LPC - Interviewing Assessment.

He's got game.

Completed my final LPC interviewing assessment today. An actor was hired by the LPC provider as the Client (interviewee) and I was the interviewer. Looking forward to the DVD.

I got a mark for wearing a suit. Nice! My scenario was regarding a partner in a partnership requiring legal advice on a possible departure form the parntership.

Here is one I prepared for in advance:

QUESTIONS (to ask Client)

Who is in the Pship?

History of the Pship?

PAgreement?

Why do they want to leave?

Client’s financial situation?

Financial position of Partnership?

Financial position of Ps?

Relationship with other Ps

Future plans of client?

Your concerns?

Your views? 

THE LAW

No Pship agreement =

Terms of the PA1890 take precedence and Pship should be run according to the PA1890

Pship agreement =

Provisions of the PAgreement can displace/ vary PA1890… PAgreement has precedence.

- Non written PAgreement

1. Everything shared equally, entitlement to capital / profits.

2. Work input – all work full time

3. No fixed duration of Pship = Pship at will.

OPTIONS

1. Retire from Pship (as it is a Pship at will)

P can retire and leave the Pship --> giving notice to the other Ps.

· Remaining Ps can agree to purchase outgoing P’s share, Pship remains (partial dissolution)

(terms would need to be negotiated between the parties).

OR

· If they don’t a Pship fully dissolved. Assets of Pship sold, and P would be entitled to their share of the capital in the pship.

Positives

+ Should realise value of the share.

+ Can force a sale of the outgoing P’s share.

Negatives

- May not get full value of the assets of the pship on sale of Pshp assets.

- Pship may be profitable in future, missing out on share of profits

-Do they really want to end the Pship?

- Ps may not be able to afford to purchase the share.

- May get a greater value for the share when the Pship is doing better in the future.

2. Indemnification against the existing debts of the firm from existing Ps.

Partners liable for debts of Pship incurred whilst they were Ps.

Partners jointly & severably liable for debts of firm

Indemnification prevents this. Creditors can still sue the ex- P but the Ps who entered into the agreement would pay.

Positives

+not liable for Pships debts and liabilities incurred whilst client was a P

Negatives

-existing Ps may not agree to this.

- existing Ps may not have money to do so

3. New Partnership Agreement

New agreement amending how it is run.

…every decision requires unanimous agreement.

Positives

+ Pship may be profitable in future, entitlement to the profits & share of capital would increase

Negatives

More debts could be incurred, which client would be liable for.

Profitability and value of assets may decrease so clients share may decrease. 

4. Do nothing.

Positives

Could turn the business around.

FOLLOW UP TASKS

1. Client Care Letter

2. Draft a Pship Agreement

3. Value the clients share in the Pship, need to look at the accounts.

4. Arrange for the retirement of the P

5. Draft indemnification agreement for P

COSTS and TIME FRAME

New PAgreement – 2 Hours – £300 + VAT – All Ps need to agree to it. Conflict of interest issue.

Value of Client’s share in Pship – 1 Hour –£150+ VAT

Arrange notice for P to retire and leave the Pship – 1 Hour – £150 + VAT

Indemnity Arrangement – 1 Hour – £150 + VAT – Ps need to agree to this.

Manage Sale of Pship Assets – if remaining Ps don’t purchase outgoing Ps share.

4 Hours - £600 + VAT