Former Attorney General Phil Perinchief has accused Government of "arrogantly" rushing through legislation to allow bankrupt lawyers to practise in Bermuda.

He said the change in the law proposed by Attorney General Kim Wilson was being rammed down the collective throat of barristers with a "carrot and stick" promise to allow law firms to incorporate. The Bermuda Bar Amendment Act 2008, tabled in the House of Assembly on November 28, has already sparked controversy with a group of lawyers led by Deputy Opposition Leader Trevor Moniz last week calling for a special meeting of the Bar Association to discuss it.

Mr. Perinchief, who lost his Cabinet post as AG after the last General Election and has since been a vocal critic of Premier Ewart Brown, issued a statement to The Royal Gazette saying he agreed in principle with allowing bankrupt lawyers to be issued with practising certificates. But he added that any amendment to the law must include "relevant supervisory terms, conditions, limitations and restrictions".

"I do not believe in a carte blanche, open-ended licence, absent protections for the creditors and the public at large," his statement said.

"Moreover, I am not in favour of this unseemly rush that we have witnessed with this bill which, presently and arrogantly, has been tabled before the House as a fait accompli, without a timely, full and frank discussion, consultation etc., with the Bar Association, of which the present AG is an ex-officio member.

"Frankly, the Bar has had this bill rammed down its collective throat with the old carrot and stick, you scratch my back... approach."

Mr. Perinchief added: "Many of the Bar members are seeking the introduction and passing of a bill that will permit the incorporation of law firms and it is no coincidence that these two bills are coming on at the same time."

The former Progressive Labour Party senator said the amended legislation needed to stipulate that bankrupt lawyers:

• only be granted a conditional practising certificate after agreeing to pay all their earnings, less reasonable living expenses, into the bankruptcy court;

• not be allowed to hold or have access to trust accounts, assume fiduciary duties of any kind or have power of attorney;

• be stopped from practising in certain areas of the law, such as real estate, corporate and commercial, unless under the supervision of a competent bankruptcy court-appointed lawyer and until the total liquidation of debts or a reasonable compromise thereof determined by the bankruptcy court;

• give full disclosure of all financial dealings to the bankruptcy court;

• undergo a review and audit every six months, from the certificate being issued until the liquidation of debts; and

• have their certificate revoked if they default on any of the restrictions.

Senator Wilson said in a letter to the Bar Association last month that conditions would be imposed, including preventing bankrupt lawyers from receiving trust funds or operating a trust account or practicing real estate matters.

She did not respond to requests for comment last week but has previously said that the Bar Council, the elected executive board of the Bar Association, indicated to her during consultation that they consented to the amendment. "I am satisfied that the support of the Bar Council has been sought and obtained," she said.