Mishcon de Reya is set to bring all partners into the equity and convert to a limited liability partnership at the end of autumn 2015. The proposed new model will constitute a marked shift from the firm’s current structure, which consists of legal directors, junior (or fixed-share) partners and senior (equity) partners.
The transformation will see every partner become a form of equity partner, the current 37 become ‘senior equity partners’ and junior partners will be ‘junior equity partners’.
By removing its 65 fixed-share partners, it will bring the firm in line with HMRC rules on partnership taxation. Managing partner Kevin Gold told Legal Business: ‘The firm has already voted in principle to move to an LLP, but we’re not ready to convert yet. We expect the conversion to happen before the end of the autumn next year. The new HMRC rules have allowed us to look at this.’
‘They are all regarded as senior partners anyway,’ says Gold. ‘Now the possibility exists for them to join the partnership, we intend to invite them to join.’
sarah.downey@legalease.co.uk