LG management fails to win support to enforce partner exit

LG's management team has failed in an attempt to remove a partner after the proposed exit failed to win enough support from its partnership.

Senior partner Penny Francis (pictured), managing partner Hugh Maule and the firm's seven-strong equity partnership committee called a meeting last month to vote on the removal of a partner from the firm.

The management committee wanted the partner exited for under-performance, but failed to receive the 80% support required from partners under the terms of its partnership deed. The partner will now remain with the firm.

Maule told Legal Week: "Ultimately we had a vote in accordance with our partnership deed; there is a very high voting threshold and a number of partners abstained. We now move on from this and it is business as usual."

The decision will be seen as a setback for LG's leadership team as it is unusual for partners to vote against management proposals.

Maurice Turnor Gardner partnership specialist Richard Turnor commented: "There could be many background issues as to why a vote to remove an equity partner comes about. It is very interesting and at the very least embarrassing if partners do not agree with management on such an important issue.

"However, in [some] circumstances the partners are given an opportunity to vote, decide not to fall in line and the firm moves on with everyone perfectly happy. It depends on the circumstances."

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