|
|
| LLP
conversion
|
LLP
conversion - what is happening?
From 31st March 2008, McCash & Hunter
has converted most of its business into a limited liability
partnership (LLP)
The existing McCash & Hunter partnership will remain responsible
for work that we have done for you before 31st March 2008.
McCash & Hunter LLP has assumed responsibility for all work
done by the LLP after that date, whether on existing or new
files, and we have transferred to the LLP any money, documents
or data that we hold for you. The LLP has new terms of
business.
What is an LLP?
In the United Kingdom, LLPs are governed
by the Limited Liability Partnerships Act 2000. A UK Limited
Liability Partnership is a corporate body which has members
rather than partners or shareholders. Unlike a partnership,
it is the LLP itself which is liable for any debts of the business
and not the individual partners. Law firms with LLP status
publish their annual financial results.
Why are we converting to an LLP?
The main reason for the change is to enable
McCash & Hunter LLP to trade with limited liability.
Following conversion, members, employees and consultants of
the LLP will have no personal liability for work performed on
behalf of the LLP.
It is also important to us that we continue to operate as a
modern and efficient organisation attracting and retaining the
best talent. Conversion will help with this objective,
particularly with making the business attractive to the next
generation of partners.
Is conversion to LLP considered to be
best practice?
Yes it is. Many law firms, both large
and small, consider this to be the modern method of conducting
business and have already converted or are about to convert.
Is McCash & Hunter trying to avoid
its obligations?
No it is not. McCash & Hunter is seeking to manage the risk
of personal bankruptcy to individuals in the unlikely event
of the firm becoming insolvent, in the same way as many other
businesses. The regulatory requirements and professional standards
imposed on McCash & Hunter will remain unchanged.
Will
we still have partners?
LLPs have members, not partners.
However, in line with our competitors, for day-to-day business
we will continue to use the word "partner".
Will there be any changes in the way that we conduct business?
No. Conversion will not affect the delivery or quality
of the service that we provide to our clients, nor will
it affect our brand, the internal structure of the firm or
our day-to-day activities.
McCash & Hunter is committed to maintaining the high professional
standards on which its reputation depends.
How will conversion affect our clients?
The delivery or quality of service that we provide to you
will not change. Your principal McCash & Hunter
contacts will remain the same and we will be careful to make
sure that none of these arrangements affects your day-to-day
dealings with us. The same level of professional indemnity
cover, as was available to the partnership, remains available
to the LLP.
The only practical difference will be that members, consultants
and employees of the LLP will have no personal liability for
work performed on behalf of the LLP, except in certain limited
circumstances.
Who do I contact if I have any concerns?
If you have any questions or concerns,
please speak to your usual McCash & Hunter contact.
.
|
| |
For
sound advice
See McCash & Hunter
first |
|
