HMRC preferential status and the impact on personal guarantees
HMRC preferential status and the impact on personal guarantees The government’s reinstatement of HM Revenue & Customs (HMRC) to the position of a secondary preferential creditor in insolvent liquidations comes at a time when many businesses are being squeezed and cash flow is poor. Lenders may be more inclined to seek personal guarantees before releasing new funding, which could have the effect of slowing or stopping growth as directors hesitate to risk personal assets. Those creditors holding personal guarantees
Wrongful or insolvent trading: Can company directors be personally liable?
Wrongful or insolvent trading: Can directors be personally liable? Wrongful trading occurs when company directors continue to trade past the point when they knew or should have known that there was no reasonable prospect of avoiding insolvent liquidation and in addition they did not attempt to minimise potential loss to the company’s creditors at every step. It is an offence under section 214 of the Insolvency Act 1986, with the possibility of directors being made personally liable for losses
The FCA and business insurance: Are Covid-19 interruptions covered?
The FCA and business insurance: Are Covid-19 interruptions covered? Following disputes and disagreement over whether business insurance companies were required to pay out on business interruption policies following the Covid-19 outbreak, the Supreme Court has made a ruling which will help many businesses make successful insurance claims. On 15 January 2021, the Supreme Court gave its verdict in the business insurance interruption test case arising from the pandemic, Financial Conduct Authority v Arch Insurance UK) Ltd and others [2021]
The Legal Industry in 2021: Advice, guidance and representation
The Legal Industry in 2021: Advice, guidance and representation The difficulties of 2020 forced the legal industry to adapt quickly to provide advice, guidance and representation to clients during lockdowns and commercial turmoil. We understand more about the changes in the legal industry in 2021. Lawyers have on the whole moved rapidly to adjust their way of working to make sure they are able to support clients, whose need has become greater in a number of key areas including
Employment law: What changes should we expect in 2021 following the pandemic?
Employment law: What changes should we expect in 2021 following the pandemic? Employment law changes following the pandemic and changes expected in 2021 As the New Year rolls around, the government’s Coronavirus Job Retention Scheme (CJRS) remains in force, with the possibility of the Job Support Scheme to follow on. Combined with other planned legislative changes, employers will have plenty of new rules in employment law to deal with in 2021. Other major new rules include a change to
Covid-19 debt recovery: How can I make a claim during the pandemic?
Covid-19 debt recovery: How can I make a claim during the pandemic? While the government’s temporary rules seek to protect businesses during troubled times, curbing Covid-19 debt recovery measures is increasing the pressure on many. We take a look at the new legislation and at what options are available for those who are seeking payment from debtors. With many businesses struggling to survive the continuing commercial turmoil, Covid-19 debt recovery has become a difficult proposition. The government is
Partnership disputes: How can I avoid a litigation case arising from a bad partnership agreement?
Partnership disputes: How can I avoid a litigation case arising from a bad partnership agreement? A well-drafted agreement forms the basis of a strong partnership. By clearly setting out the rights and responsibilities of each partner, partnership disputes can often be avoided. When a new partnership is set up, sometimes the partnership agreement is not substantial enough to deal with changes in the future. Originally, partners may have all had the same vision and been confident in their ability
Launching a new business in the UK: What do I need to know before I get started?
Launching a new business in the UK: What do I need to know before I get started? Notwithstanding the current difficult climate caused by covid 19, new businesses continue to be formed. Creating a new enterprise is exciting but the list of considerations before launch day is long. At Lincoln & Rowe we work with start-ups to ensure they have a robust legal foundation in place to give them the best chance of success. Behind every thriving enterprise is