DAC Beachcroft turns to Addleshaws for advice on overhaul of partnership deed
DACB to consult with partners as firm looks for new London office
June 02, 2017 at 04:43 AM
3 minute read
DAC Beachcroft (DACB) has called in Addleshaw Goddard to advise on an overhaul of its members' agreement, as the firm moves towards the conclusion of a wide-ranging governance and strategy review.
DACB will work with Addleshaws' professional practices head William Wastie on the review, which is being carried out as part of a wider rethink of governance at the firm, led by senior partner Virginia Clegg.
Addleshaws itself went through a similar process last year, introducing a raft of changes to its partnership deed, including a restriction on the number of partners who can leave within a year.
Since taking over the leadership of DACB in November 2015, Clegg and managing partner David Pollitt have been looking to update the firm's governance and strategy.
Specific details of changes to the members' agreement are yet to emerge, as the proposals have not yet been put to the partnership. The firm is planning to consult on the proposals during June, with a partnership vote on the reforms slated for later in the summer.
The changes to the members' agreement will be the first since legacy Beachcroft converted to a limited liability partnership (LLP) structure in 2006.
One partner said that "nothing had been ruled out" in the governance review, with issues being looked at including how partners are remunerated, what is expected of partners, non-executives and management, the roles and responsibilities of the board and executive, and the issues that require a partnership vote.
On why reforms are required, one partner said: "We are much more of an international business than when our members' agreement was put in place. We have also developed new business models since 2006, such as our claims business."
The firm's claims business – the Claims Solutions Group – was hived off into a free-standing division in 2010, with its own leadership and its own board.
DACB has also embarked on a programme of international expansion in recent years, particularly targeting Latin America, where it opened offices in Chile in 2012, Colombia in 2013 and Miami in 2015. Earlier this year, the firm signed a four-way alliance with fellow insurance-focused firms in the US, Germany and Australia.
Separately, the firm is also currently tendering for a property agent to embark on a search for new London premises.
The firm currently has two London offices – one on Fetter Lane in the west of the City, and one in Minster Court (pictured above) on Mincing Lane, in the heart of London's EC3 insurance district.
The lease on the Fetter Lane office expires in 2019, so the firm is set for a move to new premises by then, with a move to a single City site understood to be one option on the table.
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