A non-practising family has been able to keep their mother’s law practice alive by converting it to an alternative business structure (ABS).
The report, published this month by specialist publication Legal Futures, shows how conversion can be used as an alternative form of succession planning.
According to the report, Maria Fogg Family Law was founded in 2011 by sole practitioner Maria Fogg.
However, the family were left in a difficult situation after her sudden death in November 2018. Neither of the sisters, Charlotte and Andrea, were qualified to take over the firm as a practising solicitor. Seemingly, the only other option was a sale.
However, the introduction of ABSs in 2008 presented a unique opportunity to the family. The Legal Services Act 2007 enabled non-lawyers to own and invest in law firms. ABSs are still overseen by the Solicitors Regulation Authority (SRA) and the Law Society and are still governed by the same rules and regulations as ‘traditional law firms’.
Commenting on their precarious position in 2018, Charlotte Fogg said: “We wanted to keep the firm going, and in the family, because we felt passionate about continuing our mother’s legacy.
“The firm always had a fantastic reputation and does really important work for vulnerable clients, with many cases involving domestic violence or child protection.”
The two sisters ultimately opted to convert the law firm into an ABS, with them acting as directors and shareholders.
According to the latest statistics, nearly 1,300 law firms now operate as an ABS.
To learn more about conversion and alternative business structures as a form of succession planning, please get in touch with our expert team.
