s 107 Prohibition of certain stipulations
107.—(1) A solicitor must not —(a) purchase or agree to purchase the interest or any part of the interest of his or her client or of any party in any suit, action or other contentious proceeding brought or to be brought or maintained; or (b) enter into any agreement by which he or she is retained or employed to prosecute any suit or action or other contentious proceeding which stipulates for or contemplates payment only in the event of success in that suit, action or proceeding. (2) Nothing in this Act is to be construed to give validity to any purchase or agreement prohibited by subsection (1) or to any disposition, contract, settlement, conveyance, delivery, dealing or transfer which is void or invalid against —(a) the Official Assignee under the law relating to bankruptcy; (b) a liquidator or receiver under the law relating to the winding up of companies or limited liability partnerships; or (c) a creditor in any composition. (3) A solicitor is, despite any provision of this Act, subject to the law of maintenance and champerty like any other person. (3A) To avoid doubt, this section does not prevent a solicitor from —(a) introducing or referring a Third‑Party Funder to the solicitor’s client, so long as the solicitor does not receive any direct financial benefit from the introduction or referral; (b) advising on or drafting a third‑party funding contract for the solicitor’s client or negotiating the contract on behalf of the client; and (c) acting on behalf of the solicitor’s client in any dispute arising out of the third‑party funding contract.[2/2017] (3AA) This section does not prevent a solicitor from entering into a conditional fee agreement that complies with Part 8A.[Act 8 of 2022 wef 04/05/2022] (3B) In subsection (3A) —“direct financial benefit” does not include any fee, disbursement or expense payable by the solicitor’s client for the provision of legal services by the solicitor to the client; “Third‑Party Funder” and “third‑party funding contract” have the meanings given by section 5B of the Civil Law Act 1909.[2/2017] (4) This section applies, with the necessary modifications, to a law corporation or a limited liability law partnership.