PracticeConsultingE&Y reaches LLP landmark

E&Y reaches LLP landmark

Big five firm Ernst & Young today became the first organisation in the UK to convert its business to full limited liability status.

The move is the result of a concerted lobbying campaign by E&Y and other firms over recent years, including the threat of locating off shore to reduce the firms’ potential liabilities.

Firms have been able to register for LLP status since 6 April 2001 following the enactment of legislation introduced last year.

Under the current system for partnerships, all partners of a firm can be held ‘joint and severally’ liable for any action brought against the firm.

Conversion to LLP status is seen as a natural next step for the firm, which followed KPMG to become one of only two big five firms to publish its annual accounts.

E&Y’s chairman, Nick Land, said: ‘The introduction of LLPs is an important step forward in beginning to provide a fair and reasonable measure of protection for businesses such as ours in an increasingly litigious society.’

Land added: ‘I am convinced that this is the best option for us and I believe that LLP status will become common-place for professional services firms in the next few years.’

Links

Ernst & Young is first LLP

Profile: Nick Land – A line in the sand

Howells welcomes E&Y into LLP fold

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer