General

When a supplier to a marquee company was not paid for goods it had supplied, the directors told the supplier that the company was waiting for an insurance claim to be settled, after which payments would be made as usual. In reality, there was no insurance...

The Bribery Act 2010 came into force on 1 July 2011. Under Section 2 of the Act, it is an offence for a person to request, agree to receive or accept a financial or other advantage intending that, in consequence, a relevant function or activity should be...

The penalties for engaging in anti-competitive behaviour are very substantial but, recognising that cartel (price-fixing) behaviour is difficult to detect, the Office of Fair Trading (OFT) has a ‘leniency programme’, which operates to give...

Company liquidations have edged up in the first quarter of 2011, with 4,121 companies being subject to winding-up orders. Compulsory liquidations fell by more than 10 per cent compared with the same quarter in 2010, but creditors’ voluntary...

A recent survey of businesses carried out by the Institute of Chartered Accountants in England and Wales has found that, in general, the availability of finance for business from banks and other providers of external finance has eased slightly but is still...

The law relating to the fiduciary duties of directors is stricter than many company directors might think, as a recent case illustrates . The director of a company was given the loan of ‘a second-hand excavator and dumper’ for his personal use,...

A covenant can either represent a commitment to do something or a commitment not to do something. In either case, the party faced with a breach of the covenant has a range of options available to them for obtaining a legal remedy, one of which is to obtain a...

Directors of companies are entitled to any information they reasonably request about the company of which they are a director. It is therefore normal for a director to possess a great deal of confidential information about the company. Directors are also...

The Department for Culture, Media and Sport has issued a consultation aimed at simplifying the licensing laws for events attended by fewer than 5,000 people. Currently, events organisers have to apply and sometimes pay for licences for events which pose...

A recent case has confirmed that a clause in a contract which absolves one party from paying the other in the event that the second party becomes insolvent is invalid as it infringes the ‘anti-deprivation’ principle. The principle exists to...

When a claim for damages is made on the basis of ‘loss of a chance’, having good quality expert evidence is essential. Most people know that it is possible to claim damages, where appropriate, for the loss of future earnings. Normally, such...

If your property has been damaged in the recent riots, you may well find that your insurance policy will not cover your losses. Most policies exclude damage resulting from 'riot', which in law, means when 12 or more people are present at the disturbance. If...

A recent case in the Court of Appeal has demonstrated that terms agreed by email can amount to a contract despite a formal contract referred to in the emails remaining unsigned. The case concerned a commodities trader and a fuel storage company that had...

The faltering steps the economy is taking towards recovery seem to be breeding a degree of overconfidence on the part of some businesses, but there is no reason to abandon good credit control practice. According to a recent report from Creditsafe, more than...

The Bribery Act 2010 comes into force today (1 July 2011). The implementation of the Act, originally scheduled for April, was delayed to allow time for the guidance on it to be finalised. Section 7 of the Act makes it an offence for a commercial...

The Office of Fair Trading (OFT) has the power to apply for an order banning a person from being a director in cases in which competition law is breached. Orders are granted under the Company Directors Disqualification Act 1986 and are issued when the...

Keeping company records up to date is not always a top priority for the directors of smaller companies. However, failing to keep the shareholders’ register up to date can have a downside if a share transfer has occurred but the new owner’s name...

It is often considered that the sorts of disclosures that a company must make to regulatory authorities or in its annual accounts are not matters that need to be given close attention. However, where the failure to disclose such information is significant,...

Bribery is coming under increasing attention following the passing of the Bribery Act 2010 , under which bribery is a criminal act. Whilst implementation of the Act, which was passed under the previous administration, has been delayed so that the Government...

European Directives on comparative advertising based on price differences have been clarified, following preliminary rulings from the European Court of Justice (ECJ) in a case referred by the French commercial courts. The case was brought before the...

A survey of business confidence from the Institute of Chartered Accountants in England and Wales, based on the last quarter of 2010, shows a sharp decline, with confidence amongst those in the production industry having fallen more sharply than that in...

A recent case illustrates that insurers will often seek to avoid paying claims under their policies even in circumstances where they would normally be expected to be liable. The case involved a processing plant which supplied the claimant, a pet food...

When a contract contains a ‘penalty clause’ for breach of the contract, the clause will not be enforceable if it is punitive, rather than a genuine attempt to compensate the other party based on an estimate of the loss they would incur as a...

A case which recently came before the High Court demonstrates the importance of taking care over the service of documents, if only to prevent costly litigation over whether a document was validly served. In the case concerned, a construction dispute was...

The Office of Fair Trading (OFT) has published two draft documents, on which it has recently held a consultation, aimed at helping businesses and company directors comply with competition law. The first document, How Your Business Can Achieve Compliance ,...