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BDO demands return of cash from ex-Halliwells partners

This transaction was unlawful for so many reasons. First, it was a breach of the LLP deed. The deed imposed an obligation on all members to act towards every other member in accordance with utmost good faith. Trousering £20 million without telling the FSM's was a clear breach (just ask yourself if this would have been a fact which a reasonably prudent FSM would have wanted to know). If taking the money out really was in good faith in the best interests of the business, why did every single one of those involved keep it a secret for so long? Second, it was a breach of the general duty to act in good faith in the best interests of the LLP. Is the LLP in a better or worse position after you take £20 million out without telling the other partners? Is this really going to promote the long term interests of the business? Let's hope that the Insolvency Service considers disqualification proceedings against those involved, or the SRA begins disciplinary proceedings. They need to ask themselves whether Is a single one of the individuals who took the money a fit and proper person to be a solicitor. Anyway, they're only being asked to pay back what they took out. Unlike all the people who were paid a fraction of what they "earned" who lost their jobs when the business went bust, and unlike the creditors who didn't get paid for what they supplied.

20-Jun-2011

9:21 am