The bill amends Arkansas law regarding the exceptions to the prohibition against corporations or voluntary associations practicing law. Specifically, it allows these entities to employ in-house attorneys to represent not only their own interests but also those of their affiliates in legal matters. The definition of "affiliate" is expanded to include various forms of related entities, such as corporations, limited liability companies, and partnerships, which are connected through shareholdings or other means of control.
The amendments to Arkansas Code 16-22-211(d) clarify that the prohibition does not apply to for-profit corporations or voluntary associations engaged in specific activities, including employing attorneys for their immediate affairs or litigation involving their affiliates. Additionally, the bill maintains existing exceptions for nonprofit organizations that provide legal assistance to disadvantaged individuals or represent government entities, ensuring that legal services are rendered by licensed attorneys in compliance with state regulations.
Statutes affected: HB 1895: 16-22-211(d)
Act 843: 16-22-211(d)