Business Law

A Q&A published by the Law Society’s Company Law Committee covers the practicalities of using electronic signatures in a business context. Sam Lyon, Head of Corporate and Commercial reports. Electronic signatures can take different forms, from simply typing in your name or pasting a scanned image of your physical (or “wet”) signature, to clicking a button to confirm agreement where your identity has been sufficiently verified. The Q&A covers a…

The government has extended the ban on business evictions until the end of March because of the continuing Covid pandemic. Stephanie Johnson Associate Solicitor provides an update. There will also be a review of commercial landlord and tenant legislation, to address concerns that the current framework does not reflect the current economic conditions. This final extension to protections from the threat of eviction will give landlords and tenants 3 months…

The government is considering a crackdown on what it describes as unfair employment contracts that restrict worker freedom. Joanne Stronach Head of Employment & HR reports. The measures could include banning the use of exclusivity clauses, which prevent workers from taking on additional work with other employers. This would apply to workers whose guaranteed weekly income is below the Lower Earnings Limit, currently £120 a week. The change would put…

A businessman has won his appeal against his disqualification from being a company director. Sam Lyon Associate Solicitor and Head of Corporate & Commercial reports. Gabriel Gatheru Rwamba had been disqualified in 2009 for four years for failing to appropriately monitor the company’s finances. In 2010, interim orders permitting him to act as a director subject to various conditions were made. He breached that permission by failing to ensure the…

Businesses struggling with debt due to the Covid-19 crisis have been given extra breathing space to help them avoid insolvency. Mark Aspin Director & Head of Dispute Resolution provides an update. A temporary measure introduced by the Corporate Insolvency and Governance Act restricting the use of statutory demands and winding-up petitions, which was due to expire on 31 December 2020, has been extended to the 31 March 2021. This will…

Should I buy/sell the shares in a company or just its business and assets? When selling shares in a company, the entire business, including all assets and liabilities of the company all transfer to the buyer. Sellers tend to prefer this approach as it is a cleaner break for them and ensure they retain no liabilities going forward.A business and asset sale involves only specified business assets and liabilities of…

Business Dispute: Should I have a written partnership agreement? Yes. In the absence of a written agreement there’s the risk of argument as to what was agreed between the partners, and the law can impose things which you would otherwise never have intended.The costs of trying to fix a problem will be significantly more expensive than having a proper agreement in place at the outset to minimise the risks of…

Business Dispute: What types of company disputes do you deal with? We deal with a wide spectrum of business disputes, including:- Director disputes- Breach of director duties- Shareholder duties- Breach of shareholder agreements- Unfair prejudice petitions- Minority shareholder protection- Conflicts of interest- Insolvency disputes- LLP and partnership disputes

Business Dispute: What should I do if I am a director or shareholder in dispute? It is important that you take expert advice at the earliest opportunity. Taking no action could be construed as agreeing to the action taken by the other parties involved, or there may be specific time limits to take action. It is important to seek advice at the earliest opportunity.

Business Dispute: I’ve fallen out with my co-business owner, what are my options? There are many possible options that might be available if formal court action is necessary. These range from applying to the court for declarations up to winding-up the business. However, winding-up any business is a significant step. We actively encourage ways of Alternative Dispute Resolution between business owners to either find a joint way forward or, potentially,…