Accountants and lawyers could be allowed to set up limited liability partnerships within two years, as the Lord Chancellor is said to be backing plans to introduce the legislation into the Queen’s speech this autumn.
The bill would mean only a firm’s assets and those of a negligent partner would be at risk in a damages claim, lessening the risk to the assets of non-negligent partners.
The change has been on the cards since last year, and is thought to be at draft legislation stage, but the DTI refused to confirm legislation would be ready in time for the Queen’s Speech.
Accountancy and law industry bodies have been leading the campaign for the change. An ACCA spokesman said: ‘At present the state of the law is highly unsatisfactory.’
‘We’re happy to see the introduction of LLPs, but they have to be applicable to firms of all sizes.’
The English ICA also backs the move, but says new laws should be introduced to regulate the new LLPs.
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