New business models

The Legal Services Regulation Act 2015 (LSRA) contemplates a range of new structures for carrying on legal business. Once the act is fully commenced, it will continue to be possible to carry on business as a sole trader, as a traditional partnership, or under one of three new contemplated structures.

• Legal partnership: a partnership formed under Irish law by written agreement comprising two or more legal practitioners, at least one of whom is a practising barrister, for the purposes of providing legal services. This would be a solicitor/barrister partnership or a barristers-only partnership,
• Multi-disciplinary practice (MDP): a partnership formed under Irish law by written agreement by two or more individuals. In this case, all that is required is that at least one of them is a legal practitioner. The purpose of the MDP must be the provision of legal services and other services,
• LLP: a partnership of solicitors or a legal partnership in respect of which an authorisation under the act has been granted.

Thus far, the enabling legislation for these new creatures has not yet been commenced. In relation to legal partnerships and MDPs, a process of consultation and reports by the authority established under the LSRA is required, and that process has commenced. No such process is required in relation to LLPs.

LLPs under the LSRA

The form of LLP adopted under the LSRA is based on the US model. General partnership law will apply, subject to the provisions of chapter 3 of part 8 of the act. That chapter sets out the limitation on the liability of a partner, the exceptions to that limitation, and the regulation and obligations of LLPs.

The result is that existing law firms will not need to convert or change their legal form. An existing partnership becomes an LLP by virtue of successfully obtaining authorisation under the act.

Paul Keane is managing partner at Reddy Charlton Solicitors, and chair of the Law Society’s LSRA task force. He explains the background to the reform, and its implications, for the Gazette.

• Read the full article in the November 2017 Gazette

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