Australian pioneer suspends stock exchange listing

Topics: Alternative business structures

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One of the two Australian pioneers of stock exchange-listed law firms today asked for its listing to be suspended while it prepares a downward revision of expected earnings.

Shine Corporate, owner of Shine Lawyers, said this morning that its securities will be suspended from quotation immediately. 

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On Tuesday, the firm halted trading in its shares saying it 'expected a material reduction in its full year to 2016 earnings guidance'. The formal profit warning, expected today, will now be published when the Australian Securities Exchange opens on Monday. 

In 2013 the firm expressed its intention to expand into the UK, following in the footsteps of listed Australian rival Slater and Gordon. Both businesses have since suffered slumps in their share price. Slater and Gordon's shares were today trading at A$0.54 (£0.26), down from a peak of $7.85 last year. 

Readers' comments (14)

  • How about going back to the law when I qualified. Only admitted, practising solicitors allowed to have any ownership in law firm and only through structure of unlimited partnership/sole practitioner and maximum of 20 partners in any firm?

    Is anyone seriously suggesting that the public are better served by the current system than by the old system?

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  • I used to think investing in a hotel was the best way for a lottery winner to lose everything quickly. But now I'm not so sure.

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  • Kerry,
    Politicians, who need no qualifications or experience other than an abundance of self belief, cannot resist interfering in things they do not understand. Worse than that, they exercise power without responsibility since, by the time the proverbial hits the fan, they have moved on to more lucrative occupations thanks to the contacts built up in office. Solicitors on the other hand have a deep sense of responsibility and no power. The country has moved into a short term, get-rich-quick mindset where integrity is for mugs. BUT these things go in cycles. It may be the wrong place in the cycle for you and me but the wheel will turn.

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  • No Kerry, no.

    That would be very very bad news for The Claims Handling Society, and their Member's Room - "Initiatives"...

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  • @clive wismayer 21 January 2016 03:41 pm:

    Nonsense. Its a game changer, The Banks and Insurers Legal Services Act 1998.

    Just let the money flow in as a lecturer on my LSF said (when we had proper professional exams that had a 35 - 55% failure rate.

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  • The impact when (not if I fear) one of these large entities goes pop will be horrific and then and only then will the politicians ask 'what was the regulator doing'.

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  • So Brad Haddin was clearly wrong then when, throughout the 2005 Ashes series, he repeated his mantra 'Awwww, nice area Shine'.

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  • Hear! Hear! Kerry.

    "Those were the days my friend,
    We thought they'd never end,
    We'd sing and dance
    For ever and a day..."

    Alas, and sadly, they did end.

    Pity is that so many posters on here cannot recall how things were in Eastbourne in 1970s.

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  • It's just idiocy to think that anyone can turn a personal service business into something that can be floated on the stock exchange.
    I have always been a sole practitioner and have had staff lawyers. The problem is that everyone looks at their own situation and tries to bill enough to cover their own costs to the firm. All fee earners are reluctant to work harder to line the pockets of the proprietors unless there is an incentive, such as partnership. What is the incentive to work harder to pay shareholders who don't contribute any fees? The whole concept is silly because anyone who wanted to progress in the profession would go and work somewhere where they had an opportunity to share in the profits. What this move towards outside funding represents is an attempt by partners of law firms to off-load their debt burden on unsuspecting investors who are awed by the concept of getting control of a law firm, thinking that lawyers are all rich, money generators. The truth of the matter is that many law firms around the world are struggling. You only see this, in many cases, when the firms close down or go bust. I've seen many law firms resort to fraud on junior partners, false accounting to show inflated profitability and padding of bills to clients. I've seen large law firms go bankrupt and elderly lawyers ending up with huge mortgages against their homes because they have carried debt of their practice throughout their careers. All of this in Canada where I started my practice.

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  • Anon 11.57pm...excellent post

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