Results of a consultation by the Department for Business Enterprise & Regulatory Reform (BERR) looking into the application of the Companies Act for LLPs reveal that the Government is no longer planning to extend the Act to overseas LLPs.
BERR’s response to the consultation, released late last month, said that it had opted not to extend the Act to overseas LLPs due to a “lack of clear support” and consensus.
Firms including Clifford Chance, DLA Piper, Berwin Leighton Paisner as well as the Law Society all took part in the consultation, which kicked off last October.
Forcing US firms to disclose their results in
Jeremy Black (pictured), an associate partner at Deloitte, said: “The problem is that it is all very well in theory to apply the changes but difficulties will arise when you try and apply them in practice, as US LLPs are set up very differently to the
Addleshaw Goddard partnership specialist Richard Linsell added: “It is a difficult issue but my view is that English law should respect the status of US LLPs, which are under their laws partnerships and not body corporates like the UK LLPs and, therefore, should not have to file their financials.”
However, the decision not to bring the
Fox Law name partner Ronnie Fox said: “It seems to me that there should be a level playing field. My conclusion is not to require
BERR said it would continue to keep the situation under review.