A
law firm is a business entity formed by one or more
lawyers to engage in the practice of law. Law firms
are organized in a variety of ways, depending on the
jurisdiction in which the firm practices. In many
countries, including the United States and the United
Kingdom, there is a rule that only lawyers may have
an ownership interest in, or be managers of, a law
firm. Thus, law firms cannot quickly raise capital
through initial public offerings on the stock market,
like most corporations. In the United States this
rule is promulgated by the American Bar Association
and adhered to in almost all U.S. jurisdictions.
The rule was created in order to prevent conflicts
of interest. In the adversarial system of justice,
a lawyer has a duty to be a zealous and loyal advocate
on behalf of the client. Also, as an officer of the
court, a lawyer has a duty to be honest and to not
file frivolous cases. A lawyer working as a shareholder-employee
of a publicly traded law firm would be strongly tempted
to evaluate decisions in terms of their effect on
the stock price and the shareholders, which would
directly conflict with the lawyer's duties to the
client and to the courts. |
|
Welcome...
Download Programs Here!
