Law Society AGM To Vote On Referral Fee Ballot

by Robin Pilgrim, LawAndTax-News.com, London

11 June 2004

According to a report in the Law Gazette this week, a vote is to be held at the UK Law Society's annual general meeting next month to decide whether a postal ballot on the Society's decision to lift a ban on referral fees should be held.

In January, the Law Society voted by a 43-34 majority in a council meeting to allow the payment of referral fees by solicitors.

This represented a significant victory for advocates of reform within the legal profession, and was welcomed by many, who argued at the time that the Law Society was more likely to be allowed to continue in a recognisable role following the government's review of the legal sector if it approved the modernising proposal.

Under the new regime, solicitors will be permitted to enter into agreements with other businesses such as estate agents, banks, and marketing companies for the introduction of new business.

However, a group of 45 Law Society members, led by council member for sole practitioners, Tim Readman have signed a motion condemning the lifting of the ban, and calling for a postal ballot in order "to test the profession's acceptance of these decisions".

Arguing against the proposed postal ballot, president of the Law Society, Peter Williamson told the Law Gazette that:

"The new rules on referral fees offer increased protection for the public and greater clarity for the profession. They have been determined after full consultation and were agreed by the Master of the Rolls."

He continued:

"The council has, however, undertaken to review the situation after 12 months, so any request for a ballot would amount to unnecessary expenditure of the profession's money."

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