The number of businesses in the UK which are suffering from ‘significant’ or ‘critical’ financial problems on the first quarter of 2011 has risen to 186,000, according to a report by insolvency specialists Begbies Traynor. This is an increase of 26 per cent over the figure for the third quarter of 2010 and is 15 per cent more than the same quarter in 2010.
Another report shows a 4 per cent jump in the number of retail businesses at ‘high risk’ of insolvency and there has also been a 15 per cent increase in the number of retails using company voluntary arrangements compared with 2010.A
report by accountants PwC also revealed an increase of more than 12 per cent in corporate insolvencies with retailing the worst-hit sector.
Things are tough in retailing and the building industry was recently identified as having had a particularly bad winter.
For advice on managing your trade risk, contact us.
Posted May 16th, 2011 in General |
The Competition Act 1998 has recently been extended from 6 Apri 2011 to cover agreements with regard to land. Such agreements were previously excluded.
The Act seeks to prohibit agreements, etc. which prevent, restrict or distort competition.
The change is important for owners and occupiers of land, because it has been common for agreements (especially tenancy agreements) to contain exclusivity clauses – for example, where a tenant retailer agrees with its landlord that no competitor of the tenant will be allowed retail space in the same development. Such agreements may now be unlawful.
Where such agreements are in place, we recommend having them reviewed in order to ensure that they do not conflict with the principles contained in
Chapter 1 of the Act.
The Office of Fair Trading has issued guidance on the changes, which can be found
here.
Contact us for advice concerning the application of the Act in your individual circumstances.
Posted May 13th, 2011 in Commercial Property |
Employee absence costing UK economy £17 billion
According to a survey by the CBI/Pfizer Absence and Workplace Health Survey 190,000,000 work days were lost because of absence. This rate, equating to an average of 6.5 days per employee is a little higher than the previous year, at 6.4, and suggest that the new employment law procedures for sickness absence are having little effect as of yet. The research also indicates that of the higher overall cost of sickness absence, absence due to non-genuine sickness may be costing as much as £2.7 billion or 30.4 million “sickie” days’.
Posted May 13th, 2011 in Uncategorized |
The new ‘mediation first’ rule applicable to divorce and separation have been well publicised, but moves to make the process more jargon-free have not received much attention.
The following changes have been made which will, it is hoped, help the participants in family proceedings better understand the process.
Old legal term New legal term
Ancillary relief Financial order
Divorce decree Matrimonial orders
People without mental capacity Protected parties
Guardian ad litem Children’s guardian
Next friend Litigation friend
Posted May 11th, 2011 in Family, General |
Under UK law, anyone who is allowed unopposed occupation of a piece of land for more than twelve years (10 years for registered land if appropriate procedures are followed) can acquire legal title to the land. Although numerous safeguards were introduced in the
Land Registration Act 2002, which introduced a system of notices before the title could be transferred, this continues to be the case.
The UK's approach to 'squatters' rights' (known in legal circles as adverse possession) has been ruled to be lawful according to a ruling by the European Court.
If you allow people to make use of land you own without taking measures to protect your rights you run the danger of giving them permanent legal rights over your land or even losing legal title to it. Contact us for advice.
Posted May 9th, 2011 in General |
The Department for Business, Innovation and Skills has published guidance for employers and those in the recruitment sector on the Agency Workers Regulations 2010 (AWR), which come into force on 1 October 2011.
The AWR will give agency workers the same basic terms and conditions of employment as if they had been recruited directly by the hirer, once they have completed a qualifying period of 12 calendar weeks in a particular jobs, but will not fundamentally affect employment status or how agency staff are placed and managed.
The 50-page guidance covers:
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the scope of the AWR;
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qualifying for equal treatment;
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how to identify basic working and employment conditions and the relevance of a ‘comparator’;
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pay;
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working time and holiday entitlement;
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pregnant workers and new mothers;
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pay between assignments;
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information, liability and remedies;
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information a Temporary Work Agency (TWA) must have before supplying an agency worker; and
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compliance information required by a TWA from a hirer.
Employers are advised to consider how the AWR will affect them and have procedures in place by 1 October to ensure compliance. For individual advice, contact us.
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Posted May 9th, 2011 in General |
It may be assumed that when a couple purchase a property in equal shares, that is how ownership remains, but it isn’t necessarily so.
In a recent case, the High Court had to rule on the ownership of a house, which had been bought for £30,000 by a cohabiting man and woman who lived in it between 1985 and 1993. When the relationship broke up, the man moved out and ceased to contribute to the mortgage and running expenses of the property, and made no contr
ibution towards maintenance of the couple’s children. He bought another property and moved there. The couple cashed in a joint insurance policy to assist him to finance his new home.
In 2008, it became necessary to determine the respective shares of the ownership of the property, by which time its value had risen to £245,000. The County Court ruled that the share of the woman who had remianed in the house should be 90 per cent. On appeal, the High Court upheld this decision.
After a further appeal, the Court of Appeal ordered that the split should be 50:50. The case is now to be heard by the Supreme Court and may be expected to set a precedent for how similar cases will be decided in the future.
Posted May 6th, 2011 in Family |
HM Revenue and Customs have reported an upsurge in a common ‘phishing’ scam, in which an email is sent advising that the recipient is due a tax refund and that all that is required to make the refund is your bank account and security information.
On receipt of this information from anyone fooled by the scam, the fraudsters proceed to clear out the bank account.
HMRC NEVER advise of tax refunds by way of email. See their online security advice.
For more information, click the link below.
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Posted May 5th, 2011 in General |
A motor cycle rider who challenged Westminster Council over parking charges for motor bikes and then pursued it all the way to the Court of Appeal has seen it rejected.
Warren Djanogly claimed that the introduction of roadside parking charges by the Council, by an order made in 2010, was invalid.
Unfortunately for him, the Court ruled that the achievement by the Council of a traffic management benefit through the introduction of the parking charge was sufficient to make the order legitimate.
Posted May 4th, 2011 in General |
Keeping your head (and thereby taking a reasonable approach) when all about you are losing theirs can pay dividends in court.
In a recent case involving the break-up of a limited liability partnership (LLP), a partner who had been effectively expelled by the other members made an offer to them, in open correspondence (correspondence which is not legally privileged), that they should buy out his share in the LLP at fair market value.
The offer was rejected. When the case went to court, the court ordered that the ex-partner’s share should be bought out by the other members of the partnership at fair market value.
Because he had made the offer in open correspondence, the court ruled that the ex-partner’s costs should be settled on an ‘indemnity’ basis, which means he will receive approximately 90 per cent of his costs from the losers. Normally, the winner can expect to receive about 70 per cent of their costs from the loser.
The courts generally react favourably to litigants who are shown to have tried to adopt a reasonable approach.
We can help you negotiate a successful outcome to your commercial dispute.
Posted May 3rd, 2011 in Commercial Litigation |
