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This Q&A considers what duties former directors owe to a companies of which they were directors. It does not consider any contractual duties former directors may continue to owe to companies of which they were directors. Produced in partnership with Sadiq Tajbhai, Lewis Silkin LLP. The Companies Act 2006 (CA 2006) provides that certain parts of the duty to avoid conflicts of interest (CA 2006, s 175) and the duty not to accept benefits from third parties (CA 2006, s 176) continue to apply to a former director of a company. Common law also provides that the duty of confidence continues to apply to a former director of a company. A
Q&As
The basis of any duty Where a local authority is required to give its consent to an assignment (as is usually the case), the authority may be considered to be acting irrationally, and therefore in breach of public law principle, if it gives its consent in circumstances where it knows or suspects that the tenant who wishes to assign the tenancy lacks capacity. Since an assignment involving a person who lacks capacity will be voidable, it is probably undesirable for the local authority to give their consent to such an assignment. Where a local authority is unable to say for certain that the individual lacks capacity but suspects that they might, the local authority should consider whether a capacity assessment is needed to help decide the issue. Where a local authority has reason to suspect that an individual may lack capacity to assign their tenancy, it is
Q&As
What is the effect of a care order? The Children Act 1989 (ChA 1989) created a single statutory route for taking children into care through a care order or providing for the safeguarding of children at home through a supervision order, requiring the statutory threshold to be satisfied. Following care proceedings, when the court makes a care order, the effect is that parental responsibility is shared between the local authority (LA) and parents, or any other holder of parental responsibility prior to the care order being made. By virtue of the care order being in force, the child will become a looked-after child and associated LA responsibilities will apply. For further guidance, see Practice Note: Care orders and supervision orders. A care order ends when the child reaches 18 or if brought to an end in another way. A child arrangements order (CAO) naming a person as one with whom the child
Q&As
Every case involving these issues will be dependent on the specific facts of the matter. Schools will need to take advice each time, from their local support and possibly specific legal advice too. Background The governing bodies of maintained schools have a duty from section 175 of the Education Act 2002 that they shall make arrangements for ensuring that their functions relating to conduct of the school are exercised with view to safeguarding and promoting welfare of pupils at school. Academy schools have similar requirements from Regulation 3 of the Education (Independent School Standards) Regulations 2014, SI 2014/3283. Teachers at maintained schools, and those at academies where their contract incorporates it, have similar duties under the annual school teachers’ pay and conditions document. Schools also have a common law duty of care
Q&As
Solicitors owe various duties to their clients, both pursuant to the SRA Code of Conduct for Solicitors, RELs, RFLs and RSLs (the Code of Conduct for Solicitors) and the SRA Code of Conduct for Firms, but also contractually, based upon the terms of their retainer. Obligations under the Code of Conduct for Solicitors include not abusing their position by taking unfair advantage of clients or others, and not misleading or attempting to mislead clients, the court or others, either by their own acts or omissions or allowing or being complicit in the acts or omission of others (see paras 1.2 and 1.4 respectively). By para 2.1 of the Code of Conduct for Solicitors a solicitor must not misuse or tamper with
Q&As
Duties of an environmental health officer The housing health and safety rating system (HHSRS) was introduced by the Housing Act 2004 (HA 2004). It provides a framework enabling local authorities to take action in respect of problems with housing accommodation. HA 2004, s 2 imposes a duty on local authorities to keep housing conditions in their area under review with a view to identifying any action which may be needed under HA 2004. In compliance with that duty, the local authority must comply with any directions given by the Secretary of State (or, in Wales, the National Assembly for Wales) and must keep such records as required by the Secretary of State (or National Assembly for Wales): HA 2004, s 3(3). Where a local authority becomes aware of a potential hazard in particular premises, HA 2004, s 4 requires the authority to carry out an inspection to determine whether a hazard in fact
Q&As
This Q&A assumes that the offer is a valid Part 36 offer as to form. It should be noted that the overriding objective of CPR suggests that, where parties treat an offer as a Part 36 offer, although technically the offer does not fall within the ambit of Part 36, the court should treat the offer as a Part 36 offer when deciding costs issues, as per Lord Neuberger of Abbotsbury MR in Howell v Lees-Millais at para 27. Time of Part 36 A Part 36 offer can be made at any time, including before the commencement of proceedings (CPR 36.7(1)). When Part 36 offers are made before proceedings, the parties may yet have all the relevant information regarding the claim. For further information, see Practice Note: Who can make a Part 36 offer and when? A Part 36 offer made and accepted before proceedings commence
Q&As
Distinction between license and tenancy A licence is a personal right or permission given by the land owner (the licensor) for the licensee (the person being granted the right) to do something on the licensor’s land. The licensee is given permission to use the land for the authorised purpose and effectively prevents that act from being a trespass. Unlike a lease, a licence does not create an estate in land. A lease gives tenants a range of statutory protections which include various forms of 'security of tenure', compensation for improvements and protection from eviction and the regulation of costs such as service charges. In contrast licensees will generally not enjoy those protections afforded to tenant. However, where there is any doubt about its legal effect the court will lean towards finding that an agreement is a lease rather than a licence so that the occupier has statutory rights and protections.
Q&As
The starting point is that the contract will be enforced in accordance with the version signed by the parties, ie with the errors still contained within it. However, the precise effect of the errata will vary on a clause-by-clause basis. If the error in the original version leads to an ambiguity or inconsistency then, pursuant to clause 1.5, the Engineer (or, in the case of the Silver Book, the Employer) can issue a clarification or instruction to address the ambiguity or inconsistency on the basis of the errata. In the alternative, depending on the nature of the error which is corrected by the errata, a claim could be made for rectification by construction. The locus classicus for the principle of rectification by construction can be found in East v Pantiles and, in particular, the judgment of Lord Justice Brightman where he said as follows: ‘It is clear on the authorities that a mistake in a written instrument can,
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Where a party to a contract which has been guaranteed is being replaced by another party, and the party being replaced is the beneficiary of the guarantee, the question of whether the new party would benefit from the guarantee will largely depend on: • the wording of the guarantee • how the contract which has been guaranteed is being transferred from one party to another; and • any additional changes to the contract which might be connected with the transfer to the new party In finance transactions, any
Q&As
Section 13 of the Mental Capacity Act 2005 (MCA 2005) outlines the events that terminate the appointment of an attorney under a lasting power of attorney (LPA), including the dissolution or annulment of a marriage or civil partnership between the donor and the attorney. The termination of the appointment will also revoke the power, unless the donor appointed
Q&As
We cannot answer your specific question as it would require us to give advice which we cannot do. However, you may find the following information useful in your further research. Section 16 of the Licensing Act 2003 (LA 2003) specifies a restricted list of persons who may apply for a premises licence. The application is made to the relevant 'licensing authority' (usually the local authority for the area in which the premises are situated) in writing or by way of relevant electronic means. You must include the following with the application: • operating schedule as defined by the applicant stating the licensable activities they intend to carry on which can include one or more of the following: sale/supply of alcohol, provision of entertainment and/or provision of late night refreshment; the proposed hours of opening including the hours that the licence will be in force, whether alcohol