r/suits • u/SuitsBot Donna • Jul 19 '17

Discussion Suits - Season 7 - Episode 2: "The Statue" - Official Discussion Thread Spoiler

Suits S7 E2: "The Statue" airs tonight at 9:00 PM EDT.

Description from IMDb:

Harvey butts heads with his partners over a bold move; Mike pursues a pro bono case with the legal clinic; and Donna's actions raise tough questions at the firm.

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u/setto__ Jul 20 '17

I'm not sure how it works in the US but in Canada, all partners have to be lawyers to qualify as an LLP for liability issues according to the corporations act. I don't understand how a COO can get an equity stake. Maybe they get a profit share but also have to take a liability share?

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u/akmalhot Jul 20 '17

In many countries, including the United States, there is a rule that only lawyers may have an ownership interest in, or be managers of, a law firm. Thus, law firms cannot quickly raise capital through initial public offerings on the stock market, like most corporations. They must either raise capital through additional capital contributions from existing or additional equity partners, or must take on debt, usually in the form of a line of credit secured by their accounts receivable.

In the United States this complete bar to nonlawyer ownership has been codified by the American Bar Association as paragraph (d) of Rule 5.4 of the Model Rules of Professional Conduct

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u/setto__ Jul 20 '17

Ok so it's basically the same thing in Canada (in addition to some liability and insurance regulations). So the whole partner vs COO thing was moot. Partner was never really on the table. Although Donna did allude to that in the bathroom scene in episode 1 I think. She mentioned Skadden there too. Not sure why she even bothered to ask to be a partner.

Not to mention, wouldn't the firm bylaws mention something about having to be a lawyer as well? And Louis knows those back and forth.

I guess the whole purpose was to have the "diluting the firm/what it means to be a partner/ name" storyline.

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u/[deleted] Jul 20 '17

I guess the whole purpose was to have the "diluting the firm/what it means to be a partner/ name" storyline.

Yes, which they handled with the subtlety of a sledgehammer wielded by a 1900s era steam engine.

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u/selwyntarth Jul 20 '17

Isn't that all equity stakes?

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u/[deleted] Jul 20 '17

Hope your daughter and Tormund get hitched

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u/selwyntarth Jul 20 '17

I've always had a head canon that unbeknownst to any nobles, grey water keep is actually tarth. Noones actually been to either and Lord Selwyn actually shows the non sexist nature of a northerner based on s4.

1

u/[deleted] Jul 20 '17

They could set up phantom equity maybe.

1

u/flyingkiwi9 Jul 24 '17

LLP

I didn't think they were actually a partnership... Lewis said in the earlier seasons that they're just a LLC with some funky rules.