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Revealed: Challinors files notice to appoint administrators

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  • Most of these comments misunderstand the position and are based on unjustified assumptions about the partners and their motives. The firm is an ordinary partnership. The partners will not escape the debts. They have simply obtained a moratorium to enable an orderly sale of the business, thereby getting best value for the assets. When the administration comes to an end the creditors will still be able to pursue the partners for the firm's unpaid debts. The SRA is not intervening because the partners have acted responsibly. The administration means clients are protected from the potential harm of a disorderly wind-down.

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  • "Clients not currently at risk"? What about the client who lent them money? Why does the SRA have no concern for creditors? How can these solicitors continue to practise?

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  • The comments above are based on either a misunderstanding of the law or a failure to read the article carefully.
    Challinors is an ordinary partnership. Not an LLP or company. The administration ensures an orderly sale of the business and realisation of the assets of the business and the obtaining of a proper price for the assets. It protects clients and staff by ensuring continuity of service and of employment. It protects all creditors equally by ensuring that proper value is obtained for the business and distributed between creditors, rather than first come first served.
    It does not affect the personal liability of the partners when the administration comes to an end, unless the outcome of the administration is that all creditors have been paid. At that point all unpaid creditors will be able to go after them for any sums still unpaid.
    That is why it can be described (although not the phrase I would use) as 'good news' for clients and staff and why the SRA is not concerned. It is not good news for the partners.
    There is no indication that the partners' greed is the cause of the problem - if it was they might be expected to have become an LLP!

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