Governance structures—law firms

Copyright © 2025 LexisNexis
Published by a LexisNexis Practice Compliance expert
Practice notes

Governance structures—law firms

Copyright © 2025 LexisNexis

Published by a LexisNexis Practice Compliance expert

Practice notes
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The SRA Code of Conduct for Firms (Code for Firms) requires your law firm to have effective Governance structures, arrangements, systems and Controls in place to ensure, among other things, compliance by the firm, its managers and employees with the SRA’s regulatory arrangements and other applicable regulatory and legislative Requirements.

This Practice Note considers the SRA’s requirements in the Code for Firms and discusses what is meant by governance and how to create clear, transparent Governance arrangements. It reflects the requirements in the SRA Standards and Regulations.

What is governance?

There is no universally accepted definition of governance, either within the legal sector or the wider corporate world.

OECD definition

In 1999, the Organisation for Economic Co-operation and Development (OECD) published a definition of corporate governance:

‘Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By

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Jurisdiction(s):
United Kingdom
Key definition:
Governance definition
What does Governance mean?

The organisational structure and approach to exercising control over an occupational pensions scheme by its trustee board.

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