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 Livingbridge invests in Visualsoft UK-based GHO Capital Partners increases investment in Envision Pharma Group Private equity firm Endless buys UK's Hovis Bowmark Capital backs buy-out of Totalmobile The Carlyle Group acquires UK developer Beechcroft Shore Capital acts as nominated adviser on £20m Helios equity raise CGE Partners invests in Aurora Energy Research Countrywide set to undergo recapitalisation with funds from Alchemy Partners Passion Capital leads investment in UK's Fertifa Gibson Dunn hires partner Matthew Nunan from Morgan Stanley

interview

Accenture's CEO and CFO interview by Leaders League Group

About us

Download

Ce site utilise des cookies. En continuant la navigation, vous acceptez nos conditions d'utilisation des cookies.
Plus d'informations

J'accepte