Burges Salmon has responded to a request from the Department for Business Innovation and Skills (BIS) for comments on a proposal following its response in April to the Transparency and Trust discussion paper.
In its response to the Transparency and Trust discussion paper, BIS appears to be contemplating an outright prohibition on the ability of companies and other corporate bodies to become members of an LLP. The suggestion arose as a consequence of the Government pursuing a default prohibition (subject to limited exceptions) on corporate directors of limited companies generally.
Our response identifies the problems the proposed prohibition on corporate members of an LLP would cause for many of our clients which are either LLPs with corporate members or corporate members of LLPs.