Every corporate lawyer worth their salt is prepared for the changes that the introduction of the Companies Act 2006 will have on their clients. But as this Partnerships Special Report points out, far fewer lawyers have considered the impact that the changes will have on their own businesses.
The Companies Act 2006 will have a direct impact on limited-liability partnerships (LLPs) – the business structure of choice for many law firms – when it is implemented for the structures in October 2008. Some of the changes will be merely administrative yet other far more transformative requirements, such as directors’ duties, may also be imposed.
This report examines the potential impact of the regulation changes. It also reviews how firms should deal with the thorny issue of de-equitisation of partners and – on the flip side – the implications of allowing new entrants into a partnerships’ equity.