A lawyer asked to represent a company and its owners, or several co-defendants, must address the risks before beginning.
No privilege between joint clients. Communications are privileged as against outsiders, and not as between the clients if they later fall out. Both must be told this at the outset, in writing.
Information sharing. In a joint representation the lawyer generally may not keep one client’s confidences from another on the matter, which means a client with a secret cannot be jointly represented.
Entity representation. A lawyer for a company represents the company, not its owners or officers. Where an individual may need separate advice, they must be told the lawyer does not represent them and that they may wish to obtain their own counsel.
Emerging conflicts. If the clients’ interests diverge, the lawyer may have to withdraw from representing all of them, which is disruptive at the worst moment.
When it is appropriate. Aligned interests, sophisticated clients, informed written consent, and a defined scope. Formation of a company for co-founders is the common example, and even there separate counsel for the individuals is sometimes the better course.
Documentation. An engagement letter that states who is and is not the client, and what happens if interests diverge.