Tensions at DFDL prompt creation of new firm

Two partners and about 20 employees at DFDL, a regional law firm that has consulted on some of Cambodia’s biggest investment projects over the past 16 years, stunned the company last weekend with an announcement of their departure to start a new tax advisory outfit. The departing partners, who were based in Phnom Penh, yesterday said that months of negotiations to restructure DFDL’s tax unit had proved unsuccessful, leaving them no choice but to leave. Edwin Vanderbruggen, now a former DFDL partner and managing director of the company’s tax and customs practice group, claimed that he and fellow partner Jean Loi had held discussions with management about the company’s tax division – and leaving the firm entirely – since at least the middle of last year. Those talks had proved unsuccessful, Vanderbruggen said. “Something had to be done. These talks were dragging on and it wasn’t confidential anymore, and it was affecting the spirit and atmosphere in the office,” he said, claiming that DFDL employees, clients and competitors knew of the office tensions. DFDL, however, said in a statement that it was caught unawares by the move and claimed that the partners were under obligation to the firm. “Appropriate measures” would be taken in response, it said. …

http://www.phnompenhpost.com/index.php/2012022754727/Business/partners-at-dfdl-start-new-firm.html