Advisory Opinion: 1828

Year Issued: 1998

RPC(s):

Subject: Division of fees; Lawyer owning stock in law firm personal services corporation when neither employee or shareholder of firm

The Committee researched and reviewed your inquiry concerning a lawyer owning stock in a law firm organized as a professional service corporation when that lawyer is not an employee of the corporation and does not practice law as a shareholder of it and determined the following:

The rules of the RPC Committee do not permit the Committee to respond to inquires that ask legal questions. We cannot respond to your question regarding the purchase of shares because we believe that it asks a legal question. We can state that, in our opinion, there do not appear to be any RPCs which prohibit a duly licensed lawyer from owning shares in a professional service corporation with which he is neither practicing law nor an employee. This response is premised on the information contained in your May 7, 1998 letter.

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.