HK Law Society Calls For Lifting Of Ban On Law Firm LLPs
The Hong Kong Law Society has called on the SAR government to lift a ban on
the formation of law firms as Limited Liability Partnerships (LLPs), arguing
that the jurisdiction needs to be brought into line with other leading legal
markets in this regard. In a recently published report on the matter, the Law Society suggested that
demand is high within the Hong Kong legal community for some form of liability
limitation in the wake of events such as the collapse of Enron and "the
ensuing Arthur Andersen debacle". The Law Society working party which compiled the report went on to suggest
that in many ways, a partnership is a more effective structure for a law firm
than the existing solicitor corporations. It also argued that the "partnership culture" likely to be engendered
by allowing legal services firms to adopt LLP status could result in increased
trust between partners, more efficient sharing of resources and rewards, and
common investment in the firms and their staff. According to reports, the specific LLP model being proposed by the working
party is based on those in place in Ontario and New York. The campaign has been welcomed by the city's legal community, which has long
believed that as a leading Asian market, Hong Kong should follow the lead of
its competitors in this area. .
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