PracticeConsultingGreen light for Limited Liability Bill

Green light for Limited Liability Bill

Up to 90,000 firms have 'expressed an interest' in changing their status to a limited liability partnership, legislation for which was given Royal Assent at the end of last week.

The figure includes firms from accountancy, law and other sectors and appears to contradict news from Companies House which concluded recently that subscription to the new legal vehicle would only be in the ‘low thousands’.

The Department of Trade and Industry said the 90,000 had emerged from a consultation process and could only be considered a ‘rough figure’. A spokesman said the true response may only be half as big.

Of the big accountancy firms only Ernst & Young has given anything like a commitment to adopt the new status while the others remain cautious and continue to reserve their judgement until a full examination of the new legislation has taken place.

However, some indication emerged this week that small firms, at least, are ignoring the Bill.

Peter Mitchell, chairman of the Small Practitioners’ Association, said the LLP status was only useful for the large firms where the risk exposure was sufficiently large. ‘For small practices the usual insurance is more than adequate,’ he said.

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