LLP Group Governance

The LLP Group Board (the Board) recognises the benefits of a modern and efficient governance structure. High governance standards provide clarity and rigour but also enable speed and efficiency in the decision-making processes of the Group. The Group’s parent, DAC Beachcroft LLP (the LLP), is a partnership, but the Group governance framework has voluntarily been modelled, where appropriate and applicable, on the FRC’s UK Corporate Governance Code. Not being a listed Group, the governance description that follows has been set out against the Wates Principles in respect of the year ended 30 April 2025 and is updated annually.

Our governance has been approved by the equity partners (Members) of the LLP and is set out in the Group’s constitutional documentation. Whilst a small number of decisions remain reserved to the Members, the Board has responsibility for the management of the Group. Anything that is not reserved to Members, the Board, or its committees is a matter for the Managing Partner who is supported by the Group Executive (the Executive).

Whilst the members of the Board are not statutory directors, there are subsidiary statutory directors within the Group. As a matter of good practice and to ensure an aligned consideration of stakeholder interests across the Group, the duty in s172 of the Companies Act to promote the success of the company has been adapted for use by the Board. The Board recognises the importance of ongoing two-way dialogue with our colleagues and other stakeholders, illustrated by the high levels of stakeholder engagement described below under Principle 6.

Principle 1: Purpose and leadership - an effective board develops and promotes the purpose of a company and ensures that its values, strategy and culture align with that purpose.

The Group’s Purpose, Vision and Cultural Principles have been approved by the Board and published on the Group’s website. The Group’s Purpose is to help our clients and our colleagues succeed, creating sustainable value.

Development of strategy is undertaken by the Executive and Board in alignment with the Purpose, Vision and Cultural Principles, as well as with an embedded consideration of risk. Our Purpose, Vision and Cultural Principles have also been written into the role descriptions of all Board members and they have been embedded across the organisation via training, visual reminders and an ongoing recognition of good practice.

Serving as a protection of our values, there is a whistleblowing procedure in place through which colleagues can raise concerns and report any misconduct, wrongdoing, breaches of law or regulations and unethical practice. The Board oversees the management of the reputation of the Group. The strength of the Purpose, Vision and Cultural Principles underpins this together with an embedded consideration of reputational risks in matters considered by the Executive and the Board.

Principle 2: Board composition - effective board composition requires an effective chair and a balance of skills, backgrounds, experience and knowledge, with individual directors having sufficient capacity to make a valuable contribution. The size of a board should be guided by the scale and complexity of the company.

The Board has ten members:

• the Senior Partner (the Chair),
• the Managing Partner,
• the Chief Financial Officer,
• five elected Board members, and
• two independent non-executive Board members (NEDs).

The Senior Partner, Managing Partner and elected Board members are all Members. The non-executive roles are appointed by the Board. Whilst the selection of most of the Board members is by election by the Members, the Remuneration and Nomination Committee and the Board do consider the particular skills needed on the Board in advance of elections and communicate these to the Members.

Equity, Diversity & Inclusion (ED&I) is a fundamental element of our People Strategy and the Group firmly believes that diversity of experience, perspective and thinking is critical to its ability to create sustainable value and this is reflected in the current Board. To measure the outcomes of our ED&I approach, an internal voluntary target was set at 40% for female representation across the senior leadership team in our business by 2025. In support of this, attention has been given to addressing factors within our control that make it more difficult for our female colleagues to progress on merit at the same pace as male colleagues. This 40% target was exceeded in March 2024 and work is underway to review this and other targets as part of a wider ED&I strategy update. The gender balance on the Board itself as at 30 April 2025 was 40% female (30 April 2024: 40%). The five elected Board members represent a mix of sectors and legal services in the business.

The NEDs bring independent judgement and their own expertise, one being an accountant and financial expert, and the other an expert in organisational change and leadership. Both devote sufficient time to make a valuable contribution.

Principle 3: Director responsibilities - the board and individual directors should have a clear understanding of their accountability and responsibilities. The Board’s policies and procedures should support effective decision making and independent challenge.

Our Governance Handbook establishes clear lines of accountability and responsibility between Members, the Board and its committees, the Senior Partner and Managing Partner/the Executive. Full matters reserved and terms of reference are set out in the Governance Handbook, as well as detailed Board role descriptions and election processes. The roles of the Senior Partner (one of whose responsibilities is to chair the Board) and the Managing Partner (who has executive control over the management of the business) are clearly separated.

The Chair ensures that the right information is supplied to the Board in a timely fashion to support effective decision making and that appropriate time is allocated to key matters under discussion at meetings. Guidance is provided on Board paper provision: papers need to be clear, succinct and, among other things, highlight any relevant or material stakeholder or environmental, social & governance (ESG) impacts considered in proposals coming for Board decision. Papers are subject to the scrutiny of the Chair in advance of circulation and are issued in good time in advance of meetings. The Board meets at least nine times a year and holds an awayday with the Executive.

The Chair ensures that all voices in the boardroom are heard and fosters a culture of open debate and constructive challenge.

A tailored induction programme, involving reading material and a phased programme of face-to-face meetings, provides all the information and contacts across the business that a new Board member needs to maximise their contribution as early as possible.

The importance of ongoing Board development is recognised and there are development items planned throughout the year. These are usually held at additional breakfast sessions outside the scheduled Board meetings.

The Board is supported by two committees:

the Audit Committee, and

the Remuneration and Nomination Committee (RemCo).

Both committees have clear terms of reference and are chaired by a NED.

As well as attending the Board and committees, the NEDs meet privately and provide support to the Senior Partner and Managing Partner and other senior members of the leadership team.

The appraisals of the Senior Partner and Managing Partner are led by the NED chair of RemCo.

The Chair has regular one-to-one discussions with all the elected Board members providing an opportunity to discuss Board matters.

The Board has the support of the Group Secretary and uses an online portal for access to, and security of, Board papers.

Principle 4: Opportunity and Risk - a board should promote the long-term sustainable success of the company by identifying opportunities to create and preserve value, and establishing oversight for the identification and mitigation of risks.

The Executive meets at least 12 times a year and via its composition is alert to the risks, as well as future opportunities that face the Group, and these matters come up to the Board for discussion where necessary. As per the Group’s Purpose, sustainable value is a key driver in decisions made.

To support the identification of opportunities to create and preserve value, there is a focus on innovation and finding new or alternative ways to continue to service our clients’ needs proactively and effectively. More on our approach to innovation, including some recent examples and award-winning developments, can be found here.

The Group's Office of the General Counsel (OGC) is responsible for dealing with risk management and compliance within the business. OGC works alongside all Group entities, both in the UK and internationally, in respect of risk and compliance.

Having established clear channels for the identification of risks, a Group risk register is maintained in OGC which sets out the principal risks facing the Group and other areas of focus. This register is continually reviewed and updated.

Risk is embedded as part of all discussions at the Executive and Board. The General Counsel (GC) is a member of the Executive and also attends Board meetings on at least a quarterly basis to discuss the principal risks facing the Group and mitigation required to minimise the Group’s exposure. The GC also regularly meets and has direct access to the Senior Partner, Managing Partner and each of the NEDs outside the cycle of Executive and Board meetings.

An internal control framework is overseen by the Audit Committee and managed by a combination of OGC, Finance and IT. Independent assurance is gained from a combination of testing by our external auditors, external assessments (for example, Cyber Essentials+ and ISO9001 and 27001 Standards) and client audits.

Principle 5: Remuneration – a board should promote executive remuneration structures aligned to the long-term sustainable success of a company, taking into account pay and conditions elsewhere in the company.

The Group rewards and recognises, at an individual and team level, those outcomes and behaviours which support the achievement of the Group’s Purpose and Vision and the delivery of our strategic objectives.

RemCo plays a significant role, alongside the Executive and Board, carrying out its defined responsibilities relating to Member and senior management remuneration, providing an objective view and working to ensure levels of remuneration take into account Group and individual performance and internal and external benchmarking. Factors beyond financial targets are taken into account, including alignment of behaviours with the Cultural Principles, innovation, collaboration and leadership.

Principle 6: Stakeholder relationships and engagement – directors should foster effective stakeholder relationships aligned to the company’s purpose. The board is responsible for overseeing meaningful engagement with stakeholders, including the workforce, and having regard to their views when taking decisions.

The Group’s Purpose is to help our clients and our colleagues succeed, creating sustainable value. Ongoing dialogue with colleagues, clients and other key stakeholders is considered fundamental to the Group’s success in fulfilling its Purpose.

In all decision making at the Board, when promoting the success of the organisation for the benefit of Members, regard is given to long-term sustainable value, acting fairly between Members, and any significant impact on colleagues, clients, suppliers, the community and environment.

We foster effective stakeholder relationships with some of our key stakeholders in the following ways:

COLLEAGUE ENGAGEMENT

The Board recognises the importance of a healthy workplace culture, underpinned by the Group’s Cultural Principles, which is responsive to the needs of our colleagues and the business. Being a people business, the input and feedback from our colleagues is fundamental to how our business is structured, ensuring that individuals are supported to achieve their full potential, with clear routes for progression.

Our People strategy has four strategic pillars:

• Lead
• Equipping leaders to lead and manage through change
• Aligning strategy to embed fully into teams to drive high performance culture
• Aligning behaviours and our Cultural Principles with leadership style

• Learn
• Innovating, collaborating and learning from others' experiences
• Defining clear expectations for each role and supporting frameworks for self-driven development
• Sharing knowledge with clients and colleagues

• Inclusion/Belonging
• Creating a sense of belonging in the Group through internal networks and collaboration
• Recognising the importance of different perspectives and different ways of thinking
• Seeking to understand and challenge anomalies and remove unwanted barriers to create an inclusive environment

• Celebrate/Reward
• Aligning with the long-term sustainable success of the Group
• Attracting, motivating and retaining high calibre people
• Enhancing and maintaining a high-performance culture.

We have an innovative approach to working, known as Flex Forward, which offers three types of dynamic, location-based working – office-focused, hybrid, and fully flex – to provide each colleague with flexibility for their role, subject to agreed operating principles. Flex Forward includes a more relaxed approach to working hours to support colleagues with their commitments outside of work, including caring and parental responsibilities.

Taking into consideration colleague feedback, there has been continuing focus on our total reward offering, for example launching a new UK fee earner bonus scheme in FY25, designed to be competitive and fair. Rewarding and celebrating success, it is underpinned by governance and moderation processes, and is in alignment with both our Cultural Principles and strategic priorities.

We were named in the list of Top 10 Employers for Working Families in both 2024 and 2025 by Working Families, the UK’s national work-life balance charity.

In relation to the 2025 qualifiers, the Group was pleased to retain 84% of those on DAC Beachcroft LLP funded training contracts and apprenticeships in England and Wales (2024: 70%, 2023: 85%) with 21 of the newly qualified lawyers staying on in permanent roles.

Our culture and style of engagement is one of transparency, openness and honesty. Manager dashboards are accessible for people managers to analyse engagement data and discuss with their teams. Communicating with our colleagues, keeping them informed on matters of importance to them and developments in our business, and listening to and acting upon feedback from colleagues across the Group are seen as key. This is achieved in a number of ways, including:

• Business updates directly from the Managing Partner to share information on the performance and development of the Group.
• Town Hall meetings hosted by the Senior Partner and Managing Partner to provide updates about the business to all colleagues.
• An internal monthly e-newsletter (DACBspoke), with an opening blog from the Senior Partner or Managing Partner.
• Members’ meetings with the Senior Partner and Managing Partner.
• A network of sector, legal service line, team and location meetings.
• A number of colleague-led diversity networks: ACCESS (racial inclusion), GEN (gender equity), Spectrum (LGBT+), and Parents & Carers.
• Senior Partner Sounding Board which provides a forum for the Senior Partner to benefit from reverse mentoring by colleagues in the early years of their careers.
• Viva Engage, an internal social media platform used by colleagues and as a mechanism for informal updates from members of the senior leadership team. There are a number of communities on Viva Engage in addition to the diversity networks through which colleagues can connect, such as the Great Outdoors, Menopause and AI at DACB.
• Regular colleague surveys using Peakon, a colleague listening tool that helps us better measure engagement. After each survey we discuss the results with our colleagues and action accordingly. Current areas of focus include reward, leadership development, career progression and wellbeing.
• Analysis from the various methods used to engage with colleagues outlined above is fed back to the Executive and Board and helps inform and enhance effective decision making and the Group’s People Strategy.

More detail on the demographics and diversity of the Group’s workforce can be found in the Equity, Diversity & Inclusion section of our website.

CLIENT ENGAGEMENT

The Group’s Client Engagement Programme is designed to forge effective and sustainable client relationships and in so doing to gain insights enabling us to deliver a supportive, value-added and bespoke service now and in the future.

Via our Client Listening Programme we seek formal feedback from clients at various stages in their relationship with us (tender debriefs, on-boarding reviews, relationship reviews and post-matter reviews). Feedback is considered and actioned at an individual client level after each review, supporting a cycle of continual learning and improvement. Aggregated feedback and insights are shared with the Executive and Board to inform and support the Group’s strategic decisions. We have also held Board client listening sessions to gain valuable insights from our clients on their emerging strategic priorities, expectations of their legal advisers and future needs.

Our Client Listening Programme measures the overall satisfaction of our clients with the Group. Our satisfaction rate in 2025 was 85% with a recommendation rate of 89%.

Our Client Engagement Programme also facilitates regular informal conversations with clients throughout the year and feedback is captured and responded to.

To better support and service our clients, we have accelerated the pace of our international expansion, opening offices in Italy, and establishing a presence in Argentina in 2023, opening in Peru and Hong Kong in 2024 and in the USA in 2025. We have also recently signed strategic association agreements with firms in Australia and Ecuador so we can better support our clients across Asia-Pacific and Latin America. Expanding our global footprint remains a priority.

In response to client needs, we constantly review our investment in technology and where we can automate the legal process to drive efficiencies, enhance the direct access of clients to our work and provide useful resources to save them time. The Group's AI committee is a senior steering committee, sponsored by a Group Executive member and focussed on AI strategy formulation.

Recent innovations and investments in response to client needs include the following:

• Continued use and development of AiDAN by the Group's Claims Solutions Group (CSG), AiDAN is a unique automated solution for property recovery triage. Using state of the art AI technology, AiDAN assesses potential claims and sets up new instructions. It combines our extensive expertise in property claims with advanced digital tools to facilitate swift claims processing.
• The launch in CSG of a credit hire automation tool, called Nightingale. Developed in association with Bridgetech Automotive, Nightingale enables claims handlers to process credit hire claims up to an hour faster than with a manual process. It also assists with reducing avoidable litigation and improves indemnity savings.
• The Strategic Advisory Team within CSG has released a detailed thought-leadership report into the impact and potential of AI in the insurance claims process. The aim in conducting the underlying research was to help inform clients’ strategic thinking about AI adoption in the months and years ahead.
• Thought leadership in the health sector via the regular issue of Health Adviser, a magazine which features commentary, insights and opinions from our health lawyers as well as from senior professionals working in the NHS and independent healthcare. Health Adviser sets out to provide senior decision makers from across the healthcare community with a platform to collaborate and share ideas. The 25^th edition covers a range of issues, including how the UK could learn from international care models and the role of AI in early cancer diagnosis.
• Regular publication of our Lawcast podcast, examining legal topics across the full range of business sectors to address questions and challenges faced by business professionals in the UK and internationally. Recent podcasts have included a new Health Adviser series and a continuing NHS Estates Podcast series which discusses key topics and issues for real estate in the health and social care sector.
• Informed Insurance: thought leadership for the global insurance market via the 2025 publication of 150+ predictions across the full spectrum of insurance risks, identifying key opportunities and challenges that the global insurance industry may face in the year ahead. Social issues featured as a dominant theme. The predictions are categorised under six themes: geopolitics, environment, social, technology, economics and regulation.
• The Real Estate Group is employing AI-enabled technology to assist with report writing and title reviews where appropriate.
• The DACB Trust Hub which can give clients and colleagues instant access to due diligence information about the Group, including in relation to our innovative products, the security we apply to protect client data, and information on our adoption of AI.
• Ongoing client collaboration around innovation, including AI.

We are proud to have received a number of awards over the last year, including:

• Commercial Property Team of the Year at the Yorkshire Legal Awards 2024.
• National Law Firm of the Year at the Chambers UK Awards 2025. The accolade, which recognises outstanding legal work, the most impressive strategic growth, and excellence in client service delivery, was based on their research conducted for the 2025 Chambers UK Guide.

SUPPLIER ENGAGEMENT

Fostering strong relationships with supply chain partners is of great importance to helping support our wider engagement activities and deliver one of the principal objectives of the Group strategy: operational excellence. Executive-level engagement is part of the supplier relationship framework, with Board oversight on matters and relationships of strategic importance.

We have a dedicated procurement team and have continued to invest in technology to help manage our supplier relationships, contract compliance and early identification of risks (including sanctions, financial and cyber security).

A robust procurement process is followed at onboarding and throughout the duration of the supplier relationship. The Procurement team works in collaboration with OGC to ensure early clarity on the required commercial terms for a mutually beneficial relationship and the protection of both parties, as well as detailed due diligence around supplier practices, with revalidation processes in place to ensure continued compliance with agreed standards. ESG-related requirements have been introduced into our standard supplier agreements and suppliers are expected to have appropriate ESG-related policies and procedures in place. The due diligence process seeks assurance on a wide range of commercial and other considerations, including modern slavery, diversity, sustainability and payment of the UK National Living Wage.

Our Modern Slavery Act statement is available here.

Supplier relationships are managed through regular governance meetings and via risk monitoring tools. Work has been undertaken to expand the scope and accessibility of our annual revalidation actions, with focus on providing greater assurance surrounding supplier relationships at all levels. Opportunities are provided for both parties to feed back on the relationship and discuss innovation and development in the products and services available.

Analysis of the sustainability and resilience of the supply chain is undertaken by Procurement and OGC. They assess the suitability of suppliers, and any significant risks or issues are raised with appropriate senior colleagues and, where necessary, escalated to the Executive and the Board.

As required, payment practices for our English entities are published on a half-yearly basis on the Government’s online facility.

ENGAGEMENT WITH OUR REGULATORS

In making strategic decisions, due consideration is given to the relevant regulatory environment in the jurisdictions in which we operate to ensure we are compliant with local legislation and regulation. For those entities within the Group based in England and Wales, there is regular dialogue with the Law Society, our representative body, and the SRA as our regulator. We work with them in respect of changes and initiatives impacting the profession and the community. We also work with other representative bodies, such as the Bar Council, on select pieces of strategic work for the legal sector as a whole.

Horizon scanning is undertaken to check for changes to other law and regulation which impact the Group to ensure that compliance is maintained through effective planning, response and implementation.

RESPONSIBLE BUSINESS: STAKEHOLDER ENGAGEMENT

Responsible Business considerations shape the way we operate, enabling us to better support our colleagues as well as our clients and communities. The Group has developed a Responsible Business Strategy with wider sustainability objectives in recognition of our role in society. The Board is updated on progress at least once a year and the Head of Responsible Business reports directly into the Senior Partner.

The strategy connects directly to our Purpose as a firm, which is focused on creating sustainable value for our clients, our people and our communities. Our Responsible Business activities are reflected in the way we recruit and look after our people, the way we do business with clients and suppliers, our impact on local communities, and our environmental footprint. The Group’s Responsible Business programme is delivered through four workstreams: social mobility and inclusion, sustainable procurement, community investment, and environmental sustainability. More information on these workstreams can be found in the Responsible Business section of the website.

A new Head of Responsible Business was appointed in April 2025 to develop and manage the Group's strategic plans across all aspects of Responsible Business, and to drive the agenda on pro bono, community targets, environmental sustainability, and engagement across the Group in Responsible Business initiatives.

For several years we have reported on our carbon emissions through the Legal Sustainability Alliance and we deploy a number of carbon reduction initiatives, including e-signature document production and renewable energy procurement policies. Our Carbon Reduction Plan was first published in April 2022. We have now committed to more ambitious carbon reduction measures, expanding the scope of our environmental reporting to enable submission to the Science Based Targets Initiative (SBTi), the world-leading framework for setting targets which are aligned with the Paris Agreement. Our commitments submitted to the SBTi are to reduce Scope 1 & 2 by 42% by 2030 and Scope 3 by 25% by 2030, aiming for Net Zero by 2050.

Our latest ED&I report is on our website and sets out progress made during the fourth year of our FY21–FY25 ED&I Strategy. It outlines key initiatives, examines our workforce composition across the UK and Ireland and highlights actions taken to create an inclusive environment where diverse talent thrives. Analysing the composition of our workforce in this way helps to inform our People Strategy so that we make sure that people from all backgrounds and with the widest possible range of experiences bring their views and knowledge to our business. Work is ongoing to update our ED&I objectives and launch a revised strategy. Our latest gender pay gap reports can be found here. On ED&I, developments in the year included:

• Progressing our Women in Leadership programme to support women to develop their careers by addressing challenges and building essential skills for senior roles.
• Launching a reciprocal mentoring programme pilot which sees colleagues from ethnically and racially diverse backgrounds mentoring senior colleagues.
• Applying advanced analytics in relation to our colleague engagement survey to enable results to be analysed by diversity characteristics.
• Hosting two students to date as part of the 10,000 Black Interns Programme.
• Piloting a programme hosting a supported internship in preparation for taking part in Project Search. Project Search is an external programme model which includes providing structured workplace internships and training tailored to neurodivergent candidates.

For those returning from maternity leave we have in place access to a network of Back to Work mentors, being colleagues who have experienced the challenges of transitioning back into work. We also remain a signatory of the Wellbeing of Women's Menopause Workplace Pledge. We were pleased to be recognised by Working Families as a Top 10 employer for working families in both 2024 and 2025.

Developments which illustrate our engagement with stakeholders relating to the community include the following:

• Our ongoing corporate partnership with Action Tutoring, which involves a multi-year grant to fund the project's expansion. A significant number of colleagues volunteer as tutors to provide support to disadvantaged pupils in English and mathematics.
• The Group's volunteering programme with Change Please, a social enterprise which helps homeless people through its coffee business. In FY25 as part of the programme our volunteers have helped 20 people through employability workshops, assisting them to move into onward employment.

In FY25 more than a quarter of our colleagues volunteered for one of our Responsible Business programmes.

The Group’s energy and carbon report can be found in the Group report and accounts.