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Case Study The tenants of an Agricultural Holdings Act 1986 (AHA 1986) protected tenancy wish to add their sons as tenants. The existing tenants are the elderly, but the sons are doing most of the farming now. The Landlord agrees to the proposal. Can this arrangement be the first assignment on retirement or will it terminate the AHA 1986 tenancy and replace it with a farm business tenancy? It is not uncommon for a tenancy with AHA 1986 to contain either an absolute or qualified (ie requiring the consent of the landlord) prohibition upon assignment. If the tenancy agreement is silent upon the point, either party can refer the tenancy to the First-tier Tribunal (Property Chamber) (Agricultural Land and Drainage), or the Agricultural Land Tribunal in Wales, for arbitration so as to include a covenant by the tenant not
Q&As
The basis for fixing the administrator’s remuneration is set out in Chapter 4 of the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 and the following may be useful: Remuneration and fees of an insolvency office-holder—overview. The question arises in circumstances where: • the administrator has stated in their proposals under paragraph 52(1)(b) of Schedule B1 to the Insolvency Act 1986 (IA 1986) that the company has insufficient property to enable a distribution to be made to unsecured creditors except out of the reserved fund which may have to be set aside out of floating charge assets, and • there is no creditor’s committee, or the committee does not
Q&As
We have limited this Q&A to cover legal challenges other than those for misfeasance under paragraph 75 of Schedule B1 to the Insolvency Act 1986 (IA 1986). The administrators’ role is to achieve one of the three purposes of the administration as set out in IA 1986, Sch B1, para 3 which are: • rescuing the company as a going concern • achieving a better result for the company's creditors as a whole than would be likely if the company were wound up (without first being in administration), or • realising property in order to make a distribution to one or more secured or preferential creditors In doing this, the administrators act for all creditors, not just the entity that appointed them. There
Q&As
This Q&A covers the position when a company in administration moves into liquidation, and where the liquidator being appointed is a person other than the administrator. Discharge from administration does not automatically mean discharge from liability for the administrator. This may need to be specifically applied for. Schedule B1, paragraph 98 of the Insolvency Act 1986 (IA 1986) was amended by the Deregulation Act 2015 (DA 2015) from 26 May 2015, which allows for the release of the administrator where there is to be no distribution to unsecured creditors other than by virtue of IA 1986, s 176A (the prescribed part). For more information, see Practice Note: How an administration comes to an end, in the section entitled How an administration comes to an end — Discharge from liability. If the company in administration
Q&As
You have asked: Does an agency worker continue to accrue annual leave while they are away from their assignment due to pregnancy or maternity? This query gives rise to a number of issues: • the agency worker’s entitlement to annual leave, or holiday • whether the agency worker is an employee • the nature of the right under Agency Workers Regulations 2010 (AWR 2010), SI 2010/93, reg 5 • the effect of the agency worker’s absence from work due to pregnancy or maternity on holiday accrual The right to holiday An individual has the right to holiday under Working Time Regulations 1998 (WTR 1998), SI 1998/1833, regs 13, 13A if they are a worker as defined in section 230(3) of the Employment Rights Act 1996 (ERA 1996). In addition, special provision is made in WTR 1998, SI 1998/1833, reg 36, for an agency worker who: • is not otherwise a 'worker' due to the fact that there is
Q&As
Under the Agency Workers Regulations 2010 (AWR 2010), SI 2010/93, reg 3, an individual is treated as having been supplied by a temporary work agency to work temporarily for and under the supervision and direction of a hirer, and as having a contract with the agency, if: • the agency initiates or is involved as an intermediary in the making of the arrangements that lead to the individual being supplied to work temporarily for the hirer, and • the individual is supplied by an intermediary (or one of a number of intermediaries) to work temporarily for the hirer The fact that a worker works through an umbrella company or a company in which the worker is the controlling shareholder and director will therefore not, in itself, take the worker outside
Q&As
HM Land Registry Practice Guide 68: amending deeds that effect dispositions of registered land sets out the requirements for registering a deed of variation which affects a registered lease. We would refer you, in particular, to section 4.5 of Practice Guide 68. HM Land Registry Practice Guide 25: leases—when to register also deal with deeds of variation. We would refer you,
Q&As
This Q&A assumes that the subject lease concerns property in England. Once served, a notice cannot be unilaterally withdrawn. A notice can only be ‘withdrawn’ or the right to enforce it waived, with the consent of the party to whom the notice is given. The effect of this in law is that a new lease is created by implication which takes effect from the expiry of the break notice (See Practice Note: Break clauses and notices—exercising breaks and conditions precedent under ‘Implied lease following withdrawal by consent’). There are obvious downsides if a new implied lease is created. For example, the new lease will not be contracted out of the Landlord and Tenant Act 1954 (LTA 1954) and any guarantors to the existing lease will be released. In contrast, the position is different if the break is conditional and the conditions have not
Q&As
The regulation of consumer credit The regulation of consumer credit sits with the Financial Conduct Authority (FCA). Parts of the Consumer Credit Act 1974 (CCA 1974) were repealed from 1 April 2014 with regulated activities coming under the Financial Services and Markets Act 2000 (FSMA 2000) and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO 2001). Regulated activities and consumer credit agreements Entering into a regulated credit agreement as a lender is a specified (regulated) kind of activity unless it is an exempt agreement under
Q&As
In answering your query, we have considered whether agreements under section 38 of the Highways Act 1980 (HiA 1980) (section 38 agreements) need to be accompanied by a bond. Section 38 agreements provide a mechanism for landowners to dedicate and for the local highway authority to agree to adopt a road to be maintained at the public expense, provided that the road is built to the required specification. For further information about section 38 agreements, see Practice Note: Highways—adoption agreements. In a situation where a section 38 agreement is entered into, prior to the road being built, it is common for a local highway authority to require a bond to be entered into in the value of the estimated cost of the works. This enables the local highway authority to draw on the funds in the event that the developer
Q&As
Wholesale supplies or retail sales? The wholesale supply of alcohol, referred to as ‘controlled liquor’, is defined and regulated by the Alcoholic Liquor Duties Act 1979 (ALDA 1979) as a result of the insertion of Part 6A by the Finance Act 2015. A sale of a controlled liquor is: • the sale of a dutiable alcoholic liquor on which duty is charged under ALDA 1979 at a rate greater than nil, and • the excise duty point for the liquor falls at or before the time of the sale See ALDA 1979, s 88A(2). Controlled liquor is sold wholesale if: • the sale is of any quantity of liquor • the seller is carrying on a trade or business and the sale is
Q&As
In the context of this Q&A, the company is a private company limited by shares and that the company will not be allotting shares at a discount (in accordance with section 580(1) of the Companies Act 2006 (CA 2006)). Furthermore, the company’s articles of association (and other constitutional documents) do not contain any provisions requiring member approval in relation to an allotment of shares to the directors. Subject to certain exceptions, member approval is required for substantial property transactions between a company and its directors as these transactions are particularly open to abuse. Under CA 2006, s 190, an arrangement must be approved by a resolution of the members of the company, or be conditional on such approval being obtained, where: • a company acquires (or is to acquire) a substantial non-cash asset from a director of that company (or that company’s holding company) or a person connected with the director of that company (or that company’s holding company),