Entrepreneurs’ relief
Dec 2012 I was asked to promote more awareness of various incentives which make the UK a very attractive place for entrepreneurs, and specifically the attractive tax incentives such as relatively low tax rates, Entrepreneurs’ Relief, the Enterprise Management Incentive Scheme, the Enterprise Investment Scheme and the Seed Enterprise Investment Scheme all of which are designed to encourage investment in SMEs, on which the resurrection of our economy depends. To oblige I am writing a series of short (for me) articles which will hopefully help to enlighten some of you on some of these schemes. Starting with this one about Entrepreneurs' Relief...
Earn-outs – how hard does the buyer have to try?
Oct 2012 A recent case has flagged some of the difficulties involved in covering both sides’ positions when it comes to negotiating earn-out provisions in a business sale, and the importance of the words which parties use in their agreements...
Are businesses allowed to bully?
Sept 2012 Some businesses like to bully other businesses into agreeing contracts. Usually this is allowed – the bigger stronger player or the one with the other up a barrel has more commercial muscle and is generally allowed to use it. But you can sometimes go too far, as shown by a recent case...
What’s the difference between a guarantee and a performance bond?
Sept 2012 It’s not always totally clear whether a particular document is a guarantee or a performance bond. Many guarantees include wording such as ‘we guarantee as primary obligor’, which is a bit inconsistent – you are either guaranteeing something or you are the ‘primary obligor’, ie the person with the primary obligation. A recent case made clear that you need to be very specific if what you want is a performance bond rather than a guarantee...
Do guarantees have to be signed and in writing? What about emails?
Sept 2012 Since I started in the law, and indeed since some 288 years earlier, the 1677 Statute of Frauds has required that a guarantee needs to be signed and in writing...
Is a director or employee thinking of leaving your business to go into competition?
Feb 2012 This recent High Court case clarified the position where a director or senior employee without restrictive covenants in his contract is planning to leave his company and to set up or go to work for a competing business...
Expert determination of fair value – Cream Holdings case
Feb 2012 Where a number of people go into business together using a company , they normally (should do anyway) have provisions in the company’s Articles of Association or in a shareholders agreement saying what happens if one of them leaves...
Guarantees – be careful!
Feb 2012 Most contracts you enter into can be terminated one way or another. They usually have inbuilt provisions saying that they last for a certain period or that the parties can terminate by giving a period of notice. And if they don’t the law is usually that either side can terminate by giving whatever notice period is ‘reasonable’. Guarantees often aren’t like that...