by David Phelan March-12-2021
From 12 March 2021 onwards, Hayes solicitors will operate as a limited liability partnership (“LLP”).
Since 2019, solicitors’ partnerships have been entitled to apply under the Legal Services Act 2015 to apply to the Legal Services Regulatory Authority (“LSRA”) for authorisation to operate as an LLP. This does not create a new legal entity or partnership, it is an authorisation to operate on the basis that the personal liability of the partners of the firm is limited in certain ways (similar to other categories of professional advisors, and other commercial entities).
The key points about operating as an LLP are that, as of the 12 March 2021:
- The firm will operate as an LLP, under the name "Hayes solicitors LLP", on foot of authorisation from the LSRA to do so. It is a change in status, not a new firm or new partnership.
- As set out in Section 123 of the Legal Services Regulation Act 2015 (subject to the exceptions listed in that Section) - a partner in Hayes solicitors LLP will have no personal liability for any debts, liabilities or obligations which are incurred for the purpose of carrying on the business of the LLP (whether these are liabilities of the LLP, of himself or herself, of another partner or partners in the LLP, or of any employee, agent or representative of the LLP) and however such liability may arise.
- That what is set out in the preceding paragraph relates only to the personal liability of partners and does not prevent or restrict enforcement against the property of the LLP of any debt, liabilities or obligation.
- The Partnership Act 1890 applies to the LLP to the extent that it is not inconsistent with Chapter 3 of Part 8 of the Legal Services Regulation Act 2015.
Other than what is set out above, there will be no change in the basis upon which we provide services to clients. There will be no impact on service levels or any of our other arrangements with clients.
If you would like to discuss this or require any further information, please do not hesitate to contact me or any your usual contacts at Hayes solicitors.
David Phelan
Managing Partner
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About the Author
David Phelan
David is Head of the Commercial & Business team at Hayes solicitors and advises a number of the firm’s major corporate clients. He advises on a wide range of corporate and commercial law issues. He has expertise in advising on general corporate and commercial matters, particularly in the manufacturing, retail, aviation, sports and motor sectors, and also frequently advises clients who operate in regulated areas.