Law360: On 5 September 2024, the US, EU and UK signed a new legally binding international treaty, the 'Council of Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law'.

Definition of distribution A distribution is defined in the Companies Act 2006 (CA 2006) as including every description of distribution of a company’s assets to its members, whether in cash or otherwise, except for an issue of bonus shares and certain reductions of capital, redemptions of shares, share buybacks and distributions of assets to members on the winding up of a company (CA 2006, s 829). Dividends in specie The directors of a company may recommend that an interim dividend or final dividend is satisfied with non-cash assets (ie by a dividend in specie) if the company's articles permit this and the requirements of CA 2006, Pt 23 are complied with. The articles of association should be checked to: • ensure that they include the power to pay such a dividend, and if they do, that there are no restrictions on such dividends • determine whether they set out a specific procedure in relation to the approved and payment of such dividends (usually,

This Q&A considers the action a claimant can take where a defendant breaches a consent order in a Part 8 claim. A claimant cannot seek default judgment in a Part 8 claim under any circumstances (see CPR 12.2(b)). In Part 8 proceedings, a claimant can seek summary judgment

The role of an executor is to gather in and administer the assets of the estate and, having satisfied the liabilities of the estate, to distribute in accordance with the terms of the Will. If the estate is insolvent, the Administration of Insolvent Estates of Deceased Persons Order 1986, SI 1986/1999 and the Insolvency Act 1986 provide the order of priority to pay out creditors, with ordinary debts (which would include a judgment debt) ranking towards the bottom of this pecking order. See Practice Note: Insolvent estates and bankrupt beneficiaries. Claims brought against the estate are governed by Part 19 of the Civil

Forfeiture If the landlord wishes to consider whether or not to forfeit the breach, they will need to consider the following before serving a s 146 notice: • whether the breach has given rise to an express right to re-enter • whether the breach has been waived; unlawful subletting is a once and for all breach (ie the right to forfeit will be waived by the landlord in respect of that each time the landlord recognises the ongoing landlord and tenant relationship after becoming aware of the breach). However, that clearly is not an issue in this case as a new breach will be arising each time there is a new short term sublet (although once the landlord decides to take action in respect of the latest breach, they will need to ensure they take appropriate steps so as not to waive the right to forfeit such as implementing a rent stop etc—see the above section

Actions available following strike out There are a number of options available in the event that a claimant’s claim is struck out. In particular, they may be able to: • apply to set aside the strike out order, see Practice Note: Strike out and summary judgment applications—how to respond, in particular the section ‘Strike out and summary judgment applications—how to respond—Setting aside a summary judgment or a strike out order’ • apply for relief from sanction, see Practice Note: Relief from sanctions—the courts’ approach • seek to bring new/second proceedings, see: Bringing new proceedings after summary judgment or strike out—checklist [Archived] and Practice

Breach of tenancy agreement The terms of the tenancy agreement will need to be considered to ascertain which clause(s) the tenant may be in breach of by obstructing the fire escape in the common parts—for example, the tenant may have covenanted: • not to do or permit to be done on the property any act or thing which may be or become a nuisance, damage, annoyance or inconvenience to the landlord or the owners or occupiers of any neighbouring land • not to contravene the terms of any insurance of the property or do anything which would increase the ordinary premium—the landlord’s buildings insurance policy may require that the landlord provide unimpeded exits from the property • to comply with all legislation applicable to the use or occupation of the property—in that regard, a landlord may well be under a statutory obligation to providing safe exit from the property, which the tenant may be putting the landlord in breach

This Q&A assumes that the third national lockdown that applies from 6 January 2021, applies. For further information, see: • The Cabinet Office guidance: National lockdown: Stay at Home • Practice Note: Coronavirus (COVID-19)—national lockdown restrictions 6 January to 28 March 2021 [Archived] There are a number of issues for the employer to consider when deciding how to deal with this situation, including: • what level of national or local restriction applies • the nature of the workplace, and whether any restrictions on opening apply • the nature of the employee’s work, including whether there is scope for the employee to work from home or for alternative arrangements to be made • the nature of the employee’s concerns, including whether the employer has met its health and safety duties • the employee’s circumstances, including: ◦ whether they are disabled and therefore entitled to the protection afforded by the Equality Act 2010 (EqA 2010) ◦ whether

Where, due to a miscalculation, a beneficiary has been overpaid and the executors need money in order to pay liabilities of the estate, the executors or creditors may have two remedies. The first is a personal claim against the person or persons overpaid to compel them to refund the overpayment. For further information, see Practice Note: Unjust enrichment—elements of the claim. The second is a proprietary remedy, including following or tracing, in respect of which, see Practice Note: Proprietary remedies (including following and tracing). The personal claim is a restitutionary action based on the fact that the beneficiary has been unjustly enriched, ie has by mistake received more than they were entitled to. Tracing is a proprietary right, but is not at all straightforward as the executors will have to show that there is some asset which represents the cash overpaid. The leading case remains Re Diplock. This was a case

Section 389 of the Companies Act 2006 (CA 2006) Section 389 the Companies Act 2006 (CA 2006) explicitly provides that where a company fails to comply with the requirement to keep accounting records in accordance with CA 2006, s 388(1)–(3), a criminal offence is committed by every officer of the company who is in default. As such, every office of the company can be prosecuted by the regulator in the criminal courts. An officer of a company commits an offence if they: • fail to take all reasonable steps for securing compliance by the company, with the requirement that the records are preserved for the prescribed period, or • intentionally cause any default by the company It is a defence for an officer to prove that they acted honestly and that in the circumstances the business is carried out, the failure to keep accounting records was

Employees with sufficient length of service and who otherwise meet the qualifying criteria have statutory protection from unfair dismissal. To avoid a finding of unfair dismissal, it will generally be for the employer to show for the purposes of section 98(1) of the Employment Rights Act 1996 (ERA 1996): • what the reason (or, if there was more than one, the principal reason) was for dismissing the employee, and • that it was a potentially fair reason If the employer is unable to satisfy the tribunal that the reason for dismissal was potentially fair, the dismissal will be unfair. If the employer does establish a potentially fair reason for dismissal, the tribunal will, under ERA 1996, s 98(4), consider whether the employer acted reasonably or unreasonably in treating that reason as sufficient to justify dismissal, having regard to all of the circumstances of the

When a settlement has been reached following a mediation, it is important to make sure that the settlement is set out in writing. Breach of settlement agreement where litigation has been stayed If settlement is reached following a mediation but litigation is already under way, the action should have been stayed while the terms of the settlement agreement are complied with. This is usually achieved by using a Tomlin Order/Consent Order, which expressly agrees a stay of proceedings and includes a term stating that the parties do not need to commence fresh proceedings in order to enforce the terms of the settlement agreement. If a stay is in place following such an order, the