The Fin ‘The Great Wall of China’: A law firm’s cautionary tale
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Jun 18, 2025 Maxim Shanahan, a professional services reporter at The Australian Financial Review, uncovers the dramatic struggles of King & Wood Mallesons, from governance failures to chaotic mergers. He discusses the challenges of navigating legal ethics in a complex geopolitical landscape, including controversial dealings in countries like Montenegro. Shanahan also highlights how internal conflicts and accusations of corruption put the firm under scrutiny, echoing broader concerns about law firm governance in a globalized world.
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Merger Highlights Cultural Clash
- The merger of Australia's Mallisens and China's King & Wood in 2012 symbolized optimism about China's growth and political opening.
- Senior Australian lawyers felt overshadowed during initial merger talks in Beijing, highlighting cultural and power imbalances.
Swiss Verein Structure Creates Divides
- KWM is structured as a Swiss verein, making each country partnership financially separate.
- This isolation reduces risk but causes transparency and cooperation difficulties, especially internally between Australia and China.
Rupert Lee's Controversial Exit
- Rupert Lee, KWM's global COO, had significant financial and legal troubles including a HK$8 million company loan and involvement in a gambling crackdown.
- Disputes emerged over his departure, with conflicting accounts from Lee and KWM Australia.