Tuesday April 2, 2013 at 9:23am
The first question to ask yourself when you are thinking about making a claim is who you are going to claim against. And sometimes the answer might not be as straightforward as you think, and particularly when dealing with company groups.Imagine the following common scenario. You are approached by a representative of a large and impressive business, say ‘XYZ Group Ltd’. They are established players in the industry and are known to have many assets. They give you a lot of work but, wh....
(read more...)Monday February 4, 2013 at 6:54pm
It often happens in business: you signed a contract that you later regret. Sometimes it’s because the other party is not performing as expected but, at other times, it’s just because you’ve changed your mind. It’s usually not easy to get out of a contract but what follows are things to consider. Has there been a breach? The first point to consider is whether the other party has done anything wrong. They might, for example, be in breach of a term in the contract or maybe t....
(read more...)Wednesday December 5, 2012 at 5:30pm
There are certainly some measures in the Chancellor’s Autumn Statement that will help SMEs. As always, however, the devil will be in the detail (which remains to be seen) and much will depend on how some of the new measures are implemented. There are some measures that could help increase investment and growth, as long as they are handled well. In summary, the measures that will really affect SMEs were as follows: Corporation tax. To be reduced to 21% in April 2014. A new Business Bank to ....
(read more...)Tuesday December 4, 2012 at 10:03am
I often advise companies who believe that a director can be removed from office simply by sending Form TM01 to Companies House. Unfortunately, this does not remove a director and is unlawful unless the correct steps have been taken beforehand. The following procedure should be followed: 1. Look at the Company’s Articles (and any shareholders’ agreements) as these will set out certain requirements that your particular company must follow. They will also set out certain circumstances t....
(read more...)Monday December 3, 2012 at 2:09pm
Summary A partnership is a relatively simple way for two or more people to own and run a business together. However partners do not enjoy any protection if the business fails and you should definitely get a written Partnership Agreement drafted. How to make a business partnership legal This is a question we’re often asked to consider – but normally only when things have gone wrong in a business relationship. It comes up when business partners or directors want to go their separa....
(read more...)Monday October 29, 2012 at 1:49pm
It is often said that large businesses are at an advantage when it comes to litigation as they have bigger pockets. From my experience, that’s only part of the reason. They also have more experience of litigation and know how to work with their lawyers as a team in order to minimise their costs. They tend to appoint an individual (or sometimes a team) to help their lawyers prepare their cases. They know that a lawyer is best placed to handle the legal side of things but it’s cheaper ....
(read more...)Thursday September 20, 2012 at 10:00am
As a litigation lawyer dealing with disagreements between businesses, I frequently find I’m called upon to help business owners who have broken or ignored the terms of a legally binding contract. As with anything concerning the law, there’s a right way and a wrong way of going about this and the clients who end up spending a lot of money with me have often tried to do things the ‘wrong way’. You can’t get out of a contract just because you’ve changed your mind....
(read more...)Tuesday August 21, 2012 at 10:00am
Having read my colleague Sue Mann’s blog last week (New customer or supplier? How to manage your risks), I realised I might be missing an opportunity to advise clients who ought to be reviewing their standard contract terms or their terms of business. As someone who tends to work with businesses that either don’t have adequate written contracts in place, or are using the terms of a contract to try and obtain reparations from a third party, I am pretty familiar with some of the confus....
(read more...)Monday July 30, 2012 at 4:03pm
Is there increasing friction between you and your fellow shareholders and/or directors? Are your board meetings starting to bear a striking resemblance to Alan Sugar’s ‘Apprentice’ ones? If so, then you need to take action and start to think tactically. The first points to consider are as follows. Know your legal powers Are you a shareholder, director, or both? The voting powers of directors at Board Meetings are usually equal (although often a Chairman will have the casting vo....
(read more...)Monday July 2, 2012 at 3:13pm
I’m often asked by business owners for my advice when they are in dispute with a customer or supplier. Unlike the current message we get on everything from t-shirts to mugs to Keep Calm and Carry on! my advice is invariably Keep Calm, but don’t Carry On.
If you’re in dispute with a customer, for example who refuses to pay or disputes an invoice claiming what you’ve delivered was not what they were expecting, didn’t meet quality standards or wasn’t delivered ....
(read more...)Monday July 2, 2012 at 11:33am
One thing that struck me about the recent news story when the Prime Minister, David Cameron, said that comedian, Jimmy Carr, was “morally wrong” in trying to reduce his tax bill legally was the fact that he had to resort to a plea for morality. As a commercial dispute lawyer, I often come across parties who state that they have a “moral right” to redress. Like all lawyers, I know that a call to morals in a business dispute context is an admission of failure. The subtext I....
(read more...)Thursday May 24, 2012 at 9:55am
I know from my experience of talking to clients that for most small, family or owner managed businesses, the prospect of picking up the phone and first talking to a solicitor is not something they relish. You might expect that cost would be the main reason that they dread that call but, in fact, it’s often different factors that come into play: things like not knowing which lawyer to select, not knowing where to start in explaining their requirements, and dreading talking to some pompous, ....
(read more...)Tuesday May 15, 2012 at 9:08am
The failure of Greece to form a government following elections has led to many believing that a Greek default and exit from the Eurozone is now more likely than not. If this happens, then it is probable that other countries in difficulty, such as Portugal, Italy and Spain, will soon follow, and possibly other countries too. If you trade with any of these countries, then you should now be putting plans into effect to protect your business and minimise your exposure. What a Euro default will look ....
(read more...)Thursday April 19, 2012 at 9:12am
Running a business is stressful; there’s no doubt about that. But new research from business insurer Hiscox suggests that, in spite of increased physical and mental stress, UK SMEs are determined and up for new challenges.According to their SME Health Check research commissioned amongst 502 business leaders in businesses with up to 249 employees, 45% were more stressed than a year ago and 77% reported suffering ailments like lack of energy, headaches and anxiety. That’s the bad news.....
(read more...)Friday March 30, 2012 at 9:12am
As a solicitor who defends directors when they get into problems with liquidators, fellow directors and shareholders, suppliers and customers, as well as government bodies, I am constantly struck about how most of these problems could have been avoided if directors hadn’t made a few basic mistakes. So here’s my list of 6 mistakes that I’ve seen since the beginning of the year that have led to real problems, heartache and unforeseen expense for my director clients.
Going in....
(read more...)Friday March 16, 2012 at 10:09am
There have been several positive signs in the last few weeks that the economy might have turned the corner. A survey by the Institute of Directors of its members showed that 50% of business leaders expected revenue to increase in 2012 and 40% expected to increase profits over the year. However, when it came to investment plans, only 27% expected to increase investment, with 29% expecting it to be lower. The Federation of Small Businesses reports a survey of its members showing that more tha....
(read more...)Tuesday March 6, 2012 at 7:19pm
The BBC has today published a letter from Vince Cable to David Cameron and Nick Clegg written on 8th February 2012. In it, Mr Cable states that government policy is “missing a compelling vision of where the country is heading beyond sorting out the fiscal mess”. He argues that the government needs to take a much more active stance in promoting growth by supporting certain growth sectors and their supply chains (including technology, the aerospace and automotive industries, the digita....
(read more...)Wednesday February 29, 2012 at 10:50am
The 200th anniversary of Charles Dickens’ birth has just been marked across the UK and I am reminded of the most famous line from Oliver Twist, “Please Sir, can I have some more?” It has recently been announced that, overall, banks fell short of their Project Merlin lending targets to small businesses by £1.1 million. So what the Dickens is going on? The figuresFigures released on 13th February showed that gross bank lending to businesses overall was £214.9 billion....
(read more...)Sunday January 29, 2012 at 6:09pm
When speaking to our clients recently, it is apparent that most have started the year with a sense of cautious optimism. It’s easy to understand the source of the caution: the economy remains in a mess for the 5th year running, with negative growth back, unemployment continuing to rise and the largest ever national debt. Although there has been much talk of the government reducing red tape, little has been achieved so far and we are still affected by a seemingly endless stream of new regul....
(read more...)Wednesday January 18, 2012 at 1:10pm
The Government has announced plans to begin a major cut back of health and safety red tape. It will begin an immediate consultation on the abolition of large numbers of health and safety regulations and intends to have removed the first rules from the statute book within a few months.
It seems David Cameron has finally realised how crippling the raft of health and safety legislation can be for the average business. He’s recognised that health and safety legislation has become an "al....
(read more...)Wednesday December 21, 2011 at 5:59pm
I must confess to a fascination with the Leveson Inquiry into the Culture, Practice and Ethics of the press. Piers Morgan was in the witness box yesterday answering questions about his time as editor of the Daily Mirror. His evidence echoed that of James Murdoch given to the House of Commons Culture, Media and Sport Committee: he didn’t know what was going on in his organisation. It’s something I hear a lot from company directors facing claims against them personally arising from the....
(read more...)Wednesday December 14, 2011 at 6:13pm
With all the criticism and praise of David Cameron using his veto at the EU last week, as an expert in resolving commercial disputes, I know that sometimes walking away is the right thing to do. In negotiations and mediations, one of the ‘killer’ tactics available is the threat of walking away. The very threat of doing this puts the other side on the spot: how keen are they really to resolve the issue, to reach a win-win settlement? It sends the message that they’ve gone beyond....
(read more...)Wednesday November 30, 2011 at 8:30am
Whenever I read the business news these days, a picture of Private Frazer from Dad's Army comes to mind: “We’re dooooomed!” But it’s not all bad news. Although net borrowing is not falling as much as the government planned, and there will still be some structural deficit by the time of the next general election, it is falling, and is predicted to continue to fall even when the lower growth rates are factored in. This should keep interest rates low, although the difference....
(read more...)Tuesday November 29, 2011 at 5:23pm
If you’re considering removing a director, or if you are a director facing the prospect of being removed by your company, there are many tactics to consider to obtain the most favourable result. Taking early legal advice from a solicitor who specialises in directors’ duties is essential, not only to obtain the best outcome you can, but also to reduce the mental and emotional stress that comes with the territory. After all, you spend more of your waking time at work than you do with y....
(read more...)Thursday October 27, 2011 at 1:35pm
Most small businesses learn early on that there is a difference between being busy producing and selling goods or services and actually getting paid for them. The temptation to extend credit terms to customers so they can buy your goods might seem like a good idea at first but, in reality, you are lending them money, which presumably they have been unable to obtain from their bank or other sources. Do you really have the funds to risk on customers who may never be able to afford to pay? It&rsquo....
(read more...)Thursday September 22, 2011 at 11:33pm
Being a business solicitor based in Northampton I was pleased to hear the news last month that Northampton had been successful with its bid to develop an Enterprise Zone and interested to find out exactly what the benefits for local businesses would be. The Enterprise Zone is a government initiative with the aim to stimulate growth in the economy. This is particularly important given the recent negative indicators.
It has to be hoped that the attraction of being located in the Northampton....
(read more...)Monday September 19, 2011 at 10:22am
There are certain things all businesses can do to right now to reduce the possibility of litigation arising (even years before you have a dispute). And they just happen to be the same things that will reduce your legal costs if litigation does occur, and also make it more likely that you will win. Getting the contract right A contract can be in writing but it doesn’t have to be. It can be oral (e.g. “I’ll pay you if you do this for me”), written in a formal contract, or s....
(read more...)Monday August 1, 2011 at 12:21pm
Although the noises coming from BIS (the Department for Business Innovation & Skills) are upbeat when it comes to the fight against Red Tape, we have yet to see real changes. I wonder how much is just noise (and distraction from the awful economic growth figures) and whether the government’s Red Tape Challenge will actually prove to be more than just a website and encouraging sound bites. Of course, the real issue with excessive red tape comes from Europe and not the UK government. Mos....
(read more...)Monday July 25, 2011 at 6:59pm
It’s not just the weather that’s bad this summer; the economy’s not looking too sunny either. Bank lending to businesses continues on its downward track with the reduction in lending in June being faster than the average of the previous six months. Small businesses are particularly suffering; according to the Bank of England, lending to small businesses fell 4.2% in May compared to the previous year. Businesses are blaming the banks for not lending and it’s certainly true....
(read more...)Monday July 4, 2011 at 12:55pm
A ‘pre-pack’ is a legal process where the business and assets of a struggling company are sold immediately after it is placed into administration. As the name suggests the deal is agreed beforehand meaning that unsecured creditors (including landlords) are not given the opportunity to object.
Pre-packs are now popular as they allow the business to continue without the unprofitable parts or a heavy debt burden and can save jobs. They have also been controversial where they allow fai....
(read more...)Wednesday May 11, 2011 at 5:10pm
Many directors of SMEs are taking huge risks when it comes to paying themselves without realising – and it is often on their accountant’s advice. It is very common that a company’s accountant will advise directors of owner-managed companies to take the majority of their pay as dividends with either no salary or a very low one. This has a financial advantage, particularly as far as national insurance contributions are concerned. The director then simply draws a monthly sum from ....
(read more...)Tuesday April 5, 2011 at 9:35am
It wasn’t an exciting budget, and it did contain some help for SMEs, but did it go far enough? The government is beginning to realise that sustained economic growth will need to come from the SME sector but should it do more to boost this vital sector? The focus for the economy as a whole remains the reduction of the public sector deficit. This is essential to create the right economic environment. It should create more market stability and keep interest rates as low as possible as well as....
(read more...)Monday February 28, 2011 at 3:44pm
Since it first came to power, the government has promised to reduce the excessive red tape that is strangling British business, and SMEs in particular. It introduced a ‘One In One Out’ system where new regulation would only be introduced where another piece of regulation could be removed. It also created its own red tape regulator, the Regulatory Policy Committee (RPC), whose job is to scrutinise proposed regulations to see whether their benefits exceed their costs and are fit for pu....
(read more...)Tuesday January 4, 2011 at 9:56am
As we enter 2011, one thing is for sure: company directors have never before faced so many duties, responsibilities and potential personal liability for the companies they control. Based on recent trends, we predict that the following 4 areas will be the main ones for directors of SMEs to watch out for in 2011. Directors Pay The law on how and when a director can be paid is complex and there are strict procedures that must be followed. We have seen a large increase recently in the volume of clai....
(read more...)Monday December 6, 2010 at 7:56pm
What surprised me most about the news story of MP Phil Woolas losing his seat for lying is the number of politicians who came forward to say that lying is just a part of the “rough and tumble” of electioneering. Do we, as a society, really think it’s OK to lie in public? As a litigation solicitor with considerable court experience, I have seen many individuals lie in the witness box or, as their lawyers will usually put it, “being mistaken”. That’s why most of....
(read more...)Thursday November 25, 2010 at 6:27pm
If a director who has loaned money to their company resigns, or is dismissed, can they get their loan back? Many companies, especially in the current economic climate, seem reluctant to repay a director’s loan in this situation. The first thing to look at is the loan agreement itself, if there is one. It may set out the circumstances when a loan can be repaid. If the written agreement doesn’t deal with this point or, if there is no agreement, then the loan will generally be repayable....
(read more...)Monday November 22, 2010 at 12:06pm
As we approach the end of 2010, the economy is still very fragile. However, most of the small and medium businesses we have been talking to are showing some improvement compared to this time last year. Our clients are saying they are busier now than they have been for a couple of years, although it is fair to say that a lot of this is due to them having cut back on costs and staffing levels to such an extent that they don’t have much spare capacity. Some of the recent official statistics a....
(read more...)Monday November 15, 2010 at 2:10pm
In my blog of 15th September 2010, I pointed out that breaches of directors’ duties can have serious consequences for a director, particularly if a company becomes insolvent or after it is sold. It is in these situations that directors frequently find themselves facing claims to pay often-huge sums into the company. One of the areas where it is easy for a director to slip up is in ‘conflicts of interest’. The law is complicated but, for SMEs, can be summarised as follows:
....
(read more...)Sunday October 24, 2010 at 8:27pm
It’s been a long 5 months since the drama and political intrigue of the General Election. Most political debate has been about public sector cuts but, until now, no one had really known what they would entail. As far as small and medium businesses are concerned, are we really any the wiser following the Comprehensive Spending Review? In my view, the three main issues facing SMEs at the moment are the state of the economy as a whole (and in particular demand for our products and services), ....
(read more...)Wednesday September 15, 2010 at 7:36pm
Company directors are subject to so many duties that, if they are not careful and don’t take proper advice, they can easily find themselves in breach of one or more of their duties. But, in SMEs and family-owned companies, the directors and shareholders are usually the same people; so who cares anyway and how would anyone find out about the breaches? Some breaches are very easy to commit, and many directors don’t even know they are doing anything wrong. For example, there are various....
(read more...)Tuesday July 20, 2010 at 9:00am
The Emergency Budget showed that the government are seriously committed to reducing the budget deficit, primarily through public sector cuts and an increase in VAT. Predictably the politicians have since been arguing about whether this is too much too soon (with the risk of a double-dip recession) or exactly what was needed due to the frightening increase in the deficit. Whilst all this argument makes good headlines for the politicians, the truth is that no one can say for sure how the economy w....
(read more...)Thursday July 1, 2010 at 7:58am
I have blogged before about the coalition government's promise to remove excessive red tape and to allow businesses to nominate their most hated business laws.Well, at last our chance is here. The government has now launched its Your Freedom website where we can tell it what regulations we want to see removed.They promise to listen. Now let's see how good they are at acting.Gary CousinsBusiness Solicitor
....
(read more...)Wednesday June 16, 2010 at 6:59pm
According to a recent Federation of Small Businesses (FSB) survey, although the level of small business satisfaction with high street banks remains low overall, one of the most important things firms looked for in a bank was a good working relationship with their business manager. There was a strong correlation between the number of business managers a firm dealt with in a 2-year period and the level of dissatisfaction reported. Firms that had the same manager for 2 years had a dissatisfaction l....
(read more...)Friday June 11, 2010 at 5:44pm
Directors are under a legal duty to maintain detailed accounting records of their company. In particular, they must maintain records:
to show and explain transactions, and disclose the financial position of the company at any time with reasonable accuracy;
to enable them to compile balance sheets and profit and loss accounts;
to keep records of all money received and paid out by the company on a day-to-day basis;
to maintain records of the company’s assets and liabilities;....
(read more...)Thursday June 3, 2010 at 6:54pm
The government has taken its first steps to reducing the amount of red tape which is stifling business, particularly SMEs. The Business Secretary, Vince Cable, has announced an action plan to tackle excessive regulation. It includes the following:
The creation of a new Cabinet “Star Chamber”, officially to be called the Reducing Regulation Committee, which will be chaired by Mr Cable. It is tasked with “stress-testing” proposed regulations to make sure that only thos....
(read more...)Tuesday May 25, 2010 at 9:00am
When the final Coalition Agreement was published last week, Nick Clegg announced that the government would be asking people what laws they wanted to be scrapped. It was a manifesto pledge of both the Conservatives and Lib Dems for there to be a “one in one out” policy as far as business regulation is concerned – in other words, if a government department wants to introduce another piece of regulation, they must abolish as least as much existing regulation – and it has now....
(read more...)Thursday May 20, 2010 at 12:00pm
The long-awaited Full Coalition Agreement has now been published, which sets out what the coalition intends to do during its time in office. Refreshingly, it has a section specifically on business, something which the individual party’s manifestos failed to do. Unfortunately, there are a lot of promises to “review”, “look into” and “consider”, which doesn’t help when SMEs are desperate for help. The government’s main promises, as far as SMEs ....
(read more...)Thursday May 13, 2010 at 5:58pm
Birmingham is officially the top European city for promoting entrepreneurship It was announced on Monday that Birmingham was number one in the prestigious European Cities Entrepreneurship Ranking for promoting entrepreneurship. This category ranks Europe’s cities as to how they promote and support new business, and create an environment for entrepreneurs and new business growth. In the overall ranking, however, Birmingham came 25th , ahead of Manchester (32nd) and London (33rd), but still ....
(read more...)Wednesday May 12, 2010 at 5:18pm
The new coalition government has published their Coalition Agreement. It is difficult to see what measures remain in place to support SMEs. The agreement does, however, include the following:
* Cancelling some backdated demands for business rates;* Generous CGT exemptions for entrepreneurial business;* Ensuring that the flow of credit to viable SMEs will be a core priority, including: * A major loan guarantee scheme; and * Setting lending targets for nat....
(read more...)Tuesday May 11, 2010 at 4:17pm
A poll by the Federation of Small Businesses (FSB) reveals that 54% of small businesses are planning not to expand following the election result. I am not surprised. The simple fact is, that for a small business to expand, it needs confidence that customers will be there to buy its products in the future and have the financial means to do so. The poll also revealed that 52% want action taken by government to reduce the budget deficit sooner rather than later, 44% want to see the banking system r....
(read more...)Friday May 7, 2010 at 12:30pm
The magazine for small businesses and entrepreneurs, Real Business, reports that a new survey suggests a lack of education and training for entrepreneurs is holding back many people from setting up their own businesses.The research, published by the Global Entrepreneurship Monitor (GEM), shows that only 18 per cent of the UK's working age population has received training in starting a business.The reason this is significant is that apparently those who have had training are much more likely to &....
(read more...)Wednesday April 28, 2010 at 9:00am
As election fever (as well as volcanic dust) sweeps the country, we have had a look at the manifestos of the 3 major parties to see what they promise to do for small and medium businesses. Our view is that real steps need to be taken to support SMEs through the recession and recovery process, and that means taking measures to help SMEs get the finance they need at a reasonable price, reduce regulation and red tape, and reform the tax system. Big businesses certainly seem to be siding with the Co....
(read more...)Monday April 19, 2010 at 6:10pm
I was fascinated to read Emma Wimhurst’s article in the Independent small business section. Her views are, to say the least, controversial:"We’re all fed up with the R-word, but I believe the economic downturn has done many business owners a favour. It’s grabbed us by the profit margins and warned us to make changes to the way we do things, or else. It’s been a positive motivator. So why isn't everyone listening? "Many businesses have tumbled into debt or closur....
(read more...)Wednesday February 3, 2010 at 10:12am
Belatedly, in the Blog anyway, I'd like to welcome on board Commercial Property Solicitor Paul Harrison.
Paul joins us from a firm with offices in Milton Keynes and Northampton and from his own Northampton base will provide legal advice to business and property owners thoughout the Midlands.
Paul, who joins Steve Petty in our
Commercial Property Team acts for a wide range of property owners and occupiers. He's especially experienced in:
Advising on all aspects of acquirin....
(read more...)Monday December 14, 2009 at 2:59pm
Cousins Business Law licensing specialist Nigel Musgrove has been named as a leader in his field in Chambers UK 2010.Nigel specialises in licensing and gaming law advising breweries, pubcos, hotels, pubs, restaurants and clubs. He has acted as legal adviser to a local authority during the licensing transitional stage.
Nigel is an Affiliate Member of the British Institute of Innkeeping and teaches monthly on their personal licence holder qualification.
Nigel, who joined Cousins Business L....
(read more...)Wednesday December 9, 2009 at 6:37pm
Giving with one hand, taking away with the other? The chancellor’s pre-budget report is perhaps no big surprise in delivering both pluses and minuses for the small business owner. Along with The Federation of Small Businesses (FSB), I welcome the chancellor's decision to defer the one pence rise in corporation tax for small firms. This increase had been due to come into effect from 1st April next year, but will now be delayed until April 2011. I’m sure this deferral will help some sm....
(read more...)Monday November 9, 2009 at 1:31pm
A Federation of Small Business survey showed that an average SME spends 7 hours every week coping with red tape; and a Federation of Private Business survey revealed that the cost to SMEs of compliance was £9.3 billion each year.With so many SMEs struggling in the present economic climate shouldn't the Government be dealing urgently with reducing the regulatory burden on the SME sector? Whilst some of the red tape comes from UK Government initiatives, most originates in the....
(read more...)Thursday October 15, 2009 at 12:20pm
It’s heartening to read in the Independent that small and medium sized firms are ‘poised to lead the country out of recession.’ Our experience of SMEs – our clients – is that they are indeed innovative and determined to succeed as the Independent’s research suggests. But it’s more than that; with many being owner managed, we see a real spirit of enterprise coupled with grit and determination. Many of our clients have spent a lifetime working in or on the....
(read more...)Thursday October 8, 2009 at 10:26am
The new Companies Act has made some changes as to who directors are and registration requirements. Most of these new rules came into effect on 1st October 2009 but it seems many Directors know nothing about them.Who is a director?A director is anyone who has either been formally appointed as a director (by the shareholders or board as set out in the company’s Articles), occupies the position of director (even if they are called something else) or someone whose directions or instructio....
(read more...)Friday August 21, 2009 at 7:00pm
There’s a new feeling in the air in certain quarters – one of optimism – and I’m sure I’m not the only one who’s feeling it. For those of us who follow all the research statistics about SMEs and the recession, this summer has been full of conflicting news. There have been many days where the good news statistics were evenly balanced by the bad news statistics. It looked like green shoots had germinated but would they grow or can we expect them to whither in th....
(read more...)Tuesday August 18, 2009 at 4:28pm
As businesses continue to struggle at the moment, there’s been a recent increase in the number of SMEs who are making Directors redundant. It can often make sense: if a company’s activities have shrunk, with fewer sales and a reduced workforce, it can now appear too top heavy and under performing directors might be at risk. Handling a Director redundancy can be much more complicated however than making a staff member redundant as we explain in the more detailed article on Director Re....
(read more...)Tuesday August 11, 2009 at 6:42pm
It is estimated that the first serious wave of Swine Flu will hit the UK between August and November this year with the cities being affected more than the countryside. This means that approximately 12% of the workforce nationally is likely to catch it during this period. The impact on SMEs is likely to be particularly severe. The problem is that it spreads easily from person to person, which is likely to mean that, once it takes hold in a particular workplace, far more than the 12% average coul....
(read more...)Friday July 24, 2009 at 4:37pm
Solicitors firms outside London are showing no signs of a recovery. According to an article in The Times this week, many such firms saw their profits fall by more than a third last year. The Article reports that many firms are imposing salary cuts of 10% or so in return for longer holidays as a way of cutting costs. I have seen this happen in firms in the Midlands area too and many very able solicitors are finding their route to an equity partnership blocked – why would existing partners w....
(read more...)Wednesday July 22, 2009 at 4:56pm
Yes, according to new research published today by Creditsafe. They say that 33% of British firms are planning to stop using cheques to pay other businesses within the next 12 months, and that 11% are planning to stop accepting cheques altogether! Instead, they plan to rely on direct bank transfers (such as BACS) and debit and credit card payments. Reasons given were that these were more traceable, more efficient and reduced the need for manual processing. They estimate that the savings to the Br....
(read more...)Friday July 17, 2009 at 9:45am
The economic news continues with its mixture of good and bad statistics as to the state of the economy. The bad news is yesterday’s unemployment figures. These revealed that unemployment rose by 281,000 over the three months to May. There are now 2.38 million unemployed, which is the highest level since 1995. 7.6% of the economically active population are now unemployed, according to the Office for National Statistics, which compares with 6.9% over the three months to February. There is so....
(read more...)Thursday July 9, 2009 at 10:55am
The Cranfield School of Management has identified six behaviours that successful owner-managers possess. Why not test yourself against their list of behaviours which are about:
taking control,
being confident,
being distinctive,
being strong
making wise decisions
being ready to take advantages of opportunities that others will miss.
Nothing particularly novel in the list I don't support but the video on their website explaining these behaviours certainly makes y....
(read more...)Tuesday July 7, 2009 at 11:11am
Today's British Chamber of Commerce figures suggest that British business is over the worst of the recession. Let's hope they've got that right.
The survey data from 5,600 companies shows progress in both the manufacturing and service sectors with most key indicators improving in the last quarter.
Looking more closely at the data however I wonder how much of this is just trying to talk ourselves out of the problem. Not that I am against that - afterall some businesses I t....
(read more...)Tuesday June 23, 2009 at 1:37pm
It's a question that seems to be concerning many business commentators and it's one we often debate with our own clients. In the legal profession we see many small, high street legal firms struggling as parts of the business are wiped out with the collapse of the housing market and the frailties of their financial systems are exposed. Conversely entrepreneurs and innovators seem to be welcoming the downturn as an opportunity to launch challenger brands, innovative products and solutions. But wil....
(read more...)Monday June 1, 2009 at 6:32pm
Another sign that the recession might have bottomed out is a recent survey by the Forum of Private Business. Their survey reports that confidence in the SME sector has shown a slight improvement: 26% of respondents said the viability of their business had improved in over the past month, double those who thought it had got worse. Dissatisfaction with banks was still reported as a problem, with 18% saying that the support offered by their bank had deteriorated in the last month compared with 12% ....
(read more...)Thursday May 14, 2009 at 7:08pm
When can we expect a recovery? This must surely be the question all SMEs are asking themselves. Most have adjusted to the recession as best they can, costs have been cut, cash flow managed more effectively and surplus labour made redundant. It has been painful, profits have been slashed, if they exist at all, but we hear of more and more businesses saying that they think they will survive the recession. But just how much longer until the belts can be loosened? There has been some talk in recent ....
(read more...)Friday May 1, 2009 at 6:06pm
The
Insolvency Service today published their statistics for the number of company insolvencies for the 1st quarter of 2009. These show that there were a total of 4,941 liquidations in England and Wales (an increase of 56% compared to a year ago). Of these, 1,579 companies were wound up by a court (an increase of 43.6% over the year) and 3,362 companies put themselves into liquidation (an increase of 62.5% over the year). From our experience, the main cause of liquidations is cash-flow problems o....
(read more...)Thursday April 30, 2009 at 11:10am
Licensing solicitor Nigel Musgrove has joined the Cousins Business Law team this month, to strengthen our litigation team and offer specialist licensing advice.
Nigel brings a wealth of experience in both licensing and dispute management and litigation.
As well as being a solicitor, Nigel is a published author having penned The Licensing Handbook, a plain English Guide to
licensing law.
Anyone about to open a licensed premises would be well advised to read Nigel's article - Opening licensed p....
(read more...)Monday March 9, 2009 at 6:00pm
According to a recent poll by SmallBusiness.co.uk, 80% of those polled said their banks have failed to offer support; 48% said their bank had no understanding at all; 28% said they had been supportive verbally but not in action; and 10% said that their overdrafts had been cancelled. On the positive side: 7% said their bank had been more supportive than expected, and 4% said they had been very constructive and helpful. With these sorts of client-care statistics, you’d expect any modern busi....
(read more...)Friday March 6, 2009 at 5:41pm
The latest figures from the British Retail Consortium (BRC) suggest things aren’t quite as bleak for retailers as the media have been suggesting. The Retail Sales Monitor January 2009, from the BRC and advisory services firm KPMG, shows values increased by 1.1% on a like-for-like basis when compared to the same month last year. This represents the best performance since May 2008, when sales were spurred by sunny weather. Interestingly food sales were the driver of the increase, displaying ....
(read more...)Wednesday March 4, 2009 at 7:17pm
As cash flow is becoming an increasing issue for SMEs, we are finding that more and more creditors are issuing Winding-Up Petitions. These can be a very effective way of getting a company to pay its debts. A Winding-Up Petition will be delivered personally to the company’s office but, unlike most court proceedings, the documents do not state exactly what should be done when one is received. What must be done is to take immediate action and legal advice. If the matter is not resolved within....
(read more...)Friday February 27, 2009 at 6:59pm
There’s hardly a day goes by without a further announcement of solicitors being made redundant or being forced to accept a drop in salary. Those worst affected are the more senior solicitors, as solicitors’ firms push more trainees and newly-qualified lawyers forward to handle the day-to-day casework that more experienced lawyers used to do. In recent weeks, we are also hearing of partners being made redundant, which means that employment protection legislation can be side-stepped. I....
(read more...)Wednesday February 25, 2009 at 6:24pm
Not according to the Federation of Small Businesses (FSB) whose recent survey claims measures like the cut in VAT, pledges on payment practices and bank lending guarantees have done little to improve the situation facing small companies. Half of the 4,000 respondents in the FSB survey had experienced a fall in trade over the past two months, with getting paid still one of the biggest complaints. With this, and a new study from the Confederation of British Industry showing firms expecting the fin....
(read more...)Wednesday February 11, 2009 at 2:00pm
This blog is a plea to all business owners.
Please, please, please - if you see a business dispute on the horizon, NEVER ignore it and leave it to fester. I can tell you from nearly 20 years of dealing with business disputes that the sooner you tackle problems the better.
We covered the topic in our January Ezine (Spotting a Business Dispute on the Horizon), when I suggested three obvious signs that a dispute might be looming: payment delays, communication drying up and guilt.
In....
(read more...)Thursday February 5, 2009 at 10:46am
Cousins Business Law has published a Guide to doing business in the UK. The Guide covers:
The issue of jurisdiction and the laws of England and Wales
Business structure
Trading laws and regulations
Employment and staff issues
Property
Handling business disputes
Although written for overseas business owners who are either currently doing business here or are considering trading in the UK it’s also a useful ‘quick guide’ for British busines....
(read more...)Tuesday January 27, 2009 at 11:40am
Under the new Companies Act, Companies House are entitled to charge penalties for the late filing of Annual Accounts . These will come into force on 1st February 2009. Yesterday, they announced that new penalties will be as follows: For Private Companies (Ltd's):Less than 1 month late: £150Between 1 month and 3 months late: £375Between 3 months and 6 months late: £750More than 6 months late: £1,500For Public Companies (PLCs): Less than 1 month late: £750 Between 1 m....
(read more...)Wednesday January 7, 2009 at 7:20pm
If the last 5 years are anything to go by, businesses will continue to face pressure from new rules and regulations, especially around employment policies and practice. Let's just hope that some sense prevails, given the current challenges faced by all firms.
In the meantime, this extract from our December ezine details some of the known legal changes coming into effect in 2009.
The Health and Safety Offences Act comes into force in January 2009. The Act will increase penalties for b....
(read more...)