European firms, including those from the UK, France, Belgium,
Hungary, the Czech Republic and the Baltic states, have agreed to
become a limited liability partnership (LLP).
A total of 45 European countries are said
to now be under the common control of Ernst & Young Europe LLP,
with 700 E&Y partners so far participating in the move. They
will all continue to be employed by their local legal entities.
All European practices under the partnership
will have its costs and investments shared across the area.
However, E&Y has made it clear that individual country profits
will not be pooled.
Last year, E&Y announced the formal
integration of 87 country practices spread across Europe, the
Middle East, India and Africa (EMEIA) into a single organisational
area structure from 1 July 2008.
The EMEIA region consists of more than 3,300
partners, run by a single executive team under the direction of
managing partner Mark Otty.
“We have similar [limited liability
partnership] plans for Africa which, together with India and our
Middle East umbrella entity, make up our EMEIA organisation,” an
E&Y spokesperson said.