Simon Young puts ABSs under the spotlight
This article focuses on the opening up of the legal market with the creation by the Legal Services Act 2007 (the Act) of alternative business structures (ABSs), which in turn will include the possibility of multi disciplinary practices (MDPs). In the language of the Act, and Pt 5 in particular, an ABS is properly called a “licensable body”.
Such a body is one which is to carry on reserved legal activities (and possibly other activities) in which any person who is not “authorised”, ie not a lawyer, either is a manager, or holds an interest.
Holding an interest includes having a share in the body (including rights to share in capital or profits); and a “manager” is a partner in a traditional partnership, a member of a limited liability partnership (LLP), or a director of a limited company. In short therefore any business delivering reserved legal services, unless all interests are held by lawyers, and all managers are lawyers, will be licensable. That will therefore
