Law Society of Scotland
This information reflects the Society's web site at the date you downloaded or printed it and you should check at www.lawscot.org.uk to see if it is still current.

Society to call SGM in March

The Society President, Ian Smart, said: “The Society has now received a requisition to hold a special general meeting (SGM), to consider key aspects of plans to reform the legal services market, particularly external ownership.

“The requisition, delivered by the Scottish Law Agents Society (SLAS), is significantly broader than expected.

“Rather than aiming ‘to ascertain the profession’s views on the issue of the external ownership of law practices’, as stated earlier this week, the motion, if passed, would change the Society’s policy from supporting to opposing all forms of alternative business structures.

“The motion as it is worded, may also lead to issues relating to in-house lawyers who work in the reserved areas of practice. Currently around a quarter of the Society’s members work in-house in local authorities, government, the Crown Office and business.”

“The Bill is likely to bring about major change in the delivery of legal services so we appreciate the desire for a debate but to try and completely reverse the Society’s position two years on from its original adoption and half way through the progress of the Scottish Parliament legislative process is not, in my opinion, a realistic way forward.”

“Instead, I would prefer to concentrate on the best way to provide clients with the legal services they need and allow solicitors from different sectors of the profession to continue to provide the client protections which are unique to the Scottish experience.

“I encourage all members of the profession to get involved in the debate at roadshows, the SGM and on the consultation and have their say.” he concluded.

25 February 2010

Additional Information

The SLAS motion is: "We, the undersigned, hereby make requisition to the
Law Society of Scotland in terms of Section 12 (3) of the Constitution of the Law Society of Scotland further to Section 1 of the Solicitors (Scotland) Act, 1980 to convene a Special General Meeting of the Law Society of Scotland in order that we might move the Society to consider and make a resolution in the following terms:-

The members of the Law Society of Scotland in general meeting find that- It is essential in the public interest in the retention of an independent legal profession that the ownership of any business authorised to carry out work which is reserved to persons qualified to practise as solicitors in terms of the Solicitors (Scotland) Act, 1980, should be vested in persons so qualified,

And call upon the Scottish Parliament to set out and maintain that position in the statutes and regulations of the Scottish Parliament and, in particular, to amend the terms of the Legal Services (Scotland) Bill, presently before Parliament to that effect."

As a membership body, policy decisions are made by the Society's 10,000+ members at general meetings and meetings of its ruling Council.

The Society’s current policy to support alternative business structures was decided by its members at an annual general meeting in May 2008.

The new structures are proposed in the Scottish Government’s Legal Services (Scotland) Bill, which is at Stage 1 in the Scottish Parliament.

The Legal Services (Scotland) Bill is permissive legislation which would allow solicitors to provide legal services through a range of different business models which are currently prohibited – such as allowing non-solicitor partners, working in partnership with other professionals (multi-disciplinary practices (MDPs), and external ownership. Traditionally structured solicitor practices will remain.

Solicitors’ firms will continue to be regulated by the Society which also aims to regulate new Licensed Legal Services Providers.

The Bill was introduced by the Scottish Government to the Scottish Parliament on 30 September 2009. The stage 1 debate is due to take place towards the end of March.