Merger of two sole principal practices

Scenario

AB & Co. (Principal Mr. AB) and XY Solicitors (Principal Ms XY) have decided to merge their firms and create a new partnership firm operating under the style & title B.Y Solicitors. In this scenario, the new partnership firm will operate its principal office from the premises now occupied by XY Solicitors and a branch office from the premises now occupied by AB & Co.

Note, all matters relating to the agreement between the parties for the merger is a matter of contract between them.  

The firms contact the Law Society (firms@lawsociety.ie) and advise the Law Society of their plans. The Law Society responds to both parties with its requirements.  

Requirements

To achieve the desired outcomes, both sole principal practices must cease following their merger and the new merged firm must commence as a partnership practice. â¶Ä¯&²Ô²ú²õ±è;

Cessation requirements – to be confirmed/completed by the principal of AB & Co. (Mr. AB) and XY Solicitors (Ms XY)

  1. Confirm the date of the merger. This will be the date directly after the cessation date of both firms (e.g. both firms cease on 30 June and the merged firm Y Solicitors. commences on 1 July). 
  2. Confirm that all files (including closed files) from your sole principal practice are transferring to the merged firm Y Solicitors.
  3. Confirm that all client monies from your sole principal practice are transferring to the merged firm Y Solicitors.
  4. Confirm that the merged firm Y Solicitors is a succeeding practice to your sole principal practice. Note, under the succeeding practice rules, a succeeding practice is one that is conducted by a partnership in which the sole practitioner conducting the preceding practice is a partner and where no other person has been held out as a successor to the preceding practice.  
  5. File a closing accountant’s report to the date your existing sole principal practice last received, held, controlled or paid clients’ monies (i.e. the date of cessation). This report should be filed with the Law Society within three months following the date of cessation. All queries relating to this or other financial matters should be directed to the Law Society’s Financial Regulation section (financialregulation@lawsociety.ie). â¶Ä¯

Commencement requirements for B.Y Solicitors to be confirmed/completed by one of the partners of B.Y Solicitors. (Mr. AB or Ms. XY)

  1. Confirm the date of the merger. 
  2. Confirm that all files (including closed files) from AB & Co. and XY Solicitors transferred to the merged firm Y Solicitors. 
  3. Confirm that all client monies from AB & Co. and XY Solicitors transferred to the merged firm Y Solicitors.
  4. Confirm that Y Solicitors is the succeeding practice to the firms AB & Co., and XY Solicitors and provide confirmation from your PII broker/provider that they are aware of this, and cover is being provided on this basis.  
  5. Complete and return the Law Society’s Commencement in Practice form. 

    Please ensure you confirm the status of all solicitors employed in the firm – i.e. Principal/Partner/Assistant Solicitor or Consultant Solicitor. 

    Please ensure you include a personal firm email address for each solicitor in the firm (e.g. AB@BY-SOLS.IE) as the practicing certificate application process now requires a personal firm email address for all solicitors associated with the firm. You should also include the firm’s general email address (e.info@BY-SOLS.IE). &²Ô²ú²õ±è;

  6. Have your broker complete and return the Law Society’s Confirmation of PII Cover form or alternatively return a copy of your broker’s bespoke Confirmation of PII Cover form.  More information relating to PII can be found in the Solicitor Section at lawsociety.ie.      
  7. Forward a copy of your headed notepaper and ensure it is in accordance with the provisions of . â¶Ä¯&²Ô²ú²õ±è;
  8. Note that post-commencement, you are required to have your broker log into the Law Society’s PII Portal and confirm cover within 3 working days of receiving your new Firm Number.     
  9. With regards to selecting your financial year end date please note that it should be within one year of the commencement date and that the report should be provided to the Law Society not later than five months after that date. 

Once in receipt of the required confirmations and documentation, the Law Society will proceed to cease the sole principal practices AB & Co. and XY Solicitors. The existing firm numbers will become legacy firm numbers. A new firm number for the merged firm B.Y Solicitors. Solicitors will issue and the Law Society’s records will reflect that Mr. AB and Ms. XY are partners in this firm. Mr. AB will be linked to the branch office and Ms. XY will be linked with the principal office. The firm B.Y Solicitors. will be noted on the Law Society’s records as the succeeding practice to AB & Co. and XY Solicitors.