Public Concerns Pathway

Entering Into Business Relationship

The Law Society’s role is not to determine business disputes between lawyers or limited licensees and non-clients. The Law Society reviews lawyer and limited licensee conduct where there may be a conflict of interest — that is, where the lawyer or limited licensee’s personal interests conflict with their role as legal counsel.

Lawyers and limited licensees can act as both lawyer or limited licensee for a business and also be a director, shareholder or owner of the business. However, in this situation:

• they must be careful not to blur their roles;
• it must be clear which role they are acting in when performing their duties; and
• the lawyer or limited licensee should not charge legal fees for performing their duties as part of the business.

See section 3.4-1, particularly commentaries [3] and [5], of the Law Society of Saskatchewan Code of Professional Conduct for Lawyers or the Law Society of Saskatchewan Code of Professional Conduct for Limited Licensees for more information.

Lawyers or limited licensees should not enter into a business relationship with a client unless:

• the transaction is fair and reasonable to the client;
• the client consents to the transaction; and
• the client has independent legal representation with respect to the transaction.

Before any such activity the lawyer or limited licensee must, in this order:

1. tell the client about any conflicting interest or how a conflict might develop later;
2. consider whether the client should receive independent legal advice; and
3. get the client’s informed consent to the transaction.

See section 3.4-29 of the Law Society of Saskatchewan Code of Professional Conduct for Lawyers or the Law Society of Saskatchewan Code of Professional Conduct for Limited Licensees for more information.

If you believe a lawyer or limited licensee is in a conflict of interest in their business relationship with you, submit a complaint.

Common Questions