Partnerships: Balancing the blame
Over the last few months, we have seen a number of professional practices of varying sizes forced into dissolution or insolvency proceedings. Times are extremely tough and it is very possible we can expect to see the failure and collapse of several more law firms in the coming months. Salaried partners (SPs) or fixed share partners (FPs) in traditional partnerships will be largely unaware of the personal liabilities they may face in such circumstances. It is not necessarily the case that only equity partners will face such risks.
Salaried and fixed share partners could both be liable if their firm comes into financial trouble. Fergus Paine and Miguel Pereira urge partners to take steps to secure their assets
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