Society Council decide to hold referendum on legal services reform
The Society President, Ian Smart, said: “The Council of the Society met today (Friday 5 March) to discuss its response to the requisition of a Special General Meeting. The motion before the SGM proposes overturning the Society’s existing policy, which supports alternative business structures, as decided by the solicitors’ profession at the 2008 AGM. (Follow the link for more details on the
SGM)
“The Council was conscious that the critics of that decision continued to claim that the vote was not representative of the profession. The Council decided that another general meeting would not resolve the issue and concluded that a referendum of all members will confirm that the 2008 vote reflected the clear majority view of the profession.
“Discussions will take place with the Scottish Law Agents Society about the referendum and the consequences for the SGM. We will now work on the arrangements for the referendum, including the wording of any questions. It is expected that the process will be completed within a month. We will keep members informed of developments.
“In the meantime, the Society will continue to promote amendments to the Legal Services (Scotland) Bill to ensure the independence of the legal profession and maintain the high standards which have historically served both the client and the profession so well.”
5 March, 2010
Additional Information:
Article 24 of the Society’s constitution allows the Council to call a referendum.
On 25 February, the Scottish Law Agents Society called a Special General Meeting to debate a motion that proposes reversing the Law Society’s policy supporting alternative business structures, which are also called licensed legal services providers. The SGM will be held on 25 March at Murrayfield Stadium in Edinburgh. The papers for the meeting are due to be sent to members on Monday 8 March.
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.
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 in mid-April.
The Society is currently consulting with our members on the types of new business models that should be permitted and how they would be regulated.
Solicitors’ firms will continue to be regulated by the Society which also aims to regulate new Licensed Legal Services Providers.