor/Partner Solicitor
Name of sole proprietor or every partner
must be stated on letterhead.  Ruling 3.05 – Logo,
 Ruling 3.02(2) – Legal Assistants elaborated or decorated script
Only an A & S holding a valid PC may be or style permitted
described as legal assistant, their names It will only be allowed if
must be distinguished from sole proprietor & compatible with dignity of legal
partners of firm (listed in categories) profession.
 Ruling 3.02(4) – A & S who left the  Ruling 3.06 – Chinese
firm Name of A & S who has left shall not seal
appear on any letterhead or stationery. Use of Chinese Seal is allowed
 Ruling 3.02(6) – Person who is not if related to firm name, is
A&S Name of any person who is not an A & S discreet, unobtrusive and
shall not appear on letterhead and compatible with dignity of
stationery. profession.
 Ruling 3.07 – Chinese
character
It is not allowed to be put in
letterhead.
 Ruling 3.08 – Telephone
and fax number

It must be stated in firm’s

letterhead.

Signboard
Ruling 2.04 – Display of nameplate and signboard

The name plate to be put in the main entrance of

Ruling 2.05 – Lighted nameplate and
the residential premises if the office is located
signboards
there.
No name plate shall be placed on any road leading
Nameplates and signboards which are
to or on any road in the vicinity of the law firm.
lighted in a manner which is not
incompatible with dignity of the legal
Cannot put any arrow or any sign indicating the
profession are permitted.
direction unless it is difficult to find the law firm
without having put such arrow or sign (such
arrows must be compatible with dignity)

Setting up the office

Deciding on whether your furniture and other office equipment is a necessity or more of a
luxury is also one of the initial consideration you would have to make as a lawyer setting up
a new practice. Your choice of furniture and other office equipment should be made in the
context of your budget and past experience

Furniture

The following is a short list and description of the basic necessities that any starting law
office will need.
Desks – Take into consideration things such as the amount of work space you need, the
number of drawers. Determine in advance whether you would be able to work with a single
desk or if you need a separate, side desk for your computer.
Chairs – This is one item where skimping is not encouraged. Since much of your working
hours may be spent planted at your chair, it is imperative to purchase a chair that is
sufficiently comfortable. It is important that your chair’s height in relation to your desk
allows for proper leg and knee room. Finally, bear in mind that your clients would also be
using the chairs in your office. Hence, the chairs in your office and waiting areas should be at
least somewhat comfortable.
Cabinets and Book Shelves - Depending on your office and the way it is set up, you may
need cabinets and/or book shelves. The various supplies listed below will need space to be
stored in, and, if you plan on having a library, it will need shelf space.[4]Apart from that,
filing cabinets are also a big necessity for your law firm. It is important that you purchase
filing cabinets that can be locked since a bulk of the information you will be storing in your
law firm would be private and confidential information. Filing cabinets with locks are also
useful for storage of other important documents you may hold on behalf of your clients
such as wills, stakeholder documents etc. Other necessities include trash cans, recycling
baskets, magazine racks for the waiting area, lamps and lighting equipment. Finally, your
staff will also need most of the above items to the extent applicable. You should try, within
reason, to make your staff happy by obtaining furniture that would suit their respective
needs.[6]

Office Equipment

Once you have all your basic furniture, the next item to take into consideration is the office
equipment you will need for your law practice.

Key items include:

 A phone system
 Computers – Apart from the physical machine itself, consider also the different and
additional types of software you may need for your law practice.
 Printers
 Copier
 Security system
 Internet connectivity
 Fax machine
 Digital Camera
 Paper shredder
 Pantry Essentials (Optional)       

Research Tools 

Third on your list should be research tools. Legal research is an inherent aspect of law
practice. Hence, it is an absolute necessity for a law practice to have either a proper library
or access to one.
  Make a list of the textbooks needed for your practice according to the area of your
practice. It is advisable to start with publications in loose-leaf form to help keep you
updated with changes in the law. Remember, the law changes all the time. Hence
textbooks are easily and quickly outdated. Therefore, it may not be cost-effective to
stock too many books on general subjects.

 Access to updated legislation – These days, with the advent of electronic data,
research is easily and more efficiently carried out on the internet and it is thus
unnecessary to invest in a set of statutes. The Bar Council Library regularly sends out
electronic updates to lawyers who are on their mailing list. In addition, providing
your email address to Bar Council also enables you to receive Bar Council Circulars
about changes in legislation and/or the Court’s practice directions.

There are various research tools providers for law practice to choose from. Most service
providers will offer a trial period for law practices to try out the product. It would be good to
consider the options for a local research engine, as the research tool would have been
adapted to suit local needs and focus more on Malaysian legislation and regulatory updates.
There are also research tools available the Bar Council Library that can be utilised for a
minimal fee.
File Management
A good file management system is essential in any legal practice whether it be a small or
large practice.  Lost, stolen and irreversibly damaged files often lead to disgruntled clients
who, when unhappy with the service they've received, would in turn take their business
away or worse, sue the practice for negligence at the slightest oversight. 
 
It is not merely the physical aspects of a file that lawyers and law practices should pay
attention to.  In most cases that involve claims against lawyers, it is the mismanagement of
the content or even the lack of content or a file, which generate claims.  In essence, having a
filing system that looks good would negate its benefits if the proper documentation is not
done and the critical information does not get recorded into the file. 
 
Whist it is quite easy to appropriate the cause of claims against lawyers on their negligence
of file handling and lack of proper systems and procedures, there are oftentimes further
root causes that inhibit a lawyer from performing his duties well.  This article aims to point
out first and foremost that lawyers are, human beings, and even the best of them are
susceptible to having "off" days.  Therefore, the Human Factor is not something that can be
swept aside and neglected for tired and stressed lawyers can make mistakes in so many
ways ie forgetting to communicate with clients, failing to lodge a court document in time,
misplacing and losing files, and what is even worse is completely missing court dates
altogether. 

Opening a file

 On opening a file, jot down the file reference number as it is important for tracing
files.
 An advocate & solicitor shall advise the client in the following matters: scope of
work, the team, firm’s commitment, fees & disbursements.
 An advocate & solicitor shall prevent conflict of interest in representing a client.

Rule 3: An advocate and solicitor shall not accept a brief if he is or would be embarrassed.
‘Embarrassment’ arises where:
the advocate and solicitor possess confidential information as a result of having previously
advised another person in regard to the same matter; there is personal relationship
between him & a party/witness in the proceedings

Rule 4: No advocate and solicitor shall accept a brief in a case where he knows or has
reason to believe that his own professional conduct is likely to be impugned.

Rule 5: No advocate and solicitor to accept brief if difficult to maintain professional

independence.
Rule 27: An advocate and solicitor shall not appear in any matter in which he is directly
pecuniarily interested.

◦ Warrant to act/ retainer

◦ Checklist for the file
◦ Date and time
◦ File ref no
◦ Disbursements charges notes
◦ Names of clients/ contact no
◦ Subject matter
◦ Clients Statement (recorded)
◦ Action to be taken and person in charge of the file
◦ Expected full fees
◦ Type of events: every conversation related to the files, meeting, discussions,
documents
◦ -separate correspondence and documents / court documents for easy
reference
◦ All filing should be done chronologically, in accordance with the date
it was sent and the date it was received

Maintaining a file
  Choose different colour’s files for different category of work. E.g. Conveyancing –
green, litigation – red etc.

  Separate correspondence, agreements, accounts & drafts.

 Record down the minutes for the files. Eg: court dates, meeting with clients,
opposing solicitors, mail confirming conversation.

 maintain a list / open files book

 adopt a proper reference system

 develop a filing structure for easier and quick access

 file letters and documents immediately

 keep all original documents in a waterproof and fireproof place

 Have a sign off procedure for removal and return of documents

 Track files movement between staff

Organizing the file

◦ Ability to prioritise (arrange accordingly)

◦ Ability to delegate

◦ no law firm can operate effectively without relying on someone else in

the firm to: take on a job, supervise a task or manage a client.

◦ However be wary (careful) of whom you delegate the responsibility of

a particular job. Make sure that the instructions are clear, detailed
and understood when any work is delegated to anyone

◦ Check the staff /lawyers work daily on what transpired in

Court and insist that you see the file

◦ Pick the right person for the work

◦ Give clear instructions and insist them write down

◦ Confirm instructions are understood

◦ Give realistic deadlines

◦ Supervise and follow up

 ◦ Conduct file audit at least twice a month

◦ Ability to keep your work area and the file tidy

◦ Ability to do the work on time without delay/ excuses

◦ Do research

Closing a file

- Bar Council Rulings 14.08: Clients’ files:

a) An Advocate and Solicitor may proceed to close a client’s file after he/she has
finished the work & the client has settled the bill.
b) When a file is closed, the client is entitled to receive the original cause papers, the
originals or file copy of all correspondence & all original or stamped copies of
documents executed by him/her.
- Confirm the matter has been completed
- Review the file to make sure all instructions from the client has been carried out
- Confirm all paper work has been done
- Inform the client that the matter has been completed and that the firm intend to
close the file
- Return all the original documents to the client
- Check for outstanding fees/ costs and any balance remaining in trust. ( bill client
accordingly)
- Transfer file to closed file section and update file register _enter date and closed file
no in closed file register
- Filing cabinets – referencing system

Time Management

Time management for lawyers is one of the most difficult tasks in a busy law practice. Many
attorneys are reluctant to consider developing a time management plan as if it is somehow
beneath them. However, having an efficient law practice and a good work/life balance
doesn't happen by accident. Smart attorneys implement a time management program into
their law practices, so they can be better at their jobs while also spending more time doing
what they enjoy.
1. Avoid the Phone or any interruption (Create a rule that for one or two hours at a set
time daily, you will not allow any interruptions – whether that’s a phone call or a knock
on the office door.)
2. Make a Prioritized To-Do List at the End of Each Day
3. Procrastinating
4. Uses of technology : You can be more efficient and therefore create more time by
simplifying your matter management and automating your calendaring, billing and
 document-building activities, while gaining the flexibility to work from anywhere. Time
well-invested in taking advantage of technology always has a huge return.

• An organisation that values time creates a work force of productive and efficient
employees
• Employees who manage time well create an organisation that is also efficient and
productive
• Time has to be appreciated – for greater productivity : greater profits, increased job
satisfaction, better working hours, reduced stress and most importantly we have
happier and motivated workers
• Always be conscious of the way we spend time, just as we need to be conscious of
the way we spend money.
• In a situation we need to control personal spending and learn to live within an
expense budget, same goes to time:
• Effective time management requires us to learn to budget our time and to live within
a time budget
• Think whether the time we do spend on a task is a actually worth that amount of
time wasted
• As a lawyers, we should invest the time we spend on a given task according to the
amount we will be able to bill the client for that task
• If we can’t bill an appropriate amount to reflect the time we have spent on a task, it
means that:
• We have spending far longer than we should to do the task
• We are not sufficiently competent to have taken the task on the first place

Time theft

Time theft occurs when an employee is paid for work that he or she did not perform. This
may be because he or she is claiming hours that he or she did not work, not performing
work while at work or otherwise receiving compensation for which they are not entitled. 
There are many ways that time theft may occur, such as the following:
1. Adding Time
Employees may write on timesheets for more hours than they actually worked, such as
claiming to have arrived at work at 7:45 a.m. when they arrived at 8 a.m. Others may wait
around after their shift so that they can punch out later and get paid even though they are
not technically working. A common way around time clocks is for an employee to ask a
friend to punch him or her in or out when that person is not on site.

2. Extended Breaks

Another way that employees may get paid for time to which they are not entitled is by
taking long breaks or lunches that are paid by employers. Likewise, employees who take
smoke breaks may take more frequent and longer breaks. 
3. Not Working
Employees may claim time for work while they are performing other tasks, such as chatting
with friends, taking personal phone calls, taking unauthorized breaks, falling asleep at work,
shopping online, playing games on their smart devices, checking personal email or using
social media. 
4. Lying
Some employees commit time theft by lying about their time cards or swipe cards. They
may claim to have forgotten or lost their swipe card so that they can add time to a paper
time sheet. 
5. Detours
In other situations, an employee may be away from the site for a work-related task, such as
business travel, traveling to a customer’s home or running an errand for an employer. While
away form the primary job site, the employee may complete a personal errand, stop for
coffee, eat or otherwise take longer for personal reasons while gone for work purposes. 

Preventing Time Theft

There may be a number of ways that employers can prevent time theft. Having checks and
balances in place can help avoid these problems. Some ways to curtail such theft include:
Add Biometric Measures
Many newer time clocks and similar devices have added biometrics to try to keep
employees more honest. These clocks may read fingerprints, handprints, irises or faces to
ensure that the person clocking in is actually the person at the time clock.
Install Cameras
Employers may install cameras in the workplace near the location where they clock in.
These cameras may record instances when an employee is clocking in for a buddy or
intentionally delaying clocking out after performing his or her work duties.
Develop Clear Policies
An employer can work with a business lawyer to develop clear policies regarding clocking in
and out procedures. These policies may be incorporated into employment handbooks and
reminder signs by the clocking in area. These policies should also outline what type of
conduct is prohibited, such as using a cell phone for personal reasons. It is important that
employees fully understand their work-related duties and know what they should be doing
when there are lags in work. 

• It is a term used to describe the ways that time is stolen from an individual/ an
organisation
• It occurs due to the following:
• Personal habits of an individual
• The habits of those around you/ your employees/ the employers
• The organisational culture of the firm
• Time theft factors:
• Perfectionism
• Impatience
• Confidence
• Carelessness
• Forgetfulness
• Knowledge
• Time needs to be preciously guarded and valued
• Time is not to be wasted
• Time is to be used wisely and productively
• Time is to be invested and not simply spent
• Time is to be allotted and controlled

(THESE WILL RESULTS IN UNNECESSARY WASTAGE OF TIME)

Diary Management

The dates and times of the events for each legal matter are recorded in a diary. A well
maintained diary is vital to the efficient operation of a legal practice. Most lawyers rely on
their diaries to ensure that they complete tasks on time and that they appear in court and
meet clients at the times arranged.

In many cases legal assistants will make a duplicate copy of a lawyer �s diary. A duplicate
diary will ensure that you are aware of the events that have been recorded for the lawyer.
This is especially important when you are planning and prioritising your tasks to meet the
deadlines documented in the lawyer�s diary. You will also find a duplicate diary useful
when you are arranging appointments for the lawyer. Remember that if you are using a
duplicate diary you must ensure that both the duplicate and the original diary are regularly
checked to ensure that the events, dates and times match. Check each diary at least once a
day.
Bare in mind that the information documented in a lawyer �s diary is subject to the same
standards of confidentiality and security as other sources of information. For example, be
very careful when providing information on the whereabouts of a lawyer as the information
you give may relate directly to a legal matter. If you are unsure as to what information you
can provide ask the lawyer involved or your supervisor.

- Many of the entries that you record in a lawyers diary will be for appointments.
Appointments are made for a range of reasons including court appearances and
client meetings.
- It is very important that the details for an appointment are accurately recorded. The
specific details that should be recorded will depend on the process followed by the
lawyer. Check with the lawyer to ensure that you record the details that are
required. Recording incorrect details about an appointment can have serious
consequences as demonstrated in the following scenario.
-  On occasions, an appointment will need to be cancelled or rearranged. If the
appointment is cancelled you need to ensure that the details are removed from the
diary and that all the parties are informed. If the lawyer has cancelled the
appointment then you need to apologise to the other parties involved. Check if your
firm has a standard procedure that should be followed when an appointment has
been cancelled. If so, ensure that you follow this procedure. If time permits a letter
indicating the cancellation along with an apology should be sent to the parties
affected.
- If an appointment needs to be rearranged then you must ensure that all the parties
are informed. Obtain an alternative time for the appointment and a reason
explaining the need for the change. When you contact the other parties involved, be
prepared to negotiate a new date and time that is suitable to all parties. Once all the
parties have agreed a suitable date and time, enter these new details in the diary.
Ensure that the original appointment has been removed. If a client or other party
requests that an appointment be rearranged be aware that it may impact on a
critical date relating to the case. Always check with the lawyer before agreeing to an
alternative date.
- The particular details that should be recorded for each event will depend on the
process followed by the lawyer. As you gain experience working with a lawyer you
will begin to understand what information they require. If you are unsure as to what
to record for a specific event then ask the lawyer.
- Recording the correct dates and times is very important. For example, if you do not
accurately detail a court appearance there could be serious consequences for both
the client and the lawyer. If a party does not appear for a court hearing then the case
will be struck out and a new court date will need to be applied for. The party will
have to pay the fees involved both for the missed date and for the new date.
Similarly, in a Conveyancing case dates can be critical for the lodgement of
 documents. For example, if documents are not lodged in time for a settlement then
the client can incur penalty costs and interest may be charged by the lending
institution involved.
- File related deadlines refer to those dates that are critical to a matter. These
deadlines must be met. Ensure that you are aware of the firms policy and
procedures on recording the details of file related deadlines.

• One of the Important item at the law office is a diary

• Failure to keep or manage diary, your daily or weekly schedule will totally be
disturbed / panicked attack / raises the blood pressure
• Therefore remember:
• Keep all appointments and court engagements in a well managed diary
• Review your diary each day so that you are not taken by surprise
• Look at what is scheduled for the following week and not only the following
day
• You cannot plan for what you are not prepared for nor can you plan for things that
you have forgotten
• If it is not recorded in your diary and you have forgotten about the date you cannot
work on the task
• The best practice is to immediately recorded the important task and dates in your
diary
• Assign a clerk to manage the diary and always allocate sometimes to supervise on
her/his work
• Is a practice for a law firm to have a t least 2 diaries:
• Office diary
• Lawyers diary
• These two diaries need to be managed simultaneously, so that the contents will be
the same all the time
• Office diary normally be kept at the office
• Lawyers diaries –will be carried by the individual lawyer

Risk Management

One of the greatest paradoxes related to practicing law is that law firms run a huge risk of
being sued. It’s not uncommon for both current and former clients to file claims against
their legal representation for a wide variety of reasons.

However, disgruntled clients only scratch the surface when it comes to the many risk factors
related to practicing law. And while these claims are very much a real threat to legal
professionals on a day-to-day basis, there are many other risks to consider. 
Whether you are an independent lawyer or a 50-person practice, the first step to putting
together a quality risk management plan is being able to understand what type of risks your
law firm could be up against in order to decrease liability exposure.

Type of Risk

1. Technology-Related Risks

2. Human Error Risks

3. Client and Colleague-Related Risks

How to manage the risk

In order to manage the everyday risks faced by attorneys, it’s first important to be able to
identify them. The first step towards achieving this should be taking a proactive approach
and providing training and education to all law firm’s employees so that they know what
risks are imminent and how to protect themselves against these risks.
- Insured your law firm : No matter how strong your law firm’s risk management
program is, there are so many risks associated with running a legal practice that
avoiding claims entirely is practically impossible. Thankfully, buying the proper
insurance coverage will help you to cover any and all gaps in your risk management
program and protect your law firm and employees when claims do arise.
- Document Everything : Obviously, making sure that every professional relationship
and endeavor is accompanied by a clear and binding contract needs to be a priority.
But beyond that, keeping detailed notes and documenting as much of your legal
process as possible is also another step you can take to protect yourself from a
variety of potential risks. Backup your emails, keep time-stamped notes, and even
record conversations whenever possible to protect yourself from hearsay.
- Provide training : Consider implementing annual risk management refresher sessions
for firm staff and attorneys. New employees receive the benefit of up-to-date formal
training and orientation sessions. The same should be offered to existing employees.
Ask task group members to assist with the presentation. Use this format as an
opportunity to remind staff of existing firm procedures and alert them to any new
procedures. Keep the sessions brief and interesting, using relatable examples for
context.
- Scan your client
- Mitigate the risk : Mitigation involves putting contingency plans in place so that if the
risky situation does materialize, you can implement your Plan B.
Example plan to ask for postponement of a case, but not sure whether the Court will
allow it or otherwise. Possible ways to mitigate the risk: be prepared for the case,
although you have intention to ask for next H date.
- Avoid the risk : In a situation where you have an outstation case that is in Penang
and your firm is in Melaka- so you have to plan and go at least one day earlier, to
avoid any unnecessary incidents that will make you be late to the Court.
- Transfer the risk : In this case, you pass the risk on to someone else. Liability is
shared amongst partners, however in some situation where you are operating a
 branch firm but the financial management is being managed separately, you have to
show it clearly in the agreement and /or to defence yourself when situation involving
breach of trust occurs
- Accept the risk : Of course, you can always do nothing. You should, though, make a
conscious, informed choice to accept the risk. This strategy works best for small risks
where the impact isn’t that big, or for risks that are unlikely to happen- e.g. did not
comply with the size of your nameplate, accept the offer without consulting client-
so you have to convince the parties that questions you.

 Benefits of an effective Risk Management Policy

o Loss prevention
o Cost savings
o Quality of working environment
o Reputation
Human resource Management
Law office management is often considered a part of human resources, or is at least
connected to it. For most law firms, law office management is how they track personnel
issues and find solutions for those issues on behalf of the human resources department. The
biggest personnel issue that law office managers usually discover is that there isn't enough
personnel on staff for the firm to operate as efficiently as it needs to. Maybe someone on
staff isn't as great of a fit as initially believed and they are only creating more problems by
staying. Maybe it's a personal relations issue, that needs to be addressed by the firm's
human resources department and was discovered through management tactics. Whatever
the circumstances are, human resources is a necessary component of law office
management and cannot be overlooked.
Financial Management
One of the vital components of a successful private legal practice is good account
management. Legal firms have a unique business process and specific rules on how
accounting records should be kept and recorded. At present, there are many software
packages for legal account management systems such as the MyCase web-based legal
practice management software and the QuickBooks legal accounting software. However, for
small-And medium-size legal firms in Malaysia, the software designed for international use
might not be suitable. The majority of local law firms are SMEs and most of the time, their
account management is done by the lawyers themselves. With limited knowledge of
accounting and business management, it is not a surprise that many legal practitioners face
difficulties in managing their accounts. LAFAMS (Law Firm Account Management System)
was developed to assist legal firms to manage their financial transactions, monitor their
performance, record cash inflow and outflow and facilitate the auditing process. The system
requires only the basic Windows operating system and is easy to operate. The report
produced by LAFAMS should be sufficient for submission to the Bar Council as evidence of
proper account-keeping by legal firms.
Stress Management
While the legal profession offers careers that can be highly rewarding, many
attorneys find themselves suffering from high levels of stress and burnout. Many factors
contribute to these high rates of stress, including long workdays, combative interactions
with opposing counsel, phone calls and meetings with clients, paperwork, and more. Some
firms are more proactive about encouraging employees to strive for work-life-balance, but
most lawyers ultimately feel pressured to bill a certain amount hours each month, making
other priorities fall by the wayside.

Unfortunately, the fast-paced work environment of a law office has led to significant issues
among legal professionals, including high rates of anxiety and depression. One study found
that lawyers suffered from depression at a rate of 3.6 times that of professionals in 100
other fields. Since those who pursue a career in the legal field tend to carry the traits of
perfectionism and pessimism, both characteristics that are helpful in excelling at their job,
they are more prone to developing anxiety issues. While there is no way to completely
eradicate stress from your life, there are many simple practices that can help manage stress
levels so that you are less likely to suffer from burnout or fatigue.

There are so many responsibilities vying for the attorney’s attention that it can be
paralyzing at the exact moment when action is needed. The lawyer’s job description can be
difficult and demanding. The deadlines are on a daily basis and thus the working hours have
to be long. This billablehour’s requirements are inescapable and time never seems to be
enough to get everything done. Office politics is also a must just like any other profession,
adding an extra layer of stress to the mix. Competition in the legal practice is fierce.
Everyone wants that promotion, dreams of making partner and getting a good office with air
conditioning and a nice view. There are no terms like friendship or loyalty, everyone is
fighting to survive. Tough cases, demanding clients, opposing counsel, rude judges, the list is
endless.
Causes of Stress
1. Personal Life
2. Taking work home
3. Deadlines
4. Working conflict
5. The lawyer personality
6. The curse of perfectionism (too detail)
Ways to overcome
1. Time management
2. Delegate
3. Plan
4. Changing our culture