Ethics and Professional Conduct
A commercial company has asked a solicitor to represent them in the potential acquisition of a rival business. However, the solicitor owns shares in the rival business, which means that if the deal goes through, they will make a significant profit. The solicitor informs the company about this potential conflict of interest and suggests that they seek independent advice on the matter. The company agrees to do so.
Should the solicitor represent the company given the circumstances?
A commercial company has asked a solicitor to represent them in the potential acquisition of a rival business. However, the solicitor owns shares in the rival business, which means that if the deal goes through, they will make a significant profit. The solicitor informs the company about this potential conflict of interest and suggests that they seek independent advice on the matter. The company agrees to do so.
Should the solicitor represent the company given the circumstances?
No, because this is an own interest conflict and there is an absolute prohibition on acting.
(A) As per the legal code of conduct, a solicitor is not allowed to represent a client if there is a conflict of interest or if there is a significant risk of one. Such a conflict arises when the solicitor is likely to benefit financially by following the client's instructions. This is a strict rule, and there are no exceptions to it.
Therefore, the statements (B), (C), (D), and (E) are incorrect.
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