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PRACTICE NOTES
STOP PRESS: With effect from 1 January 2027, section 25 of the Employment Rights Act 2025 (ERA 2025) amends the qualifying period for ordinary unfair dismissal set out in section 108 of the Employment Rights Act 1996 (ERA 1996) from two years to six months, and removes the cap on the compensatory award in ERA 1996, s 124. Transitional provisions are set out in the Employment Rights Act 2025 (Commencement No 4 and Transitional and Saving Provisions) Regulations 2026, SI 2026/559. For information on the implications of the reduction in the unfair dismissal qualifying period for probationary periods, see Practice Note: Probationary periods. This Practice Note will be reviewed shortly. This playbook provides guidance for drafting and negotiating an executive service agreement for a director or senior employee. This playbook includes a preferred position and a fallback position for the most commonly-negotiated clauses. It may not, however, address every issue that may arise in the negotiation of a particular executive service agreement. This playbook template can be used by lawyers acting for the employer or in-house
GLOSSARY
a non-binding ADR process where, after a semi-formal hearing before a tribunal consisting of a senior executive from each party and a third party neutral, the tribunal party representatives try to negotiate a settlement assisted by the neutral
GLOSSARY
An executor is the person named in a valid will to administer a deceased person’s estate: identifying, securing and realising assets, settling debts, taxes and expenses, and distributing the residue to beneficiaries under the will. Their authority derives from appointment in the will; in practice they must obtain a grant of probate (England & Wales, Northern Ireland and Ireland) or confirmation (Scotland) before dealing with most assets. Executors are fiduciaries and must act with due care, keep estate accounts, act impartially between beneficiaries, and avoid conflicts.Usage is broadly consistent across the UK and Ireland and is recognised in succession and probate legislation and case law. In England & Wales and Northern Ireland, “executor” sits within the wider concept of “personal representative”; if no executor is appointed or able to act, the court issues letters of administration to an administrator on intestacy or otherwise. Multiple executors may act; one may renounce or have power reserved; the chain of representation may apply.In Scotland, an executor named in a will is an executor-nominate; if none is available, the court appoints an executor-dative. Confirmation is required to ingather estate assets. In Ireland, similar principles apply under the Succession Act 1965 (grant of probate or letters of administration).
GLOSSARY
A legal representative of a deceased person who administers the deceased's estate.
GLOSSARY
An individual who administers a deceased person's estate in England, Wales and Northern Ireland, having been appointed in the Will. The Scottish law equivalent is executor nominate.
GLOSSARY
A person appointed by the court to gather and distribute the estate or property of a deceased person.
GLOSSARY
A person not lawfully appointed but who has taken it upon himself to administer the estate or intermeddles with the administration of the estate.
NEWS
Private Client analysis: An executor’s administration action brought under CPR 62.2(1)(a)(i) to determine the ownership of a chattel worth just £580, claimed by the one of the deceased’s children, did not fall within that Part and was held to be misconceived and not appropriately and reasonably brought. Consequently, it was found that the executor’s disproportionate costs of about £67,000 were not properly incurred and therefore could not be indemnified out of the estate. Written by Oliver Hilton, barrister at Radcliffe Chambers, Lincoln’s Inn.
NEWS
Private Client analysis: The court made an order restraining two executors (including a solicitor) from dissipating the Estate’s assets pending the determination of the claim for their removal. It then appointed a trust corporation in their place, ordered they pay the beneficiaries’ costs assessed on the indemnity basis and found the executors had no right of indemnity in respect of the costs of the proceedings. Sitting as a High Court Judge, His Honor Judge Matthews re-affirmed the principles governing removal; addressed the interesting question of whether an executor has a duty to inform beneficiaries of their interest; and gave guidance on the often hard fought issue of indemnities in respect of the costs of removal applications. Written by Toby Bishop, barrister at 5 Stone Buildings (counsel for the claimants).
GLOSSARY
The person named in the Will of the deceased to gather and distribute the estate or property of a deceased person.
Q&As
The answer to this question depends on whether or not (i) the deceased executor (D) was the sole executor of the estate that they were due to administer (the Estate) and (ii) probate had been granted in respect of the Estate before D’s death. We have considered each scenario below: • if D had one or more surviving co-executors of the Estate and died after probate was granted, the surviving executors will continue in post without a replacement executor succeeding D. Effectively D’s duties as an executor of the Estate are
NEWS
Restructuring & Insolvency analysis: This decision clearly demonstrates the dangers of dealing with assets falling within the assets of a deceased’s estate, where that estate is insolvent and subsequently the subject of an insolvency administration order pursuant to the Administration of Insolvent Estates of Deceased Persons Order 1986, SI 1986/1999 (DPO 1986). In such cases, section 284 of the Insolvency Act 1986 (IA 1986) as amended by the DPO 1986 operates to avoid any dispositions from a deceased’s estate from the date of death (which on the facts of this case, was almost seven years before the making of the insolvency administration order). The judge found that by operation of IA 1986, s 284, the sole executor held various assets that she had received from the deceased’s estate in her personal capacity on trust for the insolvent estate of the deceased. Furthermore, the judge found that due to her position as executor of the deceased’s estate and the application of the ‘no-conflict rule’ she was not in a position to exploit various opportunities and as such, held the profits of those opportunities on constructive trust for the deceased’s estate. Written by James A Davies, barrister at Enterprise Chambers.