A Level Law Practice Exam

What does the Legal Services Act 2007 allow regarding partnerships in solicitors firms?

1. Only solicitors can be partners

2. Non-lawyers can own 25% of the partnership

3. Partnerships must consist of legal professionals only

4. Only barristers can form partnerships

The correct answer is: Non-lawyers can own 25% of the partnership

The Legal Services Act 2007 introduced significant reforms in the legal services sector, particularly regarding the ownership and management of legal practices. One of the key provisions of this act is that it permits non-lawyers to have ownership stakes in solicitor firms. Specifically, non-lawyers can own up to 25% of a partnership. This change aims to encourage greater investment in legal services and increase competition, while still ensuring that the practice of law is governed by qualified solicitors who maintain a duty to the clients. The other options do not align with the provisions of the act. Only solicitors being partners or partnerships consisting solely of legal professionals would restrict access and ownership in the legal sector, counter to the aim of the act. Additionally, barristers forming partnerships does not accurately reflect the legal framework established by the act, which intentionally differentiates between solicitors and barristers regarding their respective practices. Therefore, allowing a percentage of non-lawyer ownership is a pivotal aspect of the Legal Services Act 2007.