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Law Society of Scotland to hold SGM on new business models

Posted: 23 February 2010 | Provided by: Scottish Legal News | Browse more news

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The Law Society of Scotland has confirmed that it will hold a special general meeting to debate external ownership of alternative business structures once it has received a requisition from the Scottish Law Agents Society.

SLAS has confirmed that it is to present the Law Society with a requisition for an SGM on the issue of legal services reform as outlined in the Legal Services (Scotland) Bill, which is at stage 1 in the Scottish Parliament.

Law Society president, Ian Smart said the time was right to debate what business models should be permitted under the draft legislation and how they should be regulated as the legislation to permit Licensed Legal Services Providers (LPs) was well underway.

The Law Society has published a consultation asking for members' views and comments on possible business models and the regulatory structure.

It has also organised a series of roadshows across Scotland for members and is promoting amendments to the bill to ensure that the profession's core values, independence of the profession and access to justice are maintained while demanding a level playing field in the Scottish marketplace.

Mr Smart said: "The bill marks potential for significant change for the profession. The consultation, roadshows and now the SGM provide the opportunity to enhance that debate and ensure that the profession work together to shape its future.

"As a membership body, policy decisions are made by the society's members at general meetings and council meetings.

"The debate at the SGM will set the profession and so the society's policy on external ownership of ABSs. The society will promote that policy as it did with ABS decision at its 2008 AGM.

"Members' responses to the consultation will help develop a policy paper due to be debated at the society's AGM in May."

He added: "Some members are looking at options around external ownership. Others are not opposed to ABSs, but believe that only an LP model with majority solicitor ownership should be permitted. Some are undecided about which model will best suit their business and most importantly for them, their clients.

"Many firms intend to keep their current business model and it is likely that the take up of the new business structures will be gradual. Many in-house practitioners who work as employed solicitors also have much to contribute to this aspect of the debate."

Mr Smart said the society would continue to encourage and support its members to debate the future of legal services and make decisions on the best way to provide clients with the legal services they require in the current marketplace while ensuring that standards and the core values of the profession are maintained.