Richard Bruton (Dublin North Central, Fine Gael)

The Company Law Review Group gave in-depth consideration, over a period of four years, to the reform of partnership law, in particular to the possibility of introducing limited liability partnerships for accountants and solicitors. In general, the CLRG did not find any strong tide of opinion running in favour of introducing limited liability partnerships. However, the group indicated the issue warranted some further consideration and recommended that the Department of Jobs, Enterprise, and Innovation, and the Department of Justice and Equality should establish a committee, made up of representatives of both Departments, the CLRG, the Irish Auditing and Accounting Supervisory Authority, and the Courts Service of Ireland, to consider whether accountants and solicitors should be permitted to form limited liability partnerships or companies.

The issues at stake here are complex and wide ranging, particularly as it could involve the establishment of a new legal form which would have to apply generally and not only to the professions. The committee considering the issues will also have to take into account the taxation and transparency issues before coming to a conclusion and recommendations.

In the meantime, the Minister for Justice and Equality published the Legal Services Regulation Bill last month. That Bill includes provisions for partnerships for legal practitioners, including for multidisciplinary partnerships providing both legal and other services. The Bill also provides for the new legal services regulatory authority to be established, which will conduct a public consultation and make proposals on partnerships for the legal profession to the Minister for Justice and Equality.

The overall position on liability has been changing in recent years. Section 44 of the Civil Law (Miscellaneous Provision) Act 2008 provides that a solicitor may contract with a client to limit his or her liability to that client. Furthermore, SI 220/2010, European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations 2010, provides, among other things, for the removal of the prohibition on auditors incorporating as a limited-liability company.

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