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22:45
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Originally posted by tim8wilson:
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Hi Bobspongo,Thanks for the constructive response. "The law firm has an obligation under the Corporations Act 2001 to act in shareholder's best interests but under the various legal profession acts its first duty is to the court. That is probably an academic/philosophical arguments but may show why most other common law jurisdictions haven't taken to listing law or accounting firms with the vigor Australia has."
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Law firms that are owned by partner arrangements are no different to publicly listed companies with one exception which is the continuous disclosure laws. They have the same conflict, in that their primary duty is to their court and they have to balance their clients interests, and the interests of their firm of which the partners are shareholders and they employees are remunerated on a performance basis. Publicly listing a company opens up ownership to a wider audience, but not much changes apart from keeping the market informed and making your accounts public.
(20min delay)
