Business & Leadership

London firm Hodges Jones & Allen becomes first-ever wholly employee-owned law firm in UK

London-based Hodges Jones & Allen has become the first-ever wholly employee-owned UK law firm  following a change in its ownership structure

© Daily Mail

London-based Hodges Jones & Allen has become the first-ever wholly employee-owned UK law firm following a change in its ownership structure


London-based Hodges Jones & Allen has become the first-ever wholly employee-owned UK law firm following a change in its ownership structure as founding partner Patrick Allen continues to plan his succession. Allen, who stepped down as managing partner last year in favour of Vidisha Joshi, has accumulated 70% of shares in the firm over his time there and there were concerns that his eventual retirement would trigger a huge loss of capital for the firm.

 

Keen to avoid breaking up the firm into different sellable parts, and not tempted by a merger, Allen and the rest of management set up an employee ownership trust (EOT), which will manage the firm’s profits and shares on behalf of employees with bonuses dependent on profit performance. Allen and Joshi will act as trustees while finance director and business consultant Kingsley Tedder of Coach House Consultancy will act as an independent external trustee for corporate governance and compliance. As part of this novel structure, all 230 employees will be entitled to annual tax-free distributions of up to £3,600 per year.

 

EOTs were introduced by the Finance Act 2014 as part of government initiatives to promote employee ownership models. No law firm before Hodge Jones & Allen had switched to such a model, however several firms have stopped just short; Signature Litigation operates under a co-operative structure whereby every firm member has a fixed, non-discretionary and proportionate entitlement to firm profits while both Stephens Scown and listed firm Gateley plc provide employees with minority stakes through trusts.

Read the full Special Report: UK: A Centre of Legal Excellence

The UK's sophisticated economy has many drivers, with the financial and professional services industries as two of its pillars. Its legal sector stands out as world class and is relied upon not just by domestic businesses, but also by companies and individuals the world over.
Summary ‘We want 20% of senior PE professionals to be women’ UK Construction Giant Carillion Goes Into Liquidation More Than 50 Startups Became Unicorns in 2017 Clara Gaymard: “A liberated company puts people at the heart of its ambitions, not processes and progress reports” Seven Inspirational Leaders Who Rose From the Brink of Failure 8 Powerful Leaders Under the Age of 30 Brown Rudnick Bolsters Cross-border M&A and Private Equity Capabilities in London Brexit: Seizing Opportunities and Limiting Risks in Finance HFW Boosts Global Insurance Practice with London Partner Hire New UK Editor at Leaders League: Jonathan Armstrong, Former Legal 500

interview

Accenture's CEO and CFO interview by Leaders League Group

About us

Download