NEWS


Small Firms Talk


The Small Firms Committee is a new standing committee of the Law Society. It is not a smallcommittee for lawyers. For lawyers, there is the Law Society at large. The Small Firms Committee is a committee to represent small law firms.

What is a small law firm? For some years past, a working definition of five lawyers has been used. As of 12 January 2004, there are 709 law firms with up to five lawyers each. There are 464 sole proprietors. There are 224 lawyers in two-partner firms, ie, another 112 firms with two lawyers as partners. For purely practical reasons — given the numbers involved — the Small Firms Committee is intended to cater to law firms of up to three lawyers. But I don’t think anyone really wants to be hidebound by these numbers.

The terms of reference of this Committee are:

1 Serve as a channel of communication between Council and small law firms of less than three lawyers to enhance the ability of the legal profession to serve the public.
2 To undertake such other tasks as may be reasonably necessary or incidental to achieve the first objective.

If one looks at the list of standing committees of the Council before 2004, one finds that they have been all tasked to deal with areas or aspects of, or issues occurring in, legal practice. There was none that catered to the needs of any segment of the profession. In that sense, this Committee is unique. The (unlikely) downside is that it may lead to a clamour for other segments (big firms/mid-sized firms) to be separately represented by standing committees.

Within the framework of the terms of reference, what should this Committee do? How should this Committee go about getting its work done? Based on the statistics shown below, it is likely that the small law firm will indefinitely remain a large feature of the professional landscape. However, it is impossible to know whether the sole proprietor will at some time in the future become a thing of the past.
 

 

 

Statistic 3: In terms of seniority of practice of lawyers in small firms-plus-two, starting with the senior and working your way
down to junior members of the bar, you again get inverted triangles (for sole proprietorships and for law firms with up to five
lawyers).

 

 

 

Given that large numbers of lawyers of different seniorities practise in small firms-plus-two, ie Statistic 1, Statistic 2 and part of Statistic 3 read with Statistic 5, it is safe to project that the small firm is going to be a constant feature for the foreseeable future. However, Statistic 1 gives no comfort regarding the projection for the sole proprietor because Statistic 4 shows only 25 juniors are sole proprietors. If it is correct to say that few juniors prefer to walk the beat alone based on this statistic, it could be that the sole proprietor is a dying breed.

On the other hand, there is a possible fluidity of movement between the small firm and the sole proprietor, and indeed between lawyers from even drastically different size firms, so that the fact that there are few juniors who are sole proprietors does not necessarily mean that the light would soon go out for sole proprietors. I comfort myself that the small law firms cater to a niche market — possibly to the poorer lay persons with shallower pockets; probably to clientele who prefer to deal with a lawyer they can call a friend. Such a niche market would and should, be the reason why the small firm will not disappear. As long as this niche market exists, no one can ordain him out of existence. But we then get the problems imperfectly mirrored in the analogous friendly neighbourhood provision shop when compared to the large supermarket with its conveniently wider range of, generally cheaper, goods. It is the problem of having sufficient clientele to not just meet your overheads but to earn a comfortable extra to manage a respectable standard of living perceived to be fitting for a professional man.

So what should be the scope of work of this Committee? At one level of sensitivity, I feel we should not be seen as just a lobby for small firm interests. This would lead to division within the Society. At another level of sensitivity, I feel we should be alert to issues of turf (in not taking on practice issues perceived unique to the small practice, which properly belong to other committees). That said, I hope the Committee will identify the areas from time to time in which the small law firm is in need of special assistance, such as assistance to boost the professionalism of its practitioners so they can better serve the public interest, which is what we are all about. A possible short (but not lacking in ambition) wish list (crafted as questions) follows:

• Should a small firm lawyer be allowed to attend courses/seminars for lower fees?
• How can he be helped to get access to law books/technological gadgetry which would enable him to be as efficient as the boys in the bigger firms?
• How can he keep up with changes in the law, practice and procedures in areas of interest to him without it having to cost an arm and a leg?
• If he desires to specialise and yet wishes to remain in a small firm, how can we help him — can a small firm specialise?
• Are there any prejudices towards his kind generated by the fact that proposed rule changes are on the table meant to reduce the incidence of dishonesty amongst them, particularly the sole proprietors?
• How can these prejudices be dispelled?
• Do lawyers doing so-called runners of the workshop-claim variety need any guidance on any ethical issues?
• Why are sole proprietors and small law firms not flocking to use the group law practice when it is theoretically such a ‘powerful’ tool — a versatile umbrella designed to help you make rain on the cheap and still not get drenched in red ink?
• I understand from a high of 12, we have now about five group law practices. Do they not appreciate how useful this practice mode is?

Some sole proprietors are hesitant to come on board the Committee. Possibly they have been too long alone. Since the Committee is very new, it should try to become effective as soon as possible. To be effective quickly, it has to be able to reach out to all its constituents with minimum delay. One man left out of the loop would be one man’s invaluable experience lost.

From the principle that no one should be left out of the loop, I would suggest that all lawyers in small firms should ex-officio be members of this Committee. Such membership would be free, no subscription in money or kind required. They would be the outer ring of two concentric circles of the Committee.

The inner ring would be those who volunteer to serve on the Committee. At the time of writing this article, 15 lawyers have asked to join the Committee (there follows below, a list of the Committee members that have been formalised prior to this article being published). Within the inner ring, there could be different layers/types of participation/involvement. Whilst the formal mechanism of the meeting cannot be avoided, much of the work of the Committee could be conducted via telephone and e-mail. It would be a worthy aim to get all lawyers in the small firms to feed back their views about practice experiences they have, their wish-lists and other matters.

Loo Ngan Chor
Chairman

Committee Members:
Aziz Tayabali (Aziz Tayabali & Associates)
Ang Sin Teck (Ang Sin Teck & Co)
Alagappan Arunasalam (Alagappan & Co)
Tham Teck Leng (TL Tham & Co)
Andre Arul (Arul Chew & Partners)
Bhargavan Sujatha (Bhargavan & Co)
Farah Namazie (Namazie & Co)
Heikel Bafana (Bafana & Co)
Jeanny Ng (Jeanny Ng)
Jimmy Yap (Jimmy Yap & Co)
Maniamaran Arumugam (Mani & Partners)
Mark Han Meng Kuan (Markhan)
Michael Lee (Michael Lee & Co)
Pratap Kishan (Kishan & V Suria Partnership)
Rajan Chettiar (Rajan Chettiar & Co)
Tan Siah Yong (Piah Tan & Partners)
Vytilingam Aridas (Aridas & Associates)
R S Bajwa (Bajwa & Co)
Rosalind Teo (Rosalind Teo & Co)
Mohan Das Naidu (Mohan Das Naidu & Partners)
Goh Aik Leng (Goh Aik Leng & Partners)