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Q&As
The Bradford Factor (also known as the Bradford Index, Bradford Formula or Bradford Scale) is usually used by employers to highlight persistent, short-term absence, which is either due to sickness or is unauthorised. It applies an extra weighting to the number of absences, and recognises the fact that numerous individual short absences can be more disruptive to an employer than a lesser number of lengthy absences. It is therefore a measure of sickness absence which combines information on both frequency and length of absence. The score is calculated as the number of spells of absence squared, multiplied by the total number of days absent. For example,
Q&As
Our Practice Note: Merger of freehold and leasehold titles—law and land registration procedure covers the law and land registration procedure in relation to the merger of freehold and leasehold titles, including looking at charges, and the effect of merger on underleases, easements and restrictive covenants. A lease terminates as a result of merger when both the lease and the reversion on that lease become vested in the same person—see Rye v Rye. However,
Q&As
The bankruptcy estate and limitations on disposing of property comprised in the bankruptcy estate Until a bankruptcy is annulled, a bankrupt has no legal power to deal with any assets they owned or had an interest in prior to bankruptcy. This is because as soon as a bankruptcy order is made against an individual, all of their assets (subject to some statutory exceptions—see section 283(2) of the Insolvency Act 1986 (IA 1986)) form part of their bankruptcy estate and vest in either the official receiver (OR) or a trustee in bankruptcy as soon as they are appointed to administer the estate (IA 1986, s 306(1)). The bankrupt ceases to own or have power to deal with his former property legitimately even if he retains control or possession of that property. The definition of property
PRACTICE NOTES
In the construction industry, parent company guarantees (PCGs) are commonly given to the employer by the main contractor’s holding company to guarantee the performance of the contract by the subsidiary main contractor. This is a requirement in almost every construction contract where the contractor has a parent. Most frequently, contractors are required to provide a PCG, executed by their parent, at the time of contract signing. Recourse against the parent under the guarantee will thereby be available to the employer if the contractor defaults. PCGs are found in certain other situations in construction. Occasionally, in some bespoke construction contracts, the guarantor will be a party to the contract itself, but only for the purpose of providing the guarantee. Sometimes collateral warranties are required to be given by contractors to lenders that contain PCG provisions but these are typically resisted. Also, guarantees may sometimes be given to contractors (or subcontractors) by, for example, a developer’s holding company: this is done to secure payments due under the contract. In a similar way, parent companies sometimes agree
Q&As
The regulated activity contained in Articles 61(2) and 61(3) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO) is discussed in chapter 4.8 of the Financial Conduct Authority's (FCA) Perimeter Guidance Manual (PERG 4.8). The guidance does not contain any further guidance as to the meaning of 'taking
Q&As
Section 213 of the Housing Act 2004 (HA 2004) sets out rules governing how a landlord must deal with a tenancy deposit which is paid by their tenant. These rules include a requirement that the landlord comply with the initial requirements of an authorised scheme within 30 days of being given the deposit and that the landlord provide certain prescribed information to the tenant. HA 2004, ss 214–215 set out the consequences where a tenancy deposit has not been dealt with correctly: • HA 2004, s 214 gives a tenant the right to bring proceedings in the County Court • HA 2004, s 215 provides that a landlord cannot
Q&As
This Q&A assumes that the purported share buyback is an off-market share buyback and that it has been carried out by a private limited company. The requirement for a share buyback contract and shareholder authority A limited company may only carry out an off-market share buyback: • pursuant to a contract that is approved by a shareholders’ resolution before the share buyback takes place in accordance with section 694 of the Companies Act 2006 (CA 2006), or • where the share buyback is for the purposes of, or pursuant to, an employees’ share scheme, if it has first been authorised by a shareholders' resolution The contract required for an off-market share buyback (unless it is a share buyback for the purposes of, or pursuant to, an employees’ share scheme) must be approved by a shareholder resolution (rather than the specific share buyback itself). This is the case whether the contract is conditional or not. This means either: • the
Q&As
In answering this Q&A, research has been limited to cover a UK website selling goods to consumers in any part of the EU and in conducting our research we have focussed on consumer laws in the EU. Any business with a website will need to comply with various rules and regulations. The nature of these rules and regulations will vary depending upon whether the website is business-to-business (B2B) or business-to-consumer (B2C), and whether the website offers the sale or supply of goods and/or services or simply just the provision of information or other content. Electronic Commerce (EC Directive) Regulations 2002, SI 2002/2013
Q&As
This Q&A considers whether a failure to file a shareholders’ resolution approving a share buyback or a share buyback contract (as the case may be) at Companies House would render the share buyback void pursuant to section 658 of the Companies Act 2006 (CA 2006). This Q&A assumes that the shareholders’ resolution in question has been validly passed in accordance with the relevant provisions of CA 2006. The requirement to file a shareholders’ resolution approving a share buyback Since 30 April 2013, a contract for an off-market share buyback has needed to be approved by ordinary resolution (unless the company’s articles of association require a higher majority or unanimity). There is no requirement to file that ordinary resolution at Companies House. Prior to 30 April 2013, such a share buyback contract had to be approved by special resolution and the special resolution needed to be filed at Companies House within 15 days of being passed Both an on-market share buyback
Q&As
Trustees often wish to exclude liability as they enter into the transaction (in this case a transfer) personally. Whether this is accepted by the buyer is a matter of negotiation. Here, the risk for the second trustee is likely to be minimal as they are simply selling a single asset and so they may be persuaded to drop this requirement. The buyer needs to know that the trustee has been duly appointed and can accept receipt of the sale proceeds in order to overreach any equitable interests. In deciding how to proceed,
PRACTICE NOTES
ARCHIVED: This Practice Note has been archived and is not maintained. This Practice Note summarises the changes made in the NEC4 standard form construction contracts as compared to the NEC3 editions. It focuses on the NEC4 Engineering and Construction Contract (ECC), however many of the changes in the ECC are representative of those found across the NEC suite more widely. The NEC describes NEC4 as building on NEC3 in a way which is an ‘evolution not revolution’. Most of the changes found in NEC4 appear to have been made to reflect good practice and/or reduce the need for Z clauses (ie bespoke amendments). For more information about NEC contracts generally, including how they are structured, see Practice Note: NEC contracts—introduction. Publication of NEC4 The NEC4 contracts were published by the Institution of Civil Engineers on 22 June 2017. NEC4 editions of the following contracts, and associated guides, were released (italicised items are entirely new to the suite): • Engineering and Construction Contract, Engineering and Construction Short Contract, Engineering and Construction Subcontract and Engineering and Construction Short Subcontract
Q&As
This Q&A refers to a business to business transaction. Contract terms Initially, it will be necessary to review the express and implied terms of any contract (written or verbal) between the supplier and the customer in respect of their arrangement for the storage and collection of the goods. Generally, the courts will apply an objective test based on what a reasonable person, having all the background knowledge which would reasonably have been available to the parties in the situation they were in at the time of contracting, would have understood the contract to mean. The courts will consider what the words used by the parties actually mean in the specific context of the contract as a whole, as understood against the factual background. For more information,