The proposal floated by Ashurst would scrap the firm’s current quarterly distribution system in favour of a single annual payout. The planned change comes after Ashurst delayed its August distributions owed to partners until last month, when payments were finally restarted. Under the new system Ashurst partners will receive all outstanding distributions from the 2014/15 and 2015/16 financial years in May 2017, with annual payouts to follow thereafter. However, managing partner Paul Jenkins has said that the firm’s 245 equity partners will need to contribute an additional £1m between them to the firm in order to receive the full outstanding distributions for the last two financial years in May. The shake-up will require approval from 50 per cent of the partnership to go ahead, with a vote scheduled to take place next month.
Source: Legal Week
Email your news and story ideas to: [email protected]
