Legal Services Act 2007

82 After that section insert—

“9A Legal services bodies

(1) For the purposes of section 9, a “legal services body” means a body (corporate or unincorporate) in respect of which —

(a) the management and control condition, and

(b) the relevant lawyer condition,

are satisfied.

(2) The management and control condition is satisfied if—

(a) at least 75% of the body’s managers are legally qualified,

(b) the proportion of shares in the body held by persons who are legally qualified is at least 75%,

(c) the proportion of voting rights in the body which persons who are legally qualified are entitled to exercise, or control the exercise of, is at least 75%,

(d) all the persons with an interest in the body who are not legally qualified are managers of the body, and

(e) all the managers of the body who are not legally qualified are individuals approved by the Society as suitable to be managers of a recognised body.

(3) The Society may by rules under section 9 provide that, in relation to specified kinds of bodies, subsection (2) applies as if the references to 75% were to such greater percentage as may be specified (and different percentages may be specified for different kinds of bodies).

(4) The relevant lawyer condition is satisfied in relation to a body if at least one manager of the body is—

(a) a solicitor,

(b) a registered European lawyer, or

(c) a qualifying body.

(5) For that purpose a qualifying body is a body in respect of which—

(a) the management and control condition would be satisfied if the references in subsection (2) to persons who are legally qualified were to persons who are legally qualified by virtue of subsection (6)(a) to (c),

(b) the relevant lawyer condition is satisfied by virtue of subsection (4)(a) or (b), and

(c) the services condition is satisfied.

(6) For the purposes of this section the following are legally qualified—

(a) an authorised person who is an individual;

(b) a registered foreign lawyer (within the meaning of section 89 of the Courts and Legal Services Act 1990 (c. 41));

(c) a person entitled to pursue professional activities under a professional title to which the Directive applies in a state to which the Directive applies (other than the title of barrister or solicitor in England and Wales);

(d) an authorised person which is a body in respect of which—

(i) the services condition is satisfied, and

(ii) the management and control condition would be satisfied if the references in subsection (2) to persons who are legally qualified were to persons who are legally qualified by virtue of paragraphs (a) to (c);

(e) a body which provides professional services such as are provided by individuals who are authorised persons or lawyers of other jurisdictions, and in respect of which the management and control condition would be satisfied if the references in subsection (2) to persons who are legally qualified were to persons who are legally qualified by virtue of paragraphs (a) to (c).

(7) For the purposes of this section, the services condition is satisfied in relation to a body if the body provides only services which may be provided by a recognised body (having regard to rules under section 9(1A) and (1C)).

(8) For the purposes of this section—

• “authorised person” has the same meaning as in section 9;

• “the Directive” means Directive 98/5/EC of the European Parliament and the Council, to facilitate practice of the profession of lawyer on a permanent basis in a Member State other than that in which the qualification was obtained;

• “manager”, in relation to a body, has the meaning given by section 9;

• “recognised body” has the same meaning as in section 9;

• “registered European lawyer” has the same meaning as in section 9;

• “shares” has the same meaning as for the purposes of Part 5 of the Legal Services Act 2007 (see sections 72 and 109 of that Act);

• “specified” means specified in rules made by the Society;

and a person has an interest in a body if the person has an interest in the body for the purposes of section 9.”