Circular No 156/2022
Dated 3 June 2022
                                  
To Members of the Malaysian Bar

Prohibition of Providing Guarantee
or Indemnity in Favour of Clients or Third Parties  

It has come to the Bar Council’s attention that certain financial institutions are asking for indemnities from Members of the Bar.

We would like to draw Members’ attention to Ruling 14.28 on the prohibition of providing guarantee or indemnity in favour of clients or third parties, which came into effect on 19 Nov 2013.

Ruling 14.28 provides as follows:

14.28. Prohibition of providing guarantee in favour of clients or third parties

An Advocate and Solicitor practising as such, shall not sign any document nor give any undertaking that has the effect of guaranteeing or of indemnifying clients or third parties, as a form of indemnity, against any loss suffered.

Please refer to Circular No 247/2013 dated 19 Nov 2013 entitled “New Ruling: Prohibition of Providing Guarantee in Favour of Clients or Third Parties”.

Members are advised to be guided accordingly.

Thank you.

Anand Raj
Secretary
Malaysian Bar

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