Page 157 - 2019 - Leaders in Legal Business (n)
P. 157
standards of a sophisticated and regulated profession. The lack of uniformity in the detailed
application of the regulations for the accounting profession, for example throughout the different
countries of the EU, however, weakens to a certain extent this achievement.
Vicarious liability, a specific concept of tort, is an essential doctrine beyond the borders of
common law. The necessary clarity cannot be found in recent case law. There is a tendency that
law firm networks opt for the Swiss Verein, while accounting firm networks and associations avoid
this structure and currently prefer companies limited by guarantee.
Whatever the choice of corporate structure for networks, associations, or TOPS, whether it
is a law firm, accounting firm, or multidisciplinary organisation, both statute and ethical principles
and regulations should supersede corporate veils,21 national borders, and potential loopholes to
ensure that auditor independence, client loyalty, duty of care, privilege, and strict avoidance of
conflict of interest prevail. This should be ensured for the benefit of clients and consumers,
regardless if an organisation is multidisciplinary or not.
21 LORRAINE TALBOT, CRITICAL COMPANY LAW 49 (Routledge-Cavendish, 2016): “Misuse of the corporate veil has the most pernicious
consequences for society in the context of businesses that have been organized as groups of companies. Groups of companies can be used, inter
alia, to avoid liabilities arising from the injury to persons, damage to the environment or to avoid tax.”
142
application of the regulations for the accounting profession, for example throughout the different
countries of the EU, however, weakens to a certain extent this achievement.
Vicarious liability, a specific concept of tort, is an essential doctrine beyond the borders of
common law. The necessary clarity cannot be found in recent case law. There is a tendency that
law firm networks opt for the Swiss Verein, while accounting firm networks and associations avoid
this structure and currently prefer companies limited by guarantee.
Whatever the choice of corporate structure for networks, associations, or TOPS, whether it
is a law firm, accounting firm, or multidisciplinary organisation, both statute and ethical principles
and regulations should supersede corporate veils,21 national borders, and potential loopholes to
ensure that auditor independence, client loyalty, duty of care, privilege, and strict avoidance of
conflict of interest prevail. This should be ensured for the benefit of clients and consumers,
regardless if an organisation is multidisciplinary or not.
21 LORRAINE TALBOT, CRITICAL COMPANY LAW 49 (Routledge-Cavendish, 2016): “Misuse of the corporate veil has the most pernicious
consequences for society in the context of businesses that have been organized as groups of companies. Groups of companies can be used, inter
alia, to avoid liabilities arising from the injury to persons, damage to the environment or to avoid tax.”
142
