Staff at embattled national firm Axiom Ince have been told they can expect to be paid this month as the company continues to operate amid a period of acute uncertainty.
Salaries are due next week and the Gazette understands there has been speculation among staff about whether funds will be available to meet those commitments. There is also concern about whether salaries paid in the past three months would have to be returned if the Solicitors Regulation Authority raised questions about where the money came from.
A spokesperson for the firm said it would be ‘deeply inappropriate’ to comment on unfounded speculation, but added: ‘The wellbeing of our employees is important to us. We have been working to secure the payment of salaries as normal for the August salary run.’
The company has been under the spotlight since the SRA intervened earlier this month to suspend the practising certificates of directors Pragnesh Modhwadia, Idnan Liaqat and Shyam Mistry. It has been reported that Mistry is contesting the SRA’s intervention in the High Court. Representatives of former managing partner Modhwadia have said the investigation is at an early stage and asked that ‘premature conclusions’ are not drawn.
Meanwhile, Axiom Ince – which has hundreds of lawyers following the acquisitions of Ince Group and Plexus Law this year – has engaged accountancy firm BDO to investigate SRA allegations of wrongdoing.
The firm said this week it is not accepting new instructions while the investigation continues and admitted it will ‘likely be unable to continue in its current format’ despite continuing to trade.
Talks are ongoing with the SRA and prospective buyers for elements of the firms that could be transferred.
The Axiom spokesperson added: ‘The firm continues to have ongoing communication and cooperation with the SRA, who confirm that we can continue to operate in the normal course of business.’
If there were any issues with the client account – and there is no suggestion this is the case with Axiom – then in theory a firm could continue to operate with SRA authorisation for a limited time. The regulator has in the past given firms the opportunity to rectify shortages and would intervene only if it this was not possible or if client interests were being threatened.
There have already been exits in spite of the business continuing to operate. Fee-sharing consultancy firm Spencer West announced today that former Axiom Ince partner Sharokh Koussari had joined its employment team. Koussari had been head of employment with Axiom. He was previously a partner at DWFM Beckman before it merged with Axiom Stone in 2021.
Companies House records show that six other Axiom Ince directors had their director appointments terminated in June, although they continue to be listed as partners on the firm’s website.
Axiom DWFM has no connection with the lawyers-on-demand specialist Axiom Law.
