Davidson Webber attain PLC status

CHANGING STATUS: Yorkshire firm leads the way by becoming the first private practice to change to a public limited companyA Yorkshire firm has broken...CHANGING STATUS: Yorkshire firm leads the way by becoming the first private practice to change to a public limited companyA Yorkshire firm has broken with tradition to become the first private practice solicitors to take up public limited company (PLC) status.Russell Davidson and Graeme Webber, the only partners at Harrogate-based Davidson Webber plc, became a PLC under the Companys Act 1985, section 49.The firm one of only 300 which are generally incorporated took seven months to complete the process of becoming a PLC.

Although Davidson Webber plc will not be listed on the Stock Exchange public limited companies are not obliged to do so the partners maintain that lawyers can work equally well within a listed or non-listed structure.Mr Davidson said the switch to a PLC only required the firm to satisfy a capital requirement of 50,000, and remain solvent.Both partners were adamant that the new structure was a better way forward for legal practice, and the profession.The PLC structure would suit the City very well, said Mr Webber, although he acknowledged that the structural procedures required for bigger law firms to make the switch would be greater.Potential difficulties with such a publicly owned structure would not cause problems with conflicts, said Mr Davidson.

He explained that although there may be difficulties where lawyers act for clients who own equity in the company, the ensuing problems would be much the same as they are for partnerships.Mr Davidson said the PLC vehicle gave the company more transparency and compatibility with client corporations.

This will give clients an access and an involvement with the PLC that will give them a feeling of compatibility, and further de-mystify the business of law, he added.The development comes weeks ahead of the introduction of the Limited Liability Partnership Act on 6 April, which will enable lawyers to work within an incorporated vehicle, and limit their liability.PLCs must reveal more details about their structure and accounts than the new limited liability partnerships (LLPs) will be required to do.In an atmosphere of uncertainty as to how many companies will move to become LLPs, a number of medium-sized corporate firms recently indicated that they were considering it as an option (see [2001] Gazette, 24 January, 1)Jeremy Fleming