Stuart Fuller told Big Law Business that the firm needed to pay its UK taxes on behalf of partners in July and that $18.2 million payment won’t be made until the end of the summer.
The Global Legal Post reported last week that the 2,000 lawyer firm had deferred profit distributions to partners after asking them to contribute capital to boost the firm’s EUME capital base.
Monthly draws
Mr Fuller clarified that partners are still receiving their monthly draws, but they also earn profit on top of their draws based on the previous year’s income every month and it is this that is being deferred.
He declined to confirm that July would be the last month that partners would find their profits deferred, but stressed that they would be paid profits in due time.
‘We want to be making those distributions every month by having the working capital position of the firm and our cash flow management where they need to be — that’s what we’re addressing right now,’ he said.
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