King Sturge is set to follow in the footsteps of Knight Frank and become a limited liability partnership. The firm’s 183 partners voted in favour of the change two weeks ago and King Sturge was due to announce the decision to staff last week.
The move will give King Sturge’s partners roughly the same responsibilities as a director of a limited company, reducing the liability if legal action was to be taken against the firm.
Although the move will not affect King Sturge’s day-to-day operation, the firm will be obliged to release accounts in the same way as a limited company.
King Sturge is not expected to make the switch until April 2005, coinciding with the firm’s year end.
Mark Perowne, Managing Partner at King Sturge, commented: “There have been concerns that the whole culture of the partnership would change. But our view is that the culture is not about the way the company is owned, it’s about the way that it is managed.”
Knight Frank became an LLP back in November. Since then, firms such as Cluttons and Alder King have also announced their intention to convert to LLP status.
Source: Property Week / Tim Danaher