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Q&As
Where an application is made for a financial consent order to be approved outside of the HMCTS online platform, some courts take the view that where the draft consent order includes provisions dismissing the parties' claims for financial provision, it is necessary for those claims to be brought formally before the court. Accordingly, at the same time as lodging the draft order and statements of information, some courts also require both parties (or just the respondent where there are existing financial order proceedings) to file an application in Form A marked 'for dismissal purposes only'. The Financial Remedies Working Group (FRWG) recommended in its interim report that once a Form A is issued by one party then, save where the application is expressly stated to be limited to the seeking of a particular remedy, all possible applications by both parties should be deemed to have been made, and may be granted or dismissed by
Q&As
In the case of Jervis v Harris, the Court of Appeal reviewed a covenant contained in an underlease which authorised the landlord to enter the premises to view the state of repair and to give notice of any wants of repair, and in default of the tenant remedying the same within three months, to undertake the work and recover the costs from the tenant. The tenant refused to allow the landlord to enter, and relied upon section 1 of the Leasehold Property (Repairs) Act 1938 to the effect that leave of the court was required. The Court of Appeal held that the clause was enforceable and the nature of the claim was debt, not damages. Section 1 does not apply as a result, as it relates only
Q&As
Under sections 4(1) and 4(2) of the Defective Premises Act 1972 (DPA 1972), where: • a landlord has a repairing obligation in respect of a defect (DPA 1972, s 4(1)), and • they knew or ought to have known that the defect existed (DPA 1972, s 4(2)) The landlord will owe a duty to take such care as is reasonable to ensure that all persons who might be affected by that defect are reasonably safe from personal injury or damage to their property caused by the defect. DPA 1972, s 4(3) defines defect for the purposes of the section. DPA 1972, s 4(4) extends the application of DPA 1972, s 4(1) to certain defects which fall out of its scope: ‘(4) Where premises are let under a tenancy which expressly or impliedly gives the landlord the right to enter the premises to carry out any description of
Q&As
It is assumed that the property in question is a residential property in England and that the lodger shares communal areas and facilities of the property with the landlord. A landlord’s duties to provide energy performance certificates, gas safety certificates, smoke alarms and carbon monoxide detectors, and electrical safety reports are governed by several different statutory instruments. Energy performance certificates The Energy Performance of Buildings (England and Wales) Regulations 2012, SI 2012/3118, reg 6 provides that an energy performance certificate must be provided to a prospective buyer or tenant where a building is to be sold or rented out. A building is defined as a roofed construction having walls, for which energy is used to condition the indoor climate, and includes a section, floor or apartment within a building which is designed or altered to be used separately. A guide to Energy Performance
Q&As
The exact formalities for dealing with the PSC requirements in the period between execution of a share transfer agreement and the registration of the new holder of the shares in the register of members depend to a significant extent on the existence or otherwise of certain provisions in the contract of sale. Typically, from the point of transfer of equitable title to shares, up to the time when the transferee is entered in the register of members, the transferor retains the legal title to the shares, but becomes a constructive trustee of the shares for the transferee. The nature of a constructive trust is comprehensively set out in Practice Note: Constructive trusts including an examination of the various circumstances in which such a trust may arise. One well-established circumstance is under a specifically enforceable contract, for example at exchange of contracts for the sale of land or the sale of shares. Recent
PRACTICE NOTES
Financial Condition A for Part 26A restructuring plans Restructuring plans (RPs) have been available since June 2020 provided that various conditions are met, including—Condition A: ‘the company has encountered, or is likely to encounter, financial difficulties that are affecting, or will or may affect its ability to carry on business as a going concern’. It is this extra requirement of financial Condition A which has led some to argue that unlike Part 26 schemes of arrangement (schemes) (which plainly can be solvent or insolvent, see Practice Note: Tracker of Part 26 scheme/Part 26A restructuring plan hearing dates), RPs are an insolvency proceeding (see Practice Note: Part 26A restructuring plans: history, rationale and scope and discussion at paras [15.56]–[15.67] of Howard, Warner & Beatty Restructuring Law & Practice). No further guidance is provided in the Companies Act 2006 (CA 2006) on the meaning or scope of the term ‘financial difficulties’, which is potentially very broad. Condition A is certainly a lower hurdle to satisfy for RPs than the corresponding requirement
Q&As
On 8 March 2015, the power to make a Sexual Offences Prevention Order (SOPO), formerly found in section 104 of the Sexual Offences Act 2003 (SOA 2003), was repealed. This repeal is subject to savings in relation to existing SOPOs, and of course existing SOPOs were unaffected by the legislative change (section 16 of the Interpretation Act 1978; section 114 of the Anti-social Behaviour, Crime and Policing Act 2014 (ABCPA 2014) which enacts this particular repeal). Duration of SOPOs All SOPOs take effect pursuant to SOA 2003, s 107(1) which provides that a SOPO— • prohibits the defendant from doing anything described in the order, or requires the defendant to do anything described in the order (or both), and • has effect for a fixed period (which must not
Q&As
A Schedule 2 Share Incentive Plan (SIP) must provide for the setting up of a trust to hold plan shares. The SIP legislation sets out various requirements for this trust, and the duties and responsibilities of its trustees. For further details, see Practice Note: SIPs—requirements relating to the trust and the trustee. As a result of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLR 2017), trusts where the trustees have incurred a UK tax liability must be registered with HMRC using the HMRC online Trust Registration Service (TRS).
Q&As
Under sections 210–219 of the Employment Rights Act 1996 (ERA 1996), continuity of service depends on: • when the continuous period starts • when the continuous period ends • whether there are any relevant breaks in continuity between the start and the end, and • whether any period of employment with another employer counts For information on continuity of employment generally, see Practice Note: Continuity of employment. If there is an interval of more than a week during which there was no contract of employment governing the relationship, ie the employee was dismissed or resigned and then subsequently (after the interval) re-employed by the same or an associated employer, that interval will not count towards continuity of employment, and continuity will be broken, unless it falls within one of three categories: • the employee was unable to work
Q&As
Are the payments ‘qualifying annual payments’? We assume that the payments meet the various case law tests for being ‘annual payments’ (in particular, that there is an obligation to make them, that they are capable of recurring and that they represent ‘pure income profit’ in the payee’s hands). They will not be regarded as ‘annual payments’ if they are trading receipts of the payee. To be ‘qualifying’, they must also satisfy section 899(2)–(5) of the Income Tax Act 2007 (ITA 2007). Each
Q&As
This Q&A refers to the requirement under the Companies (Miscellaneous Reporting) Regulations 2018 (2018 Regulations), SI 2018/860, reg 17 for certain companies with accounting periods beginning on or after 1 January 2019 to include in the directors’ remuneration report pay ratio information (and other supporting information) comparing the total remuneration of the CEO to the median (50th), 25th and 75th percentile full-time equivalent remuneration of the company’s UK employees. The requirement to provide pay ratio information applies to
Q&As
Where an individual signs a Will in a foreign language and it is known that they do not have a good understanding of that foreign language, there is a potential issue as to lack of knowledge and approval of the Will such that the Will could be held to be