The Solicitors Regulation Authority (SRA) requires you to collect, report and publish data regarding the diversity breakdown of your workforce every two years. The SRA is prescriptive about what data you must collect and from whom. This Practice Note explains what is required of your firm. A separate Practice Note, Diversity monitoring and data protection, explains the data protection implications of diversity monitoring. The regulatory regime There is no direct statutory requirement for you to monitor the diversity of your workforce. The SRA imposes this requirement. The three stages of diversity monitoring The three stages to the diversity monitoring obligation are: • collecting diversity data from your workforce • reporting the data to the SRA • publishing the data Are all firms required to monitor diversity? The requirement to collect, report and publish diversity statistics applies to all firms, including sole practitioners, traditional law firms and alternative business structures. If your firm is made up of various separate but related entities, you are only required to supply one set of data. The requirement

1 Background information [Insert privacy notice wording for which there is a separate precedent.] 2 [ Consent [Insert data protection consent wording for which there is a separate precedent.]] 3 Diversity questionnaire 3.1 [ Select one category that best describes your role in the organisation. Role category (please tick one) ☐ [insert role that is relevant to your organisation] ☐ [insert role that is relevant to your organisation] ☐ [insert role that is relevant to your organisation] ☐ [insert role that is relevant to your organisation] ☐ [insert role that is relevant to your organisation] ☐ [insert role that is relevant to your organisation] ☐ Prefer not to say] 3.2 Which age category are you in? Options (please tick one) ☐ 19 or under ☐ 20–29 ☐ 30–39 ☐ 40–49 ☐ 50–59 ☐ 60–69 ☐ 70+ ☐ Prefer not to say 3.3 What is your sex? Options (please tick one) ☐ Female ☐ Male ☐ Other preferred description[ Please state here: ] ☐ Prefer not to say 3.4 Is your gender identity the same as your sex registered at birth? Options (please tick one) ☐ Yes ☐ No ☐ Prefer not to say 3.5 Do you consider yourself to have a disability impairment or health condition which affects your day-to-day activities? [We collect the information in this form for monitoring purposes. If you believe you need a ‘reasonable adjustment’, then

Background information [Please insert appropriate privacy notice wording—see separate precedent.] Diversity questionnaire The data you provide will be reported to the SRA anonymously and broken down by each role category. The data will only be visible to authorised signatories or organisation contacts for our firm or those which are linked to our firm. The SRA will use the data to publish a diversity breakdown of the profession. This may be provided at a regional, sector or firm level but the SRA will not publish any information which could lead to the identification of any person. Read more about other ways the SRA will use the data. 1 Role categories Select one category that best describes your role in the firm. (Reference to solicitors includes registered foreign lawyers.) Role category Explanation Please tick one Full equity solicitor partner[/sole practitioner] This includes partners, members, directors and sole practitioners who are solicitors. Those holding these roles who are not solicitors should be recorded in the ‘Managerial role’ category below. ☐ Salaried or partial equity solicitor partner Partners, members or directors who are not solicitors should be recorded in the ‘Managerial

1 Background information 1.1 Why are we collecting diversity data? 1.1.1 We collect data on the diversity of our workforce because it is good practice to monitor the diversity of our employees in terms of age, gender, sexual orientation, ethnicity and disability. 1.1.2 We are also interested in your opinions about whether we can do more to build an inclusive culture that works for everybody. This helps us make sure activities and future plans represent the interests of everyone in the organisation. 1.2 Do you have to complete this questionnaire? 1.2.1 Completing this questionnaire is entirely voluntary. We’d like you to share as much information as you feel comfortable with, but you don’t have to answer every question. You can also answer ‘prefer not to say’ to any question you’re not comfortable with. 1.2.2 There will be no adverse consequences if you do not wish to complete this questionnaire, if you partially complete the questionnaire or if you select ‘prefer not to say’ to any question.

Diverted profits tax is a tax aimed at preventing the avoidance of UK tax by multinationals operating in the UK. See Diverted Profits Tax: guidance.

Property analysis: David Bowden, freelance independent consultant, comments on the consequences of the Court of Session’s decision in Northern Rock Asset Management v Steel and talks to Paul Parker, a barrister specialising in professional negligence law at 4 New Square, about what lessons can be learned from this case.

The proportion of company net profits paid out to equity investors.

Type of distribution made by a company to its shareholders: a company can only make a cash distribution out of available profits (Companies Act 2006, s 830) and if it's a public company, if the net asset test is satisfied (Companies Act 2006, s 831). In all cases, this is subject to any restrictions in the company's articles of association and in any other enactment, which restricts the distributions that can be made.

Article 10 of the Organisation for Economic Co-Operation and Development (OECD)’s model tax convention (MTC) is concerned with the taxation of dividends paid cross border. In particular it deals with the allocation of taxing rights between: • the state of residence of the person receiving payment, which will be referred to as the recipient state, and • the state of residence of the person making the payment, which will be referred to as the source state This Practice Note considers: • the meaning of dividend in a double tax treaty or convention (DTT) context • the model convention approach to the taxation of dividends • specific anti-treaty shopping provisions • variations on this approach in DTTs, and • the practical contexts in which an assessment of the dividend article may arise Other types of passive income, which are dealt with in similar ways by DTTs, are explained in Practice Notes: • Interest articles in double tax treaties • Royalties articles in double tax treaties Beneficial ownership Some of the benefits of all three

The ratio between a company’s earnings (net profit after tax) and the net dividend paid to shareholders, calculated as earnings per share divided by the dividend per share. So if a company has earnings per share of 8p and it pays out a dividend of 2.1p, the dividend cover is 8/2.1 = 3.80 Generally speaking, a ratio of 2 or higher is considered safe (in the sense that the company can well afford the dividend), but anything below 1.5 is risky. If the ratio is under 1, the company is using its retained earnings from a previous year to pay this year’s dividend.

See demerger'>statutory demerger.

A model used to estimate a security's value by adding all discounted future dividends of a company.