find the latest legal job
Legal Inhouse / Lawyer / Company Secretary
Category: Other | Location: Brisbane QLD 4000
· Fantastic Company · Potential to be Part Time / Flexible Work Pattern
View details
Part Time Risk & Compliance Officer
Category: Other | Location: Brisbane QLD 4000
· Brisbane City · Flexible Part Time Hours
View details
Infrastructure Lawyer/SA
Category: Construction Law | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Global elite law firm · Dedicated Infrastructure team
View details
In-House Legal Counsel (Mid to Senior)| Regulated Markets (Energy and Gas)
Category: Generalists - In House | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Full PD on Request · Exciting High Impact Role
View details
Family Lawyer
Category: Family Law | Location: Eastern Suburbs Melbourne VIC
· Boutique Firm · Great Reputation
View details
Large firms consider incorporation

Large firms consider incorporation

LAW FIRMS Blake Dawson Waldron and Freehills have confirmed they are considering incorporation.“We will look at incorporation for a whole host of reasons,” John Atkin, managing…

LAW FIRMS Blake Dawson Waldron and Freehills have confirmed they are considering incorporation.

“We will look at incorporation for a whole host of reasons,” John Atkin, managing partner at Blake Dawson Waldron said at the Australian Financial Review Legal Reform Summit last week.

Freehills chief executive Gavin Bell has also stated that his firm may incorporate as early as next year, while Robert Milliner, chief executive partner at Mallesons Stephen Jaques has acknowledged the partnership business model may be under threat.

Atkin said incorporation was being considered in part because the partnership model was out-of-date.

“The partnership model is very unsophisticated. You have to pay the profits every year for tax reasons, which doesn’t encourage long-term investment or thinking,” he said.

Until recently, large national firms displayed little interest in incorporation as many states did not allow it. However, all states and territories except South Australia have now agreed to pass legislation allowing the incorporation of law firms.

Alex Glanfield, director-general of the New South Wales Attorney General’s Department told the summit this will prompt firms to revisit the issue.

“It remains to be seen how many of our national firms move towards incorporation once all jurisdictions have implemented the ILP provisions in the Model Bill. I suspect that most of those firms will decide that a corporate structure provides the kind of flexibility and certainty of corporate structure they have been seeking,” he said.

Incorporation will allow firms to offer financial incentives to employees such as shares — attractive to younger lawyers in particular who do not harbour partnership aspirations.

Incorporation is a prerequisite to listing on the stock exchange, however, the major law firms have not indicated they intend to float. Onerous public reporting requirements for listed companies are seen as a deterrent.

Slater & Gordon, however, made history on Monday by becoming the first law firm to list on the stock exchange.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Large firms consider incorporation
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Crowd
06:05
Anti-radicalisation programs playing ‘second fiddle’ to terrorism laws
Several academics have questioned the balance between Australia’s counterterrorism legislation and...
 William Ah Ket
06:00
‘Bamboo ceiling’ thought piece wins inaugural law prize
A paper that explores the idea of affirmative action to achieve greater diversity among members of A...
Nov 22 2017
Reduced investment protections will make robust commercial arbitration mechanisms all the more critical for investors
Promoted by Maxwell Chambers. This article discusses the current trend away from investor protect...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...