Taylor Wessing to move to full equity partnership
HMRC tax change prompts firm to bring 50 fixed share partners into its UK equity structure
March 24, 2015 at 08:03 PM
3 minute read
Taylor Wessing is set to become an all equity UK partnership in a move that will nearly double the number of partners with an equity stake in the firm.
After more than a year of consultation on the issue, 95% of partners voted yes to the proposal last week.
Of Taylor Wessing's 102 UK partners, 52 currently have full equity status. The firm's 50 fixed share partners will transition into the equity partnership on 1 May.
It is understood that once the move has been completed there will be no distinction in terms of banding or preference between current equity partners and those who were remunerated on a fixed share basis.
Though there will not be a firm wide capital call to implement the change, fixed share partners will face a modest increase amount of capital they have to put into the firm in order to bring them fully in line with their proportionate share of equity contributions.
Managing partner Tim Eyles said the move was a "very exciting change" that he hoped would "improve the sense of belonging [at Taylor Wessing]".
He added: "We like the idea of giving everyone the same base interest in and sense of ownership of the firm, so that we can deliver the best possible service to clients."
The move to an all equity partnership in the UK will not affect the firm's superpointer style profit pool, which distributes profit to its global offices, and moving more people into the equity will not affect the structure of the firm's equity ladder, according to Eyles.
The move to a full equity partnership was prompted, in part, by HMRC rules that came in to effect in April 2014 under which non-equity partners have to contribute at least 25% of their fixed share salary in capital to be classed as partners rather than staff, allowing the firm to avoid paying national insurance contributions.
A partner at the firm told Legal Week: "There was frustration in a lot of firms around the short time frame we were given by HMRC…but we'd moved so far, so we started thinking we should be doing something more than that and going the whole way."
However, discussions were being held on the move to a full equity partnership prior to that rule change.
Taylor Wessing's most recent accounts show that partners more than doubled their overall capital contributions to the firm during the last financial year on the back of HMRC's new policy being implemented.
"The HMRC change was the catalyst, but we would like to think we would have come to this conclusion anyway," says Eyles.
The firm set up a committee to review the firm's structure in February last year, on which half of the members were fixed share partners and the other half full equity partners. The consultation process involved full partnership meetings, along with a number of group discussions and one to one sessions.
Other firms to have moved to an all-equity structure in the past include Akin Gump, which changed its firm-wide structure last January, and DLA Piper's non-US business, which took on an extra £30m in partner capital as a result of the move to an all-equity partnership structure in May 2012.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTed Olson, Legal 'Titan' and Former US Solicitor General Who Argued Bush v. Gore, Dies
Baker McKenzie, Greenberg Traurig, Clyde & Co. Expand In Middle East
3 minute readTrending Stories
- 1Daniel Habib to Serve as Next Attorney-in-Charge of NY Federal Defender Appeals Unit
- 2Protecting Attorney-Client Privilege in the Modern Age of Communications
- 3High-Profile Sidley M&A Partner Heads to Covington
- 4Stars and Gripes: Firms Need a 'Superstar Culture' to Crack the U.S. Market
- 5BCLP Exploring Merger Prospects as Profitability Lags, Partnership Shrinks
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250