§ Mr. CousinsTo ask the Secretary of State for Trade and Industry what plans he has to allow(a) Limited Liability Partnerships and (b) their (i) partners and (ii) shareholders to hold shares in companies to which they are supplying services. [111348]
§ Dr. HowellsRestrictions on the holding by a service provider of shares in a client company relate to the nature of the service rather than to the type of entity through which the service is delivered. In other words, the general rule would be that any such restrictions placed by statute or by a regulator on a company or a partnership would apply equally to a Limited Liability Partnership.
For example, the conditions applying to the appointment of auditors operating as LLPs will be governed by the Companies Act 1989 (which will be applied to LLPs by regulation) and by the byelaws and ethical guidelines of the appropriate supervisory body. These byelaws preclude an audit firm—and this would include LLPs—from reporting on any company in which it or any partner has a beneficial investment.
An LLP will not have shareholders.