Under all LA contracts you MUST tell the LAA of:
any change in, or any changes which in aggregate result in, the identity of more than one third in number of:
(i) the persons comprising your partnership
(ii) the individual Members of LLPs of your limited liability partnership; or
(iii) the individual directors of your company;
This relates to people and NOT change in equity balance in the firm.
In a recent example one of a 5 partner firm resigned and was replaced. We calculate this as a 20% change. The LAA however decided that this involved 2 “qualifying events” and represented a 40% change in the “persons compromising your partnership” and have insisted on a full novation. (As this came about following an audit one suspects that a Contract Notice will follow for failure to notify – we will see).
