Q&As

Can a law firm accept equity in a client company in lieu of legal fees for non-contentious legal work?

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Published by a ÀÏ˾»úÎçÒ¹¸£Àû Practice Compliance expert
Published on: 22 February 2022
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We are not aware of any specific prohibition on law firms accepting Equity in a client company in lieu of legal Fees for non-contentious legal work.

We also note this practice was specifically referred to in guidance to rule 3 (Conflict of interests) of the 2007 Solicitors' Code of conduct (no longer in force):

‘You are free to negotiate

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Jurisdiction(s):
United Kingdom
Key definition:
Equity definition
What does Equity mean?

Capital that is used to finance companies in the form of ordinary share capital as opposed to debt finance. The term is also sometimes used to describe preference shares or subordinated loan capital contributed by equity investors (commonly known as quasi-equity) to distinguish it from third party debt.

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