Royds

Helping a charity understand TUPE (Transfer of Undertakings) for their local authority contracts by Gemma Ospedale, Employment

2011-08-05T13:17:00.004+01:00

Certitude is a charity based in Balham which runs mental health and learning disabilities social care services.

I was asked by their senior staff, directors and HR personnel at the charity to help them understand more about TUPE* and related employment law. They tender for a lot of work with local authorities and they needed a comprehensive overview of how TUPE operates, together with practical advice and guidance on how to deal with new staff coming in from local authority services and other social care organisations.

Naturally, there are also concerns about budget constraints and the necessary restructuring which often has to happen as a result of these tendering processes where staff are transferred through TUPE. It is increasingly the case that when they tender for a piece of work (and this applies to all social care organisations) they have to run the service on a reduced budget from that which was given to the previous service provider. Therefore they have to consider how best to run the service and whether they need to restructure to provide the services differently.

If staff come over under TUPE the new employers are restricted in what they can and cannot do because of the law. What they wanted was practical guidance on how they can undertake restructuring and change terms and conditions, lawfully under TUPE.

I designed and delivered an interactive seminar for them – conveying the law but in the context of their situation and providing lots of practical advice. I took them through the latest case law on economic, technical and organisational reasons entailing changes in workforce, which can be a defence to dismissals or changes to terms and conditions which happen in connection with a transfer. I also guided them through how to identify whether staff are "assigned" to the service transferring.

We had an interesting and lively debate throughout the seminar. My talk used slides to help them assimilate all the information, examples and advice and welcomed questions throughout. At the end of each session, morning and afternoon, there was a case study with several questions based on the topics we covered during that session. Again, this engendered a lot of interesting comments and discussions on the solutions.

One of the comments which came at the end from their HR director was that it would be a useful talk for social care organisations generally because they are all involved in tendering with local authorities. If any other social care organisations would be interested in a similar event, please let me know – email gdo@royds.com.

* What is TUPE? The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) protects employees' terms and conditions of employment when a business is transferred from one owner to another, or the provision of a service changes provider, either to another organisation or back in house to the original contractor. Employees of the previous owner when the business changes hands automatically become employees of the new employer on the same terms and conditions. It's as if their employment contracts had originally been made with the new employer. Their continuity of service and any other rights are all preserved. Both old and new employers are required to inform and consult employees affected directly or indirectly by the transfer (Source: ACAS)

‘Royds solicitors keep fit and have fun with five-a-side football in Green Park’ by Fiona Aitken

2011-07-28T17:43:00.000+01:00

In making use of London’s plentiful parks and long summer evenings Carter Lane’s sporting elite, disguised as Lawyers of Royds LLP, headed out last night to Green Park for a bit of friendly five aside football.

The dribbling skills honed in boyhood clearly came in handy for the male half of the participants although arguably Alex’s Year 2 ballet lessons gave her high kicks a kind of grace not even Roberto Rivelino could surpass.

The pros Paul and Stephen shrewdly can not only actually play football but carried out a series of tactical calls which meant they both seemed to know what the other was doing – sneaky.

Frank’s initial desire to keep order and play by some rules was soon filed for another day and while he had concerns about having not played since the days of a leather lace up ball he did an outstanding job playing uphill much of the time thanks to our pitch which sat at approximately 5 %.

Playing in goal, Cheryl received man of the match (no PC gender neutrality here) although she has some work to do before she pulls off a Rene Higuita Scorpion save – that said I’d like to see him play like that in high heels.

While on the subject of the team’s wardrobe (this is a female author after all) it was good to see Chris playing in his suit (trouble when he gets home with grass stains on that one…) and he was even game enough to play barefoot.

Mark quietly put away a series of goals beaten only by the youth of the pack Tim, who scored so many goals we lost count. Lucy, still carrying injuries from the Extreme 5 a few weeks ago, deftly ducked and dived, dodged and weaved, sometimes even with the football at her feet. Helen’s enthusiasm and desire to extend the length of the pitch was soon quelled after one sprint up the far side and Fiona did nothing but make a lot of noise, kick Paul in the shins and caused a passing two year old, who simply wanted to join in, cry. Nice.

On reflection the rules were minimalist to say the least. Having carried out some research we may want to lay down some guiding principles for the next match. It seems the Football Association considers disciplinary action is required:

If a player commits any of the following offences in a manner considered by
the referee to be careless, reckless or using excessive force:

• attempts to kick or trip an opponent.
• jumps at, pushes, holds or charges an opponent (even with the shoulder).
• strikes or attempts to strike an opponent.
• spits at an opponent.
• slides in an attempt to play the ball when it is being played or attempted to be
played by an opponent (sliding tackle).
• handles the ball deliberately, except for the goalkeeper in his penalty area.

While it should be made very clear there was absolutely no spitting nor Wayne Rooney style foul language, the same can not necessarily be said for the other noted infringements - and that was just the girls…

Thanks to everyone that made the effort to come and join in. All those that genuinely had work to do or went home to watch Coronation Street missed out. Till next time.

‘The UK Jewellery Awards 2011’ by Stephen Welfare

2011-07-26T16:28:00.000+01:00

The UK Jewellery Awards 2011 at the Grosvenor House Hotel on July 14th recognised and celebrated the industry’s finest talent.

The event was brought by Retail Jeweller Magazine and hosted by celebrity TV presenter and model, Lisa Snowdon. Royds’ clients and contacts were once again well represented amongst the finalists, but sadly no winners.

The finalists:

Platinum Bridal Collection of the year
Sarah Jordan

Supplier of the year
Gecko
IBB
The Dreyfuss Group

Jewellery Designer of the year
SHO Fine Jewellery

Jewellery Brand of the year
Chamilia Europe

The finalists and winners were chosen by a panel of 32 judges scrutinising entry packs and examples of jewellery, and in some categories following an interview and questioning process.

Congratulations to all our clients. We look forward to meeting with you at IJL in September.

‘Harrogate’s 50th Giftware Trade Show’ by Stephen Welfare

2011-07-20T13:42:00.003+01:00

The Harrogate Giftware Trade Show turned 50 years old this year so I headed north last weekend to join the 900 odd exhibitors braving a very wet Yorkshire summer. I have not been to Harrogate Home and Gift for many years so I was interested to see if things had changed. The layout was much as I remembered, with exhibiting space spread out across a number of locations in the town centre. The Majestic Hotel dominates the scene, with four marquee halls erected in the grounds, more marquees in and around the Cairn Hotel along with several halls in the Harrogate International Centre.

Royds’ clients were located variously at the different venues representing the diverse mixture of products being show cased, from premier design led gifts company East of India in the design point marquee, to ceramics company DRH Collection Limited, other giftware clients and our many jewellery clients in the International Centre. Plenty of exercise as ever for your roving IP lawyer, and more than the one soaking by the rain in the process!

Harrogate still has a local feel to it. It has nothing like the scale or sophistication of Spring Fair or IJL. Unfortunately the poor weather put the dampeners on the celebrated social scene; the PIMMS tent and many outside catering establishments were unused. Whilst the summer fun and gaiety was missing, business continued regardless.

Royds’ client Instant Gifts International commented that Sunday and Monday trading was up on the previous year, and across the show visitor traffic was brisk. Reflecting the continuing economic uncertainty in commerce, at present, requests for legal advice were as much if not more about recovery of debt than protecting intellectual property.

As with other trade shows Harrogate offered free seminars and retail surgeries including a talk by Mike Josypenko of BJ & GI on sourcing from China. Royds are pleased to provide advice and assistance to BJ & GI on international and intellectual property issues.

So not a lot of change then, and typical “up north” weather. Bring on IJL in the “beautiful south” in September!

Royds participates in the Extreme 5 Challenge to raise money for charity: ‘John Wayne and True Grit’ by Fiona Aitken

2011-07-13T10:10:00.001+01:00

After months of training (not really), blood (really), sweat (lots) and tears (just a few), two Royds teams completed the Extreme 5 Challenge on Sunday 10th July. The event comprised of a fundraising challenge followed by a relay race involving a 1.5km swim, a 10km kayak, a 40km cycle and a 10km run.

Having left London at silly o’clock on the Sunday morning, Mother Nature was kind and the teams arrived at Willen Lake in Milton Keynes to glorious sunshine. With the fundraising in the bag (more about that later) and four challenges ahead, everyone was quietly focused on their own discipline; presumably picturing the finish, the inevitable glory and trying really very hard to ignore the competition who all somehow seemed to be from the buff, Lycra clad, aerodynamic-cycle-helmet-wearing section of society. Even down to Union jack embossed kayaks (!). It was all just scare tactics surely?

At 9am sharp, swimmers Helen and Fiona tippy-toed into the goose poop infested waters doing their upmost to look glamorous in tight fitting wetsuits and bearing in mind the calls of “keep your mouth shut girls” being the advice from safety conscious HR on dry land (thanks Cheryl). A sharp blow of the horn induced a flurry of splashing from approximately 30 competitors and after receiving a couple of friendly competitive blows to the head each, both Helen and Fiona emerged from the water to tag the kayakers.

It soon became clear Lucy had been given the dodgy wheeled shopping trolley version of a kayak. Once she had finished impressing us all with her 360 spins (of which we note the Union jack embossed crew achieved none), she powered round 10kms – yes 10 kms - of lake. Hats go off to her for this massive effort and all were pleased to hear we were not penalised for returning the paddle with smatterings of blood. She is now known on Carter Lane as ‘Lucy True Grit Hollis’.

Next came 40kms of cycle power as Mark and Jack used every inch of their lawyering logic to avoid being outsmarted by the local youths who had moved the signs meaning the cycle course was slightly different for each competitor. In addition, nimble fingered Mark clearly has been taking notes from McLaren as he fixed a puncture in just six minutes and continued in the race as if nothing had happened. Jack on the other hand got a puncture in the first 20 yards (give me some poetic licence here) yet continued for 2 hours and 16 minutes on a gravel track to complete his section of the race, with no water, long trousers and a completely flat tyre! John Wayne is a big girls blouse compared to Jack; however they now both have a similar gait.

Finally the run. Naomi and Cheryl were up against it due to aforementioned equipment failures – what is it they say about a workman and his tools? But they both flew round, Cheryl heeding her previous advice about keeping her mouth shut and Naomi wishing she had as she swallowed a swarm of flies.

As the sun set on what turned out to be an eventful day, the teams enjoyed a cool beer, a BBQ and that warm fuzzy feeling of achieving something worthy of a mention around the water cooler at work next week.

On a sincere note, however, the teams would like to thank all those who supported the cause as having raised over £400 in aid of Homes in Zimbabwe and Ndoro. 8 members of the Royds fraternity completed all five challenges in a style of their own.

'Employment Law Seminar and Workshop' by Gemma Ospedale, 6th July 2011

2011-07-06T09:55:00.001+01:00

Last week saw a gathering of current and potential future Royds clients, as speakers Gemma Ospedale, Helen Murphie and Hannah May conducted an Employment Law Update Seminar and Workshop.

As many employers are well aware employment legislation appears to be in a continual state of flux. Keeping fully abreast of developments often proves to be time consuming and not always that interesting. Even for the most diligent of employers, maintaining a firm grasp of employment law often fails to be a reality.

By focusing on six keys areas and preparing a workshop and questions and answers session the Royds speakers broke through some of the mist that shrouds these developments. Attendees for example now have the confidence, even without ‘A’ level maths, to calculate Additional paternity leave entitlements. Further feedback showed the speakers even managed to be entertaining - although a ‘sugar high’ following afternoon tea and the promise of a glass or two of wine post seminar may have contributed to that!

The topics covered were:

1. Agency Workers Regulations
2. Additional Paternity Leave and Pay
3. Holiday Sickness
4. Equality Act 2010
5. Compulsory Retirement
6. Right to Legal Representation

By no means will this seminar be a one off event, as areas of future interest might include the Bribery Act, flexible working hours and TUPE.

Should other employers feel they or their management teams might like to attend any future seminar please contact Gemma Ospedale at gdo@royds.com.

Family wealth under continued pressure by Deanna Hurst, 4th July 2011

2011-07-05T16:36:00.001+01:00

An article entitled “Families just £1 richer than in 2004” in today’s City AM newspaper caught my eye. It was reporting on a Westminster Think Tank presentation today that shows the average household’s weekly income measured £682 in 2004-2005 and just £683 in 2009-10 in numbers adjusted for inflation. Sir Mervyn King, Governor of the Bank of England, suggested in the article that we are presently experiencing the biggest income squeeze on families since the 1920s.

With inflation running at 4.5% in the UK (compared to Europe at 3.2%) – whilst the target is 2% - things are hardly likely to get better in the short term.

And on the assets front things are barely much better – despite interest rates being held at their lowest level (0.5%) for some time one of the main barometers of UK wealth – house prices – remains stubbornly low. Recent reports show mortgage approvals are running at half of pre-crisis levels and unsold homes are piling up. Meanwhile, property values fell 4.2% in the three months to May 2011 compared to the same period in 2010.

This means that increasingly families are looking at short term financial survival over their long term family wealth and prosperity. Worrying times indeed.

Need new business premises? - What are your options? Mark Newbold (Commercial Property)

2011-06-15T14:06:00.003+01:00

Most businesses rent premises from a landlord. You can do this either under a licence or a lease.

Licence - This is usually a short-term arrangement. Your landlord can enter the premises at will, and require you to move out at short notice.

Lease - A lease is longer-term arrangement. Aside from access for repairs, ordinarily you will have exclusive use of the premises, and you have the right to remain for the duration of the lease.

What will I have to pay?
Once you are in occupation and have paid any upfront costs such as agent’s and solicitor’s fees, you will usually have to pay the following:

Rent - This can be payable monthly or quarterly, and the amount will be set out in your lease. You should also be aware that many leases contain provisions for the rent to be reviewed at certain times, and this may mean that the rent increases.

Service charges - Usually, the landlord is responsible for maintaining the building and insuring it, and will pass a share of this cost on to you by way of service charges. Often, the charge is estimated, and you will have to pay in advance. At the end of the year, if the actual cost is more, you may have to top up the payment; if it is less, the difference between the two is usually carried over to reduce your payment for the following year. You should make sure that you see evidence of previous year’s charges.

I need to move. What can I do?
When you enter into a lease, you are agreeing to occupy and pay rent for a fixed period. Leases can contain options for you leave early, rent the premises to someone else or pass the lease on to another tenant.

Leaving early - Some leases contain what is known as a break clause allowing the tenant to give notice at certain times. If you wish to take advantage of such a clause, you must be extremely careful. You must give notice at exactly the right time, and you must make sure that all rent and other charges owing are paid. If you do not, the break clause will fail, and you will have to stay and continue to pay rent and service charges.

Renting to someone else - This is known as sub-letting, and although someone else will be paying rent, you remain responsible to the landlord for all sums owing; if your sub-tenant does not pay, you will have to. You must get the landlord’s approval in writing to sub-let, and often, the landlord can refuse if they do not think the new tenant is suitable.

Passing the lease on - This is known as assigning the lease, and although the lease will be transferred into someone else’s name, the landlord will usually require you to guarantee the rent and other charges. As before, you will have to get approval in writing from the landlord.

With all of the above options, the landlord can usually require you to pay his professional fees; these normally include surveyor’s and solicitor’s fees.

My lease is nearly up. Can I stay on?
Under the Landlord and Tenant Act 1954, tenants have the right to a new lease except under certain circumstances, for instance the landlord may be intending to redevelop the site.

You do need to be careful, however, because it is possible to sign away your rights when you enter the lease. This is known as ‘contracting out of the Act’, and you will be giving up any right to remain if you do so.

My lease is up and I am leaving. Are there any additional costs?
This is another area where you need to be extremely careful. Leases can contain provisions that will require you to put the premises back into the condition they were in when you occupied. This can mean removing anything you have done and repairing and redecorating the premises, and can be a substantial amount.

The term used for this is dilapidations, and if the lease has such provisions, you should make sure that there is evidence of the condition of the premises attached to the lease before you sign it.

There is a problem with the building. What can I do?
In return for you paying the rent and service charges, your landlord is agreeing to look after the building. This is, however, an area where tenants should be careful, as most leases specifically provide that tenants cannot withhold rent.

What should I do next?
Once you have identified suitable premises, you should seek legal advice from an experienced property solicitor. As you can see from the very short summaries above, there are costs and liabilities that may not be obvious, and these can trap the unwary. You should not sign anything without taking advice, as you could end up having to pay far more than you thought, both during the term of the lease, and when it ends. For a confidential chat, without obligation, please give me a call.

This article appears in Royds "London Business Adviser" newsletter which you can access at http://www.royds.com/pdf/TheLondonBusinessAdviser_Spring_2011.pdf

Insolvency Curry Club by David Bowman, Dispute Resolution Department

2011-04-08T15:08:00.001+01:00

A further gathering of curry-loving junior insolvency professionals and Royds lawyers took place on 31st March 2011 at the Bengal Tiger – which is just a few yards from the Royds offices in Carter Lane, near St Paul’s. The revellers included members of the Royds litigation and property teams along with guests from leading accountants and insolvency practitioner firms. It was another great social event and our thanks to all those who came along.

We have great ambitions for the Curry Club (particularly as there are so many great places to eat in the City) and hope that it will become a quarterly event for juniors working in the insolvency, accountancy and legal sectors in the South East to meet socially. An obsessive love of Eastern cuisine and Cobra beer is not compulsory but is an advantage!

Club membership is free but on an invitation basis but anyone working in the insolvency sector is encouraged to express an interest to come along to the next session due to take place in June/July. Anyone who is interested should contact David Bowman on dab@royds.com. And please don’t worry if you can’t persuade a colleague to come along, we’ll make sure you have several people to chat to.

Data Protection – Will you be fine or fined? By John North, Commercial Department

2011-04-07T17:04:00.000+01:00

As there have been numerous press reports about private and public sector organisations being fined for problems with Data Protection, we were recently asked by a client to present a short, practical workshop for its senior managers on the Data Protection Act. Our talk covered the following:

• Overview of the Data Protection principles
• The new fines regime
• Possible issues for all businesses
• The Information Commissioner – powers and actions
• How to protect your business

Amongst the case studies we used to illustrate the potential issues were: misdirected faxes and letters, loss of memory sticks and laptops, the lack of encryption on sensitive data where laptops had been stolen, furniture sold containing files and where papers were found at a recycling centre. We considered both the policy and systems that need to be in place as well as the responsibilities and actions of all employees.

If you would like us to present a similar short session at your business, please get in touch.

Olympic Volunteering by Christopher Hall

2011-04-04T09:11:00.011+01:00

HRH Duke of Edinburgh is shown on Christopher Hall's boat Casamajor at the 150th Anniversary celebrations of London Rowing Club on the Thames in June 2006.

As Olympic fever approaches, James Millar Craig and I are waiting with interest to see if we have made it to the interview stage of the volunteer programme. James has highlighted his efficient administrative and car parking skills in the hope of making it to the next phase, while I am sticking closer to my watery habitat by volunteering for work on the rowing lake.

Whilst it is easy to denigrate such a huge amount of investment for a four week sporting event but we can see from the huge anticipation already building up for the one day event at the end of April, how commercially important these games will be for Great Britain. The early completion of the Olympic Stadium has highlighted one of Britain’s main strengths, which is recognised world wide, that we cannot be beaten for organisation and attention to detail.

What is also clear is that in the build up to the games this year, and during the main event the focus of the world will be on London and Great Britain, and more importantly all competing countries will bring large delegations of senior politicians and businessmen who will be looking for opportunities of investment in the United Kingdom.

As part of this process I have also volunteered for the test event at the rowing lake which is the Junior World Championships, which dovetails well with my main hobby of coaching young rowers. I am also involved in the Regatta for the Disabled on 3 September 2011, which allows disabled people to experience rowing for themselves.

Royds LLP, have since its bid stage been an active supporter of the Olympics and Paralympics coming to London. We welcome all queries from investors, participants and spectators for the London 2012 Games.

For further information please contact Christopher Hall on cdh@royds.com or
James Millar Craig on jmc@royds.com or telephone 020 7583 2222

The Bribery Act, corporate hospitality and Olympic tickets by Emma Boulter, Corporate Department

2011-04-01T16:03:00.004+01:00

As tickets for the London 2012 Olympics went on sale two weeks ago the general public now has less than a few weeks to place bids for a total of 6.6 million seats. In light of the extensive press coverage that the newly implemented Bribery Act has received, many businesses will no doubt be wondering if they are allowed to place bids for corporate hospitality purposes or if doing so will leave them enjoying the games from behind bars.

The Bribery Act applies to all everyday business trading activities however large or small operating within the UK, whether the organisations are incorporated in the UK or not and whether in the public or private sector. Over the course of and in the run up to the games the Serious Fraud Office (SFO) will be monitoring business activities for suspicious transactions but Richard Alderman, director of the SFO, has said, "Sensible and proportionate expenditure on hospitality will remain perfectly lawful under the Bribery Act."

Corporate hospitality will inevitably create big business opportunities throughout the games, but any organisation intending to use the Olympics as an opportunity for entertaining must ensure they have adequate procedures in place beforehand in order to avoid criminal liability. Things to be aware of when planning an event include ensuring there is a substantial business element with a legitimate goal, be transparent and document proposed events carefully, be aware of the value and the associated expenses of this sort of entertainment and ensure these are proportionate to the proposed business.

Implement good procedures, be aware of the restrictions and place your bids! The bidding closes at 11.59pm on 26 April 2011.

There are now 482 days until the games begin! Olympics begin on July 25, 2012.

All Change on Litigation Funding.....

2011-03-31T15:45:00.010+01:00

As you may have seen on the news this week the Lord Chancellor, Ken Clarke, has announced his intentions to implement the Jackson Report on litigation funding in a White Paper. These changes affect almost all aspects of contentious case funding and are therefore of interest to commercial and individual clients who are may become involved in disputes before the Courts in near future.

The highlights of the White Paper are as follows:-

•Abolition of the general recoverability of CFA “No Win No Fee” success fees from a losing party – lawyer’s success fees of up to 100% of the legal costs of an action brought under a CFA will in future be paid by the client and not an opponent. This will have a considerable impact on how legal cases are funded.

•Abolition of the general recoverability of “After the Event” legal expenses insurance premiums – all premiums will be paid by the client, except the costs of an expert’s report in clinical negligence cases which will remain recoverable.

•An increase across the board of 10% to non pecuniary damages in tort cases e.g. pain, suffering and loss of amenity in negligence cases.

•Damaged Based Agreements (DBAs) aka Contingency Fees, where lawyer’s fees are funded from a percentage of the damages awarded by the court, shall be lawful. It is not intended by Government that there be a requirement for claimants to take independent legal advice, as there is with say a compromise agreement.

•Personal Injury/Clinical Negligence: There will be a maximum cap of 25% on the amount of damages taken as a success fee in personal injury cases.

•Personal Injury/Clinical Negligence: “Qualified One Way Costs Shifting” to be brought in. In PI/CN cases a claimant will not have to pay defendant’s costs should the claim fail, but conversely the defendant would have to pay the claimant’s costs if they fail. This would be subject to conditions such as the parties’ conduct and their financial means.

•Part 36 offers: The rule in Carver v BAA (Part 36 offers and the definition of “beating an offer”) shall be abolished – if an offer is beaten by any amount the court must (unless it considers it unjust to do so) penalise the offeree.

•Part 36 offers: An additional sanction of 10% of the value of successful claim shall be payable by defendants who do not accept a claimant’s reasonable offer that they then fail to beat at trial.

•A change to costs assessments so that only reasonable and proportionate costs may be recovered from a losing party.

•The prescribed litigant in person costs rate shall be increased and shall continue to increase in line with inflation.

The changes which require primary legislation (e.g. CFAs and DBAs) will be enacted when Parliamentary time permits. The other changes that rely on secondary legislation and changes to the Civil Procedure Rules (e.g. changes to costs recoverability/shifting and Part 36 offers) will follow more swiftly. These changes will be discussed in more detail in the next Litigation Bulletin to clients.

Clients should seriously consider whether they need to take court action in a dispute before these major changes to the recoverability of costs from opponents come into force. For further information please contact David Bowman on dab@royds.com or on 020 7583 2222.

For more information please follow this link:
http://www.justice.gov.uk/consultations/docs/jackson-report-government-response.pdf

My Blog from Basel by Stephen Welfare

2011-03-31T15:38:00.002+01:00

Another trade show, another City but not the same thing. On Wednesday, 30th March I attended the Watch and Jewellery Show, BaselWorld, Switzerland. As a first time visitor I was impressed at the size of the stands compared to what I am used to seeing at Spring Fair and IJL. Two storey constructions were the norm amongst the watch companies with Rolex the pick of the bunch – marble walls and staircases no less!

It was good to see Royds’ clients Dreyfuss Group (Rotary), IBB (Hoxton London) and Rodney Rayner, amongst others, putting on impressive displays. Spread over several halls in separate buildings there was, once again, plenty of walking for your hard working IP Lawyer.

As I was only there for the day it was impossible to cover the whole Show and difficult to determine quite what was on trend this year. What I observed was plenty of bling, bright colours and perhaps surprisingly in these austere times a liberal use of diamonds, other gemstones and crystal. Not so much keep calm and carry on, but perhaps more a case of to hell with it!

Exhibitors at BaselWorld agree in the Show terms and conditions to the jurisdiction of BaselWorld panel regarding any intellectual property disputes that arise at the Show. This is very much instant “justice” with arguably a home bias. The complainant has the strong advantage of being able to prepare its case, lodge papers with the panel and invoke the arbitration clause in the contract. Administrators then descend upon the defender stand who is summarily brought before the panel and required to prove its innocence. There is no advance disclosure or witness evidence so the party having its documents has the clear advantage. It was very interesting talking to Royds’ Swiss colleague, Christoph Kunzi, Infosuisse, about his experiences of this procedure. My advice to any UK businesses exhibiting at BaselWorld is to take design sketches and any registrations with you, even if only in electronic form on a memory stick.

Best regards to all Royds’ clients who exhibited or visited BaselWorld and apologies to the many of you that I was unable to meet up with. Here is to prosperous trading through to the next major Trade Show IJL at Earls Court.

Budget

2011-03-28T12:49:00.000+01:00

The Budget was held on 23 March 2011. I have the following key points:-

• There was an emphasis on encouraging enterprise investment in the UK by increasing the lifetime Entrepreneurs’ Relief for capital gains tax to £10,000,000 so that any gains up to the amount of £10,000,000 are charged at 10% instead of the standard rate of 18% (or the higher rate of 28% for higher rate taxpayers).

• The charge for non-domiciled people resident in the UK has been increased from £30,000 to £50,000 if that person has been in the UK for twelve years, but there will be no tax charge for omitting income or gains into the UK in order to invest in a UK business. There was a promise not to make further changes to the rules for non-domiciles during this parliament.

• Tax relief on Enterprise Investment Schemes is also increased to 30% from 20%.

• There is now 10% relief on Inheritance Tax so this will be reduced from 40% to 36% if you leave 10% of your estate to charity.

• Consultation will take place on the provisions for making gifts of pre-eminent heritage assets to the state.

• Plans will be made to close down bonus schemes, SDLT avoidance, capital gains for companies and lifelong employee interest free loans.

For further information please contact Christopher Hall on cdh@royds.com or 020 7583 2222

Offshore Trusts by Christopher Hall

2011-03-07T14:34:00.000Z

The recent events across the Middle East have highlighted the importance of wealth preservation. Contrary to popular belief tax avoidance is not the prime reason for protecting your wealth in an offshore structure. Chris Hall’s experience in the Cayman Islands was dealing with a number of clients who had assets in potentially unstable countries. They often had an urgent need to protect their assets against a regime change, which could quickly result in their hard earned family wealth being nationalised.

The huge potential losses to British business interests following the recent events in Libya highlight these dangers only too clearly with a number of U.K. firms being left out of pocket. However, for the individual families on the ground the imminent danger of losing all their wealth is much more real. Protecting your assets in a suitable offshore structure in a stable regime is for individuals affected now more important than ever.

Chris Hall is able to advise on which jurisdiction is most suitable for individual families and how best to structure these assets. For example, if a family is based in the Middle East it can be very important to ensure that their wishes comply with Islamic rule. Chris Hall and his team are able to provide advice on Sharia compliant Wills and trusts.

For further information please contact Christopher Hall on cdh@royds.com or 020 7583 2222

Wine Tasting Evening 3rd March 2011

2011-03-07T14:30:00.001Z

The Private Client Department along with Sandro Forte of Forte Financial invited clients and guests to enjoy a Wine Tasting Evening last week at the Royds offices. Royds Corporate Partner and Cellarmaster of the Solicitor’s Wine Society, Duncan Holden, took the guests through the wine tasting, sharing his expertise in the subject.

Wine from France, Spain and even Lebanon were tasted; some were enjoyed much more than others but we all took away some tips that will be used to impress others in the future. Our sensory evaluation and guess work were then put to the test with a quiz to match the wine with the description and price; a much harder task than first envisaged. Conversation was flowing along with the wine and I am sure new acquaintances were made by all.

The winners of the evening took home wine tasting books as prizes so they could maintain their newly found talent.

Thank you to all those that attended.

The future is bright – Employment quiz report by Fiona Aitken

2011-03-04T17:19:00.002Z

The Royds employment team, their co-workers, clients and guests did a great job of quashing the winter blues this week as 80+ enthusiastic contenders battled to be quiz champions.

Someone in the organising committee was one step ahead of the game as the event was held in a basement wine bar. Blackberries were therefore as much use as a wrist watch. However, once the wine got flowing the inner genius emerged – or possibly the writer was simply imagining things?

Thankfully, there was only one law related question so the attending barristers and solicitors avoided any undue embarrassment and not too many points were lost due to dodgy spelling – clearly some of us have developed a shocking reliance on spell check.

The ‘connections’ round was a clever twist on the usual series of questions as the last answer to the question in the round related to the answers of all previous questions. Teams could either be confident of their answers above or were thrown spectacularly off track.

So, thanks go out to all those who made Tuesday the great night that it was. From a Royds perspective it was excellent to see all those in person who all too often we deal with via internet and telephone.

We hope to see you all again at the next event but until then we leave with a thought… The winning team consisted of a disproportionate number of Royds trainees. Therefore, either the closely guarded questions were revealed prematurely to some or, as we forcefully contend, the future of the firm is in very good hands!

The Information Commissioner Gets Tough

2011-02-14T16:16:00.000Z

Information Commissioner gets tough with fines for Data Protection Breaches by John North and Emma Boulter

We have just prepared a short bulletin on this topic which has been sent to our corporate and not for profit clients. In November, the Information Commissioner’s Office issued its first fines for serious breaches of the Data Protection Act.

Both public sector organisations and private companies have been fined – in one case as much as £100,000 (although the maximum possible is £500,000). The breaches were for relatively ordinary (and possibly commonplace) operational and day-to-day issues such as misdirected faxes and unencrypted laptops. However, in both cases the information was highly sensitive.

The bulletin offers some practical advice on what to do to avoid breaches in your organisation and offers some guidance on testing your Data Protection compliance procedures.

Please let us know if you would like a copy of the bulletin.

Stephen Welfare reports from Spring Fair NEC

2011-02-09T14:27:00.001Z

I am back at Birmingham NEC once again for the International Spring Fair. I think this is my 17th year at the event and whilst I do now know my way around the halls of the NEC, I still seem to get lost driving around the Birmingham ring road?

On Sunday I resumed my advisory role on the stand of the British Jewellers Association for whom Royds operate the intellectual property protection service, ‘COPYWATCH’. It was a lively start to the show with plenty of enquiries to field on a range of issues. Jewellery has its own designated show within Spring Fair and this year extra effort appears to have been made by the event organisers and the exhibitors to create a vibrant and really rather exciting event.

At the heart of this is the Pandorra Catwalk Café, which together with catwalk shows in the fashion accessories hall have created a touch of chic this year. Still popular with buyers are charms and bead jewellery, with Chamilia and P Kennedy / Truth giving Pandorra good competition. On Monday the BJA Award 2011 went to Dark Horse (non precious) and to Burkmar (precious metal).

As well as being on site to provide advice Royds Solicitors are also able to provide representation at the event if any infringement of intellectual property rights occur. The number of incidents of infringement across the Spring Fair has been significantly down on previous years, which prompts the question has plagiarism been beaten?

The war on design theft is far from over, but greater IP awareness through initiatives such as PIPR® and effective action by COPYWATCH have undoubtedly contributed to the reductions noted.

On the social scene the invitation only party for The Jewellery Show at the Jam House, Birmingham was the place to be. The good, bad and beautiful of UK jewellery were seen having a jolly good time. Heaven knows how exhibitors and visitors, who have been on their feet all day hiking around the vast NEC, find the energy to go dancing? My thanks to John Stewart Jewellers, Mancini and Hockley Mint Limited for all their hospitality.

Back in the giftware halls business appeared to be good with confidence returning. Royds clients, Bomb Cosmetics, Richard Lang & Son, Instant Gifts International and East of India all reported that they had enjoyed a busy 2010, despite the recession. The Spring Fair is the UK’s biggest retail trade event with 300,000 new product launches from around 3,000 exhibitors spread over 15 halls. My feet are killing me. I will be pleased to return to my desk and chair!

Stephen Welfare
9 February 2011

Banter in the work place: camaraderie or harassment? by Fiona Aitken (employment department)

2011-01-31T08:35:00.002Z

Sky Sports this week ousted football commentators Andy Gray and Richard Keys after they made sexist comments about a female assistant referee. The naming and shaming of the pair has re-sparked the debate about when and how we ought to draw the line between banter in the workplace and unlawful discrimination.

In October 2010 the Equality Act was said to “signal a new era for discrimination law.” However, the question of whether it is better equipped do deal with situations such as those found in the Sky Sports studio – and let's face it many other working environments - is yet to be fully tested in the courts.

The difficulty lies in the many forms in which sexual harassment and discrimination can take. A comment or act found offensive by one may be perfectly innocuous to another. After all it usually depends on the circumstances in question and everyone has a right to decide for themselves what behavior they find acceptable or not. Legislation therefore cannot be overly prescriptive. On the other hand harassment in the workplace is not purely left to a judgment call.

Employers can be clear regarding a number of elements in the law and by putting into practice some basic policies they can make great strides towards protecting their employees and avoiding litigation.

Case law decided before the Equality Act 2010 came into force will still apply. Therefore, a single incident can be enough to constitute harassment (Reed v Steadman, 1999), and some conduct must be presumed to be unwanted unless proved otherwise. Further, the fact that the employee has tolerated conduct for years does not mean that it cannot be unwanted. (Munchkins Restaurant Ltd and another v Karmazyn and others, 2009).

Moonsar v Fiveways Express Transport Ltd (2005) demonstrates the danger of permitting a certain culture or environment in the workplace. In that case male colleagues downloaded pornographic images onto computer screens. Their actions were held to be discriminatory even though the Claimant was never shown the images and she had not made any complaint at the time. The Employment Appeals Tribunal found that this was treatment that would obviously undermine the Claimant’s dignity. It was therefore discriminatory.

From the alternative perspective the tribunal in Smith v Vodafone UK (2000) found a comment made by a male employee to a female co-worker who had a punnet of melon slices on her desk that she has “got some lovely melons there” was a corny joke. The tribunal held the remark was made innocently and did not affect the Claimant's dignity at work.

As these situations continue to occur there are those, such as Top Gear presenters Jeremy Clarkson and James May, that fear political correctness and employment legislation will have the effect of abolishing humour in the work place. While a line that continues to move is inevitably a difficult one to draw it seems Richard Keys said it all shortly after his resignation from Sky Sports: "Prehistoric banter isn't acceptable in the modern world. I accept that. We failed to change when the world has changed. It was wrong. I deserve to be battered."

Forecast changeable for retail property portfolios by Mark Newbold

2011-01-28T09:42:00.001Z

Retail Week reports on whether the decision by HMV to downsize its property portfolio by 60 stores signals a more widespread move by retailers to reduce their commitments to bricks and mortar.

Although some retailers are clearly feeling the pinch and consolidating, and some of the secondary shopping centres and smaller high streets are suffering higher vacancy rates, it is not all doom and gloom.

There is optimism in the market in some quarters with some retailers and landlords remaining optimistic about continued growth for traditional retail.

Retirement age to be abolished by Richard Woodman

2011-01-17T12:13:00.001Z

My employment colleagues – Gemma Ospedale and Helen Murphie – have been busy sending information out on the Government’s recent decision to abolish the Default Retirement Age of 65 from 1st October 2011.

Many of our clients have asked for help to review and revise their employment contracts and other human resources policies to ensure that they will not fall foul of the new restrictions and to navigate the transition arrangements for those reaching 65 before October.

If you would like a copy of the briefings or bulletins we have issued on this and related employment matters, please let me know rmw@royds.com

Our family and private client teams in Law Society's Probate Practitioner's Handbook

2011-01-07T12:16:00.002Z

Patrick Hart, family partner and head of the Family Wealth department, is quoted in the sixth edition of the Law Society's Probate Practitioner's Handbook.

The topics on which he is quoted are:

* The integration of our private client, family and residential conveyancing teams
* The firm's expertise with particular groups of clients such as large family estates, international finance and business people, sports people, celebrities, media personalities, entrepreneurs, those with special religious needs and the LGBT community.
* Our private client and commercial lawyers presenting seminars in the Middle East in conjunction with a global bank.
* Offshore experience in Cayman Islands, British Virgin Islands and the Bahamas

The London Economy Update by John North, Corporate Department

2010-12-21T10:29:00.001Z

The City of London Corporation has an excellent research team which produces regular information about the economic conditions in the City of London and the impact of the Financial Services industry.

Here are the headlines from the latest City Economy Digest – the full report is available from http://217.154.230.218/NR/rdonlyres/190E7CE6-F97B-4FAF-8E35-45FAEFA767E9/0/10CED4.pdf

City Headlines

• The economy has seen a fairly strong recovery from the recession so far, with growth in both the second and third quarters well above expectations. As a result of this improvement the Office for Budget Responsibility has raised its estimate of this year’s GDP growth rate to 1.8% from the 1.3% forecast it made in June.

• National income data released by the Office of National Statistics shows that the UK economy grew by a fairly robust 0.8% in the third quarter, with the strong boost from overseas trading activity offsetting the slowdown in domestic consumer spending and business investment.

• Although the economy overall may avoid a double dip, the housing market looks as though it is heading for one, with all the recent surveys pointing to a drop in house prices during 2011.

Budget Deficit

• In its comprehensive spending review, which was released last October, the government set out its plans to eliminate the “structural” budget deficit over the next four years by cutting public spending during the period by approximately £81bn.

• Whilst the government’s fiscal stance will stay restrictive well into the medium term, the Bank of England’s freedom to inject additional funds into the economy, by way of quantitative easing, will also remain limited because inflation is expected to stay above the target rate well into next year

• On competitiveness, the proportion of firms that believe the UK is less competitive as a financial centre has fallen once again to 68%, from a peak of 85% in this year’s March survey.

London Economy

• The City jobs market is continuing to recover from the downturn that followed the financial crisis that began in 2008. The latest employment survey conducted by Morgan McKinley, shows that the number of new jobs at City financial institutions rose by 5% in October, and this figure was 13% ahead of the position a year earlier.

• Fears that the City is losing out against other financial centres are being eased by news that foreign investors are moving back into the UK financial services sector. Foreign-owned businesses accounted for 9.1% of new authorisations by the Financial Services Authority in the first half of 2010, sharply higher than a year earlier.

An English Man in New York by John North, Corporate Department

2010-11-26T11:54:00.002Z

At the end of October I had a whirlwind couple of days in New York to attend the Interleges Executive Committee meeting. It’s 10 years since I was last in the Big Apple and I was struck by the fact that it seemed even busier than ever with so many people and an incredible amount of traffic.

From the work perspective, we had a successful Executive Committee meeting where we further developed our plans for the conference we are planning for Paris in May 2011 on the commercial aspects of environmental law – particularly issues relating to carbon trading. Our colleagues at Interleges firms in Paris and Sweden are leading lights in this field.

I attended a drinks reception at the New York firm of Anderson Kill & Olick, PC whose 42nd floor offices are in a building on the Avenue of Americas in the extension to the Rockefeller Center, the famous Art Deco complex in Midtown Manhattan. It was interesting to meet the partners there – especially as the firm is amongst the leaders in the area of insurance litigation. Then we had dinner with a few of the partners at famous Italian restaurant Remi – which was excellent.

Whilst in New York, I also had a brief meeting with Daniel Rayner of Rayner Rowe LLP – which is another New York Interleges member – which specializes in corporate law. David is dual qualified in United States and English law. Then the rest of my day was free! So I spent a couple of hours walking back to the hotel via The Metropolitan Museum of Arts – where I particularly admired the Egyptian artworks - and through Central Park.

In the evening a special treat – I went with lawyers from Interleges firms in Dublin and Zurich to Birdland, the jazz landmark club established in 1949 by Charlie "Yardbird" Parker.

The weather in New York was beautiful so it was a bit of a shock when I returned to the freezing conditions in London.

Royds Quiz Night by Deanna Hurst

2010-11-24T09:55:00.001Z

Great fun was had by some of Royds’ charity clients, our partners and other lawyers from various departments on the 4th November when we held a quiz evening and charity raffle at a local wine bar. Teams included the Royal Society of Musicians, Action for Children, Artists Studio, Clydesdale, West London Synagogue, and Ndoro Children’s Charity.

Our general knowledge was tested with six rounds of questions, two of the most interesting entitled “pirates” and “beer”, while the wine and conversation flowed between the rounds. The most exciting guest of the evening award went to David Mason from the Royal Society of Musicians who played on six number one singles with the Beatles.

One of the charities present took home over £200 raffle proceeds following a lucky draw, while some individual charity team members were fortunate enough to win some voucher treats as the main raffle prizes, and the winning quiz teams were suitably rewarded with champagne, fine wine and chocolates. This event followed on from a very successful quiz night for our retail clients, the atmosphere was buzzing and we will no doubt be holding more of the same …………

Investing in London commercial real estate by Alison Ayre

2010-11-18T10:46:00.002Z

In conjunction with BNP Paribas Real Estate our commercial property lawyers have produced a short guide for international investors on London real estate. Topics covered include:

- The favourable conditions in the London commercial real estate market at present
- An overview of the London real estate market
- An overview of the Central London office market
- How to manage your UK real estate transaction

Please let me know if you would like further information or email info@royds.com for a copy of the free guide.

Children's Hospices UK/Pennies Foundation

2010-11-15T15:54:00.001Z

Deanna Hurst attended a lunch time reception today where guests heard all about the work of Children’s Hospices UK, which is the national body supporting the work of the 45 individual children’s hospices around the UK. This charity is supported by the Pennies Foundation, also a registered charity which has just launched the Electronic Charity Box, a wonderful initiative whereby shoppers paying online or in-store are invited to round up their purchase to the nearest pound and those excess pennies are given to UK charities. We expect to see many retailers signing up and the capacity for fundraising is enormous.

Equality Act Update by Gemma Ospedale

2010-10-22T11:37:00.000+01:00

In advance of 1st October, when the remaining provisions of the Equality Act came into force, we prepared a briefing for our clients reminding them of the changes.

In essence, these revolve around the following issues:

The basic framework of protection against direct and indirect discrimination

Improving protection from discrimination for people who have or are associated with someone who has a “protected characteristic”

The new concept of “discrimination arising from disability”

Prohibition from issuing pre-employment health check questionnaires

Pay secrecy clauses becoming unenforceable

The Government is also considering ways to implement a new single public sector equality duty which brings together the existing gender, race and disability duties and extends them to cover age, sexual orientation, gender reassignment, pregnancy and maternity and religion or belief.

Three sets of regulations (The Equality Act 2010 (Disability) Regulations 2010) are also reviewed.

If you would like a copy of the full bulletin – which includes a commentary on some of the recent cases, please email me at gdw@royds.com

Government restricts amount of tax relief on pensions by Christopher Hall

2010-10-18T17:13:00.001+01:00

The government announced dramatic changes to pensions relief last Thursday, which will be introduced from April 2011. These include:

The annual limit that savers can put into their pensions tax free will be reduced from £225,000 to £50,000 from April 2011, a dramatic 80% decrease. If you want to put more than £50,000 into your pension you need consider taking action before April 2011.

Also the lifetime allowance on money that can be built up in a pension fund and receive tax relief has also fallen from £1.8m to £1.5m, but this will be from April 2012.

The effect will be negative on those that are high pension savers who will be affected by the reduced lifetime allowance. Similarly self- employed individuals are discriminated against as the model works on a regular income and regular pension contributions. Therefore it makes it difficult for those that wish to make a one-off payment to their pension fund.

Please contact Head of Private Client Christopher Hall on cdh@royds.com or 020 7583 2222 for further advice.

Directors and employees taking confidential information by Richard Woodman

2010-10-04T12:52:00.002+01:00

Foxtons is an organisation used to attracting headlines - not always favourable but usually demonstrating its success. However, its latest appearance across the media is firmly in the role of victim. Its unfortunate experience at the hands of a departing senior director is likely to ring the alarm bells with many businesses.

Timothy Hassell left his job as Operations Director after 12 years with the company in order to set up a rival agency. In the months before his departure he assiduously copied large sections of Foxtons' client database.
After starting his new business he emailed numerous of these clients and by the time Foxtons found out what was going on, he had begun signing them up.

Databases of this sort are extremely valuable - perhaps invaluable. Foxtons put the value of theirs at £3 million. Fortunately, there is a wide range of legal protection available and prompt action can ensure that long term damage is kept to the bare minimum. Indeed it seems likely that Foxtons'
legal response will ensure that the only one left regretting his actions will be Mr Hassell.

There are a number of simple measures that businesses can take to ensure that they have done whatever they can to protect their confidential information. Properly drawn contracts are a must as are simple security measures. Employees must be in no doubt as to the information which the business treats as confidential.

But there will always be someone who thinks it is a good idea to get a flying start in a new business or look good to a new employer by hitting the ground running - using the former employers' hard earned information for the purpose. If that happens the Foxtons case demonstrates that the Courts have a range of measures which can be deployed at short notice.

Royds Employment team regularly advises on the protection of confidential information and has frequently obtained injunctions and compensation for clients affected in this way. If you feel this is an issue that your business needs to know more about please contact me at rmw@royds.com

Matchday Report MONSOON 17 ROYDS LLP 16 by Gareth Williams

2010-09-23T14:33:00.005+01:00

There were a number of footballing upsets last night including defeats for Chelsea, Liverpool and Manchester City, but none can be more surprising than the defeat suffered by our gallant five-a-side team in deepest darkest Shepherds Bush.

The result did not make the morning papers due to the fact that the Match of the Day reporter is still trying to find his way back from the Sports Centre to White City Underground Station.

Under the inspired leadership of Bharat Nahar with his Churchillian team talk at the start of the match (which unfortunately was missed by many of the team who were still trying to find the location), how could we lose.

After sustained pressure led to early strikes for Monsoon, team Royds began to get into its stride and with deadly strikes which trickled over the line, our superiority was beginning to tell.

The turning point appeared to come when Patrick Hart came on as a substitute for the opposition.

Appropriate representations may be made to the FA bearing in mind the fact that the transfer window ended some weeks ago since the rejuvenated Monsoon side began to pressurise our goal resulting in their dominance for much of the remainder of the game.

All this despite crunching tackles on the female members of the opposition by our omnipresent Captain and some deft footwork from other members of the team.

Tensions were getting high towards the end, but were appropriately dealt with by Frank Davey from our Morden Office who refereed the game superbly, so much so that when everybody was completely shattered after the sixty minutes, Frank refused to blow the whistle and insisted that a further twelve minutes should be added on.

Rumours that we threw the game are being investigated by the SRA for match fixing allegations are simply not true, honest!

Bankruptcy and personal insolvency explained by Louise Engel, Corporate Department

2010-09-15T08:57:00.002+01:00

A person is insolvent if they have insufficient assets to pay their debts and financial liabilities.

What are the formal options for an insolvent individual?

1. Bankruptcy

• Bankruptcy is a process, started by a court order, to realise and distribute an insolvent individual’s assets among their creditors.
• An insolvent individual can petition the court for their own bankruptcy. Alternatively, a creditor can issue a bankruptcy petition against an insolvent individual.
• After an individual is made bankrupt, a trustee in bankruptcy (either the Official Receiver or an insolvency practitioner) is appointed. The trustee in bankruptcy takes control of all the insolvent individual’s assets. Their main duties are to sell these assets and share the money out among the creditors. The ability of a bankrupt individual to trade and take credit will be restricted during this period.
• An individual’s bankruptcy usually lasts for one year, although it may take the trustee in bankruptcy longer to sell the assets and share the money among the creditors.

2. Individual voluntary arrangement

• An individual voluntary arrangement (IVA) is an agreement between an insolvent individual and their creditors that either compromises their debts, or creates a framework to settle them.
• Any insolvent individual can propose an IVA to their creditors. If necessary, they can seek a court order to prevent their creditors taking action to recover the debts owed to them until they have voted on the IVA proposal.
• Creditors vote on the IVA proposal at a creditors’ meeting. Each creditor receives one vote for each pound the debtor owes to it. If more than 75% of the votes cast at the meeting approve the IVA, it will come into effect.
• When an IVA comes into effect, it binds ALL unsecured creditors of the insolvent individual to its terms. An IVA binds creditors that did not attend or vote at the creditor’s meeting and even creditors that voted against the proposal.
• A number of firms exist to advise debtors on the options available to them to manage or compromise their debts. These firms can undertake most of the work of drafting an IVA proposal. The supervisor named in an IVA proposal will typically be employed by the firm that has advised on the IVA. An insolvency practitioner can charge for their work as a supervisor of an IVA.

3. What is the Straightforward Consumer IVA Protocol?

• The Straightforward Consumer IVA Protocol contains standard terms for a typical IVA for consumer debts. It also gives guidance on:
o how a debtor should present their IVA;
o what constitutes an appropriate level of return to creditors; and
o how insolvency practitioners should calculate their fees in relation to such IVAs.
IVA proposals that follow the Protocol guidelines are referred to as “Protocol-compliant”.
• The Protocol has the support of the British Bankers’ Association and the professional bodies that regulate the conduct of insolvency practitioners.
• However, a recent High Court decision has held that the Protocol does not create any binding obligations and does not restrict a creditor’s right to vote against an IVA proposal, even if the IVA proposal is fully compliant with the terms of the Protocol. This may lead to creditors seeking more modifications to proposals as the “price” of supporting an IVA.

4. Other debt management procedures

Debt relief order

A debt relief order (DRO) will prevent creditors from enforcing their debts against an insolvent individual for a year, after which they will be discharged from liability for those debts.

Debt management plan

A debt management plan (DMP) is an informal, unregulated agreement between an individual and some or all of their creditors, under which they agree to repay what they owe (or an agreed lesser sum) over time.

More information

The information in this guide is provided as a general review and does not constitute legal advice. Detailed specialist advice should always be taken before taking or refraining from taking any legal action. For further information please contact:

Louise Engel lxe@royds.com 020 7842 1493
David Bowman dab@royds.com 020 7842 1407

ROYDS CLIENTS PROMINENT AT INTERNATIONAL JEWELLERY SHOW IJL - BY STEPHEN WELFARE

2010-09-06T11:00:00.002+01:00

The IJL kicked off at Earls Court yesterday showcasing some of the best in British jewellery design. IJL is the biggest tradeshow in the UK and is very important for suppliers and retailers wishing to meet and do business. I attended yesterday and lawyers from Royds IP unit will be at the show everyday through to Wednesday.

This year’s show had a real buzz to it with visitor numbers appearing to be on the increase from last year’s opening day. With a full program of free seminars in addition to over 500 exhibitors there is much for visitors to experience. Royds clients Gecko Trading have a prominent position by the entrance and is showing its full range of brands this year. Bright and colourful is prominent at IJL this year with charms and beads widely featured. Soft feminine shape and form remains on trend and few do it better than long standing Royds client Sarah Jordan. Seemingly swamped with interested buyers was award winning high fashion jewellery designer Shaun Lean.

Yesterday saw the launch of the Royds and Reed exhibitions rights in design initiative, pipr. Increasing awareness in intellectual property rights in original creations is a priority for the continued growth of the UK industry. Royds are working with IJL to do just that.

On the social scene the talk was of who had made it to the professional jewellers hot 100 list, and the party at Kensington Roof Gardens. The British Jewellery Association’s members reception takes place on Tuesday and I look forward to meeting clients and colleagues there.

Cheers!

Stephen Welfare
Partner
Intellectual Property Royds

Living with Myalgic Encephalopathy – By James Millar Craig

2010-08-31T17:47:00.000+01:00

Whilst it is encouraging to see scientists forge ahead with a possible cure for those suffering from ME (see yesterday’s news report regarding a new study in the US connecting ME and the retrovirus http://topnews.us/content/224930-new-research-help-cure-myalgic-encephalopathy) my work involves helping those who have the condition and need practical assistance now.

Sometimes, I am asked to help (in conjunction with my colleagues in the employment team) sufferers who have been dismissed or made redundant. More often, I am asked to tackle the mighty insurance companies who decline claims for ME and related illnesses, making the Permanent Health Insurance (PHI) of the sufferers and their employers useless. With my colleagues in the private client and tax teams, we help sufferers deal with the taxation implications of receiving a lump sum once disputes with employers or insurance companies are resolved.

More recently, I have been asked about ill health retirement pensions and the situation regarding those suffering from ME. Please give me a call or email (jmc@royds.com) or use the support of organisations such as ME Association (http://www.meassociation.org.uk/) or Action for ME (www.afme.org.uk).

Royds vs Christies of London – The cricket match by James Millar Craig

2010-08-31T16:48:00.000+01:00

Many thanks to fellow partner Chris Hall for organising such a successful event and to all the players and supporters who were there at Imber Court in Esher a few weeks back. Especially to those supporters (such as poor Jean Pocock, one of our secretaries) who made valiant efforts to get through the M25 - getting stuck for over six hours because of an accident blockage - which also prevented some of the Christies team getting there.

Peter Wooton from our corporate team was an excellent umpire and Gareth’s (from our property team) wicket keeping was large and heroic.

It was good to see a former Royds member of staff (he left 10 years ago to become a wood craftsman) Sean Travers and his family there. Patrick from the family team was not too pleased about being run out by Sean but took it all in the spirit of the game - after a few drinks!

All of our team, with a few notable exceptions such as myself, performed valiantly in the face of some quite good cricketers amongst the opposition.

Elizabeth Maberley (wife of one of our property lawyers) was present throughout with her King Charles Cavalier dog Rufus to support the team and Adam. Some folk from Venners (the specialist hospitality auditors within the Christies Group) also turned up from afar and were chatting to Stewart Wilkinson, our managing partner.

Thanks also to Alison Ayres (property), Jodie Evans (property), David Konviser (corporate) and Louise Engle (corporate) for turning up to support us.

A special mention is due to Patrick's children cheering on their dad and the very stylish Welfare boys – that’s what happens when your dad is in intellectual property litigation. Both ended up playing for the Christies team. Bradley (12) made six runs (as opposed to five for his dad!) and Joel (11) got two wickets in the final over. Clearly a chip of the old block - surprisingly polite too!

Oh and Christies won by 30 runs. Back to the practice nets lads!

Moving house stories by Jon Buckland, Royds Residential Property

2010-08-16T11:01:00.000+01:00

Having been helping people to move home for over 25 years, I’ve seen some funny and unusual things, but here are a few timeless classics:

Selling a property for an executor 20 odd years ago - The executor came into the office with his hand inside his jacket. He produced a package containing £18,000 in cash that he had found in the loft. I recommended that he searched very thoroughly and he came back, hand inside his jacket again... with another £18,000 odd in cash ! Each time I went nervously with him acting as security guard down Morden High Street to the Building Society to pay it in.

Burglars beware - I was an executor dealing with a house sale in Morden where the deceased had no family or friends and had left everything to charity. He had sadly died in hospital over the Christmas period so I had not seen him for a while. The side entrance to his house was booby-trapped with a trip-wire in case of burglars and every internal door was locked with the key hidden very carefully. It was a real puzzle trying to find the key to the next room. It took two days to gain access to every room.

Estate agent ploys - One client arrived early at a house for a viewing with an estate agent and the agent arrived whilst the client was finishing a phone call. He saw the agent put a note through the letter-box. When they went in the agent ignored the note but the client picked it up and it read something like : "I have noticed that this house is for sale and the price is very reasonable for this area. I am very interested and would be willing to pay the asking price for it. I do hope I am the first to make an offer for it. I will phone your estate agent later."

We’ve got lots more stories to share – but we’d love to hear yours too.

Simple ideas to improve cash flow management by Stephen Welfare, Commercial Dispute Resolution

2010-08-16T09:18:00.001+01:00

Cash flow is one of the most important aspects of running any business irrespective of the size of the organisation. A problem with cash flow is one of the biggest factors in why many businesses fail – even those that are highly profitable. Surprisingly, it is often those businesses that are growing fast that experience difficulties as their increased cash requirements temporarily outstrip their outgoings.

Commercial lawyers can assist with improving cash flow in a number of ways – and before it is necessary to resort to litigation (for example, when pursuing non payment for goods and services). Royds Commercial department advises on the measures and practices to adopt, for example:

• Check out major contracts and key customers
o Run credit checks and ask for references on critical contracts

• Change your payment terms
o Modify your terms and conditions of business and alert your customers

• Clarify your commitment and expectations
o Ensure your contracts are specific enough to avoid misunderstandings and that the process for resolving any disputes swiftly and inexpensively is agreed

• Seek extended credit from your suppliers
o Read the terms and conditions of your suppliers and negotiate payment terms

• Carry less stock
o Install technology and systems for more effective stock control and to allow smaller quantities to be ordered on a more frequent basis
o Obtain expert help in developing accurate forecasting systems

• Speak to the bank
o Negotiate better terms for overdrafts and loans

• Release money tied up in property
o Consider a sale and lease back arrangement for some or all of your premises

• Lease equipment rather than buying it
o Review lease and hire purchase agreements carefully

• Change your staff structure
o Consider short term contracts and agency staff instead of full time employees
o Outsource activities and services that are not core to your business

• Chase Debts
o Develop an effective credit control system

Credit control systems

The late payment of invoices contributes significantly to poor cash flow and also causes problems with the cost of borrowing and thus reduces profits. Prevention is better than cure and the better your credit management system, the better the recovery of payment will be.

However efficient the credit management system is there will still be those customers that do not pay up when they should, so prompt action is required. It is a simple fact that the sooner a business acts to recover unpaid bills, the greater the prospect of getting paid. It is easy to set up a simple but robust credit control system, and if things need to progress, legal action should be taken.

Royds’ Dispute Resolution Department has a team of experienced litigators able to take decisive action to recover debts through the appropriate legal proceedings. Note that for debts in excess of £5,000 costs are recoverable, whereas costs for claims below this sum are not.

For more information please contact John North Royds’ Commercial Department jdn@royds.com or Stephen Welfare Royds’ Dispute Resolution Department sbw@royds.com

Pre-packs – a possible solution for companies in financial difficulties by Louise Engel, Corporate department

2010-08-11T12:14:00.001+01:00

A short while ago the legal world was rocked when news about the serious financial problems at a leading law firm – Halliwells – was widely reported in the media. There had been suggestions that a pre-pack solution would be sought. This is where the business is sold without publicity to avoid a negative reaction from customers and staff and/or where there is a lack of funds to find a more sophisticated rescue option. As it happens, numerous law firms stepped in to acquire the different elements of the Halliwells’ business.

Pre-pack arrangements sometimes receive a bad press, with some seeing the creditors’ losses as unfair and others confusing them with the old practice of “phoenix” companies. Yet research from the professional insolvency body – R3 – indicates that in 2009, 90% of the jobs in pre-pack sales were preserved.

The advantages and disadvantages of pre-packs and the issues for directors are explored further in a new Royds bulletin – please email info@royds.com if you would like a copy.

Advantages and disadvantages of franchises by John North and Louise Engel, Commercial Department

2010-08-11T11:10:00.002+01:00

A recent High Court decision warns franchisors to ensure that when they provide advice to prospective franchisees, they do so with due skill and care. The Court held that the franchisor owed a duty of care to its franchisee and had breached that duty by giving negligent advice to the franchisee. The franchisor was also in breach of contract by failing to provide the level and quality of marketing advice and support agreed by the parties.

This blog highlights the advantages and disadvantages of franchising a business from a franchisor’s perspective.

What is a franchise?

A franchise is composed of a franchisor and at least one franchisee.
The franchisor is the business or individual that sells the right to use its products or services to another business or individual. The franchisor:

• Allows the franchisee to use a name which is associated with the franchisor.

• Exercises continuing control over the franchisee.

• Provides assistance to the franchisee (for example, advice on finding and acquiring premises).

The franchisee is the business or individual that purchases the rights to use the franchisor’s products or services. The franchisee will periodically have to make payments to the franchisor.

What are the advantages of franchising for the franchisor?

• Franchising provides a business with the opportunity to secure distribution for products or services more quickly than if it had to train up its own employees and develop its own internal marketing, sales and distribution organisation.

• Using a franchisee’s capital will enable a business to expand more quickly than if it had to find the funds itself.

• Many businesses involved in the supply of goods or services motivate their employees by linking their remuneration to sales. Franchising takes this one step further by linking the franchisee’s financial well-being to the success of the franchisor’s business.

• Franchising a business may provide the franchisor with increased purchasing power and possibly reduced overheads, therefore increasing its profitability.

What are the disadvantages of franchising for the franchisor?

• Loss of control. While a franchise agreement will impose substantial restrictions on the franchisees, it is important to remember that they will be independent third parties who will be seeking to maximise their own profits, sometimes at the expense of the franchisor.

• Part of the franchisor’s profits will be used to support the franchisee’s business.

• By involving a third party, the franchisor will have to divulge substantial know-how and information concerning its business. Although a franchise agreement will contain restrictions on the franchisees’ ability to make use of this information for their own purposes, these types of provisions are often difficult to monitor and enforce.

• The business skills required to control franchisees and provide back-up are different from those involved in operating a business with its own employees.

• A franchisor may owe a duty of care to its franchisees and prospective franchisees. The High Court has recently held that a franchisor must ensure that when they provide advice to a prospective franchisee, they must do so with due skill and care.

Launch of the first lunch time Business Network International (BNI) group in the City by Chris Hall, private client department

2010-08-11T09:19:00.002+01:00

Many people are familiar with the BNI chapters across the country and how their dedication drives them to get up extra early to attend 730am breakfast meetings. So I am delighted to be one of the founding members of the new BNI City Lunch chapter, which meets every Wednesday lunchtime. The group now has 25 permanent members with regular visitors from other City businesses attending. The group is an active referral network, which allows professional to build lasting relationships, which lead to work.

I’m currently the leading referrer in the group and have found that now that my own work has been tested, referrals back to Royds LLP have increased steadily.

Please see the link for where the chapter meets: http://www.bni-europe.com/viewchapter.php?chapter=1338 and let me know if you would like any further information about this BNI chapter or any other aspect of the group. As you may be aware, future members can only be from non competing businesses.

Warning for “Copy-Cats” Traders (Vodkat appeal) by Stephen Welfare

2010-08-03T14:03:00.000+01:00

Royds Intellectual Property Unit note the decision of the Court of Appeal on 30 July 2010 to refuse the appeal in the Vodkat case. Vodkat is an alcoholic drink that is mostly, but not only, made with vodka.

The High Court had found against the manufacturers of Vodkat in February of this year for extended passing-off. Vodkat sounds like vodka, and is very similar to vodka, but it isn’t the same. Following the champagne cases, the court ruled that using confusing labelling and/or descriptions was unlawful.

The Court of Appeal upheld the High Court decision even though vodka lacked any reputation for superiority.

Extended passing-off arises where there is inappropriate use of any sufficiently descriptive or generic term for a particular class of goods. It protects the goodwill in the class of goods, whereas mere passing-off protects the reputation of a particular business.

The Court of Appeal decision is surely a decisive warning to copycat traders.

Thoughts on social media, confidentiality and privacy by Louise Engel, Corporate Department

2010-07-28T09:07:00.003+01:00

(With thanks to our work experience guy Liam)

In the past five years, the growth of social media has been impossible to miss. From individual bloggers through to large well-known sites such as Facebook, YouTube and Twitter, social media has now become a large part of today’s society. With such growth in such a short period of time, any legal issues raised are bound to be thin on case law. However, like the internet beforehand, whilst there are risks to social media outlets, the benefits can be great if it is regulated sufficiently.

What is Social Media?

For those unaware of the term ‘social media’, it is any way in which information of any kind can be shared across the globe in short periods of time. Whilst industrial media (newspapers, television and film) is set in stone as soon as it is made and aired to the public, social media is a current, ever-changing and truly global phenomenon. Largely based on the internet, social media encompasses many forms; from social networking sites such as Facebook or MySpace, to information collaboration sites such as Wikipedia, and to literally thousands of blogs all across the internet, worldwide. Social media aims to get information out to as many people as quickly as possible.

Risky Business

However, herein lies the problem. With the advent of up-to-the-minute news outlets and forums for any person to speak their mind, the business world has viewed social media as a potential legal hazard.

Confidentiality is an important aspect of any business. Nowadays, there is a risk that confidential data could (inadvertently or otherwise) be posted online. However, what constitutes as public or private? On LinkedIn (a business social networking site), any user who can view an employee’s account could potentially see other clients or customers contacted from that LinkedIn account. The question is, ‘if the information is online, does this fall into the public domain?’ The answer is ‘yes’ and, as a guideline, it is suggested that ‘if you shouldn’t talk about it to somebody not involved in it, you shouldn’t post it online.’

Most of the risk affecting the business world though deals with the employer’s relation to its (potential) employees. On a CV, few people (if any) note their sexual or religious orientation. However, social networking sites can make it easy to find such matters, leading to possible problems of discrimination. In employment, unless the company outlines all practicable steps to avoid harassment, then in the case of an employer accusing another (regardless of whether it happened outside the workplace), then the company is liable. In recruitment, although it is easy to deny that candidate was overlooked because of their personal views, if the candidate was to find out the real reason, successful claims are very likely to be made.

Potential for good

Despite this, there is the prospect of social media becoming the next major development in the business world. In the 1990s, the internet was viewed with suspicion as a prospective deterrent from work and causing a drop in productivity. Today, however, millions of people are dependent upon the internet to do their jobs. With social media something similar could happen, from promoting the positive image of the business in a blog, to targeted advertising campaigns to interested consumers on social networking sites, or even to opening up business opportunities with new clients found through social media outlets.

Solution

For now, the big problem of confidentiality and privacy is most applicable to many companies. It should be made clear to all employees of the potential damage of posting on the internet particularly as it is a public forum rather than a private one.

Checklist of key issues for small and medium-sized enterprises (SMEs) in the 22 June 2010 Budget by Louise Engel, Corporate Department

2010-07-21T10:57:00.002+01:00

This checklist highlights the key issues for small and medium-sized enterprises (SMEs) in the 22 June 2010 Budget.

Key tax measures in the Budget

Corporation tax rates reduced from 2011-12

The main rate of corporation tax will be reduced to 27% (from 28%) for the year commencing 1 April 2011. This will apply to companies and groups whose annual profits exceed £1.5 million. Further annual reductions of 1% each subsequent year will also be made, culminating in a rate of 24% for the year commencing 1 April 2014.

The small companies rate of corporation tax will be reduced to 20% (from 21%) for the year commencing 1 April 2011. This will apply to companies and groups whose annual profits do not exceed £300,000.

Capital gains tax (CGT) rises to 28%

For gains arising on or after 23 June 2010, the rate of CGT increases to 28% for higher and additional rate taxpayers, trustees and personal representatives. Basic rate taxpayers will continue to be liable at 18%. The new rate will apply equally to any deferred gains that come into charge on or after 23 June 2010.

To a limited extent, a planning opportunity exists for the directors of owner-managed companies, who are able to control the amount of income that they receive in a given year. If such directors are planning to realise capital gains (for example, on the sale of a second home or an investment portfolio), they may be able to reduce their income levels for the year of the disposal in order to pay CGT at the lower rate.

Entrepreneurs’ relief increases to £5 million

With effect from 23 June 2010, the lifetime limit for entrepreneurs’ relief rises from £2 million to £5 million. This means that a tax rate of 10% will apply to the first £5 million of qualifying gains.

The increased lifetime limit will apply in relation to disposals on or after 23 June 2010. To the extent that any gains realised by the taxpayer before that date exceed the old £2 million lifetime limit of entrepreneurs’ relief, CGT will remain payable at the full rate of 18% on the excess, but only the £2 million of relief claimed will be set against the increased limit for future qualifying disposals.

Standard rate of VAT increased

The standard rate of VAT will increase (from 17.5%) to 20% with effect from 4 January 2011. The 20% rate will apply to supplies made on or after 4 January 2011 and acquisitions or importations taking place on or after that date. This measure does not affect supplies subject to other rates of VAT, such as the zero-rate or reduced rate.

Business

Corporate tax reform

The government announced a “roadmap for corporate tax reform”, with further details to follow in the autumn. The reform will be based on the government’s view that a broad tax base, a low corporate tax rate and a more territorial approach will make the UK’s tax system more competitive. The Budget Report states that “the manufacturing sector as a whole will pay less corporation tax as a result” of the government’s reforms.

Capital allowances: writing down allowances and annual investment allowance reduced
From 1 April 2012 (for corporation tax) or 6 April 2012 (for income tax), the annual rate of writing down allowances for both new and unrelieved expenditure on plant and machinery will be reduced to 18% (from 20%) and the annual rate for special rate pool expenditure will be reduced to 8% (from 10%). In addition, also from 2012, the maximum annual investment allowance will be reduced to £25,000 (from £100,000).

Small business tax review

The government has announced that it “remains committed” to a review of IR35 and small business tax, and that it will release further details “shortly”.

Zero-emission goods vehicles: 100% first year allowance

There will be a 100% first year allowance, subject to certain conditions, for the purchase of new and unused (not second-hand) zero-emission goods vehicles has been introduced. The allowance will have effect for a five-year period beginning on 1 April 2010 for companies (6 April for unincorporated businesses) until 31 March 2015 (5 April 2015 for non-corporates).

Employment and pensions

Enterprise management incentives (EMI) changes

The June 2010 Budget confirmed that a previously announced change to enterprise management incentives (EMI) legislation will go ahead. The change will enable companies with a permanent establishment in the UK to grant EMI options (currently, only companies which carry out a qualifying trade wholly or mainly in the UK can grant EMI options).

PAYE, workplace canteens and employer-supported childcare

The June 2010 Budget Report included the following announcements regarding PAYE and income tax measures:
• A commitment to explore ways of improving the PAYE system, starting with a consultation with employers and payroll providers on ways of capturing more frequent or even real-time PAYE data.
• A consultation on introducing powers for HMRC to require financial security where PAYE and NICs are at serious risk of non-payment. The consultation will also consider the proposed criminal penalty for failure to provide a financial security.
• Legislation to restrict tax breaks for workplace canteens will take effect from April 2011.
• Confirmation of changes to employer-supported childcare such as nursery vouchers, including the restriction of the tax benefits for higher and additional rate taxpayers, which will take effect for new joiners to a scheme on or after 6 April 2011.

NIC employer contributions

Employer NIC contributions will increase (from 12.8% to 13.8%) from 6 April 2011. The secondary (employers’) threshold will be increased by £21 above the Retail Price Index, also from 6 April 2011. At the same time, the upper earnings limit will be reduced to align it with the higher rate threshold.

Regional employer NICs holiday for new businesses

The government will shortly announce details of a scheme to promote the creation of new businesses in those parts of the UK that are most reliant on public sector employment. Those areas are Scotland, Wales, Northern Ireland, the North East, Yorkshire and the Humber, the North West, the East Midlands, the West Midlands and the South West.

During a three-year period, new businesses in these areas will be exempt from the first £5,000 of Class 1 employer NICs due in the first twelve months of employment. This will apply for the first ten employees hired in the first year of business. Subject to meeting the necessary legal requirements, the scheme is intended to start from 6 September 2010 but this has yet to be confirmed. Most kinds of business (including property and investment businesses) will be eligible for the scheme.

Research and development tax relief: abolition of IP ownership condition for SMEs
The government has announced that legislation will be introduced to abolish one of the conditions that a SME must satisfy in order to claim the enhanced tax relief for research and development (R&D) expenditure. Companies that are SMEs may claim an enhanced tax relief at the rate of 175% for qualifying expenditure on R&D.
One of the conditions that a SME company must satisfy in order to claim this relief is that the company owns any intellectual property (IP) deriving from the R&D to which the expenditure is attributable. The government has announced that this condition will be abolished. The change will have effect for any expenditure incurred by a SME company on R&D in an accounting period ending on or after 9 December 2009.

Enterprise Investment Scheme: investment in businesses “in difficulty” will not qualify
The Enterprise Investment Scheme (EIS) can be a valuable source of capital for SMEs: investors are entitled to tax reliefs, provided a number of conditions relating to the investee company are satisfied. The government announced in the Budget that EIS relief will not be available for investments in businesses that are in financial difficulty. This change will take effect from a date to be announced, irrespective of when the money was raised under the EIS investment. This means that the existing investments may be affected. The same change will also apply to investments by Venture Capital Trusts.

More charity mergers ahead? by Julian Rampton

2010-07-14T12:18:00.000+01:00

Recently, Third Sector magazine reported that City Parochial Foundation and Trust for London were merging in an effort to become more flexible and to end confusion for grant applications.

When people think about charity mergers, it is usually with regards to the really large ones – for example, when Cancer Research UK was formed in 2001 through the merger of Cancer Research Campaign and Imperial Cancer Research Fund to create the biggest cancer research charity in the world. Or more recently in 2008, when Help the Aged and Age Concern combined to form Age UK.

Impact of the recession

In March 2009, the BBC reported on Charity Commission research that showed 52% of those charities questioned had been affected by the economic downturn which was an increase from 38% the previous year. Almost two thirds of charities within incomes over £1m said at that time that they were worried their work would be hit. At that time only 3% said they had considered collaborating with or merging with a charity.

In March 2010, The Charity Commission’s fourth Economic Survey of Charities demonstrated the continuing effect of the recession on charities in England and Wales. The key findings of the survey of 1,010 charities showed 59% of charities reported having been affected by the downturn, up from 38% in September 2008 and 56% in September 2009. Of those affected, 62% had experienced a drop in income. The research also found that larger charities were hit hardest, with 79% feeling the impact of the downturn and a third seeing an increase in demand for services. This disparity is also reflected when looking at the steps that charities took in response to the downturn, with 79% of the largest charities putting measures in place, compared to 31% of small charities.

Charity Commission encourages mergers

However, the Charity Commission actively encourages mergers – particularly amongst the smaller charities. As the regulatory burden has increased for charities who must grapple with both company law and charity law a merger can be an attractive way to reduce the cost of administration, save money on premises, facilities, marketing, legal and accountancy costs and improve governance. It published two toolkits for charities in September 2009 – Choosing to Collaborate and Making Mergers Work.

Charity merger issues

Sometimes there is considerable restructuring to do within a charity before it can consider a merger – and this can be demanding work where a charity has grown organically and rapidly over many years in response to demand for its services without a more strategic overview of the charity’s structure and tax efficiency.

Aligning charitable organisations requires careful consideration of complex legal issues regarding objects, operations and governance as well as obtaining permission from the Charity Commission for the new entity assuming a new entity is being formed and then registering the new organisation. Some of the old style trusts don’t even have the power to merge.

Yet in addition to the legal and financial work involved in a charity merger there are a host of personality and political issues to contend with that require careful attention by professional advisers who must be sensitive to the issues involved in aligning the vision and values of the range of stakeholders involved in each charity – its management, trustees, patrons, staff, volunteers and the groups it aims to help. There may also be major interest (and opposition) on any talk of mergers by the media and the public where the detail and complexity are not fully understood.

There is likely to be considerable concern about how the new trustee and management teams will be selected. Typically, there needs to be a key individual at each of the potential merging charities who can see the big picture benefits (and the likely stumbling blocks) and who can drive the merger discussions at a sensible pace – in a corporate environment this would be the chairman’s role. Even in a straightforward situation a charity merger is likely to take six months, so it is not a quick fix.

However, as the cost of the Government’s crackdown on public sector spending and the public further tighten their belts to deal with the austerity measures there is likely to be further pressure on charities with increased demand for services and further reduction in funds from the public purse and donations. I expect to see an increase in interest in mergers as a way for charities to reduce administrative costs and pool resources to achieve their goals.

Wish you were here - Judgments by the sea (Privy Council in Mauritius) by Richard Woodman

2010-07-09T10:29:00.003+01:00

Both the Sunday Telegraph (http://findarticles.com/p/news-articles/sunday-telegraph-the-london-uk/mi_8064/is_20100627/judgments-bench-beach/ai_n54216294/) and Private Eye have recently had a bit of fun at the expense of some of the UK’s most senior Judges. The subject of the journalists’ mockery was the latest in a series of overseas sittings by the Judicial Committee of the Privy Council.

The Privy Council is the final Court of Appeal for a number of smaller Commonwealth jurisdictions including countries in the West Indies, as well as Mauritius. Historically, hearings for the Privy Council have taken place in Downing Street (although this venue has now moved to the Supreme Court in Parliament Square). The idea that final Appeal Hearings might take place locally first arose in connection with the Bahamas. Since then there have been two further sittings there and, now, two in Mauritius.

Royds has the great privilege of acting as Privy Council agents for the Government of Mauritius and in that capacity I have had the fortune to witness the sittings in September 2008 and April 2010 first hand. On both occasions the informal feedback was that the visit of the Law Lords was generally welcomed. The sittings were well attended by the public (on a number of occasions there being standing room only). The local legal profession has been particularly enthusiastic, clearly relishing the opportunity to witness the decision making process at first hand.

All this though clearly comes at a cost, and it will no doubt be a matter of personal opinion as to whether the cynicism of the journalists is justified. It has to be said that the Telegraph article hardly hits the heights of moats and duck houses and, indeed, fairly acknowledges that by far the largest part of the cost was picked up by the Mauritian Government. Some may just feel that it is inappropriate for public servants to reside at such apparent luxury whilst carrying out the job for which they are paid, regardless of who is picking up the tab.

On the other hand, is this simply petty jealousy which obscures the real value of an important initiative designed to show the people of the Bahamas and Mauritius that this is very much “their” court and not some remote post colonial hangover? Is it a small price to pay for the opportunity to have a final determination of your case (no matter that the Telegraph may think it trivial) decided by some of the finest legal minds in the world for the cost of a few plane tickets and hotel rooms?

Landlords and tenants: Changes to the Assured Shorthold Rent Threshold by Michael Smith

2010-07-09T09:25:00.003+01:00

Following the Assured Tenancies (Amendment)(England) Order 2010 the rent threshold for Assured Shorthold tenancies ("ASTs") will increase from £25,000 to £100,000. This will take effect from the 1st October 2010.

Currently all tenancies with an annual rent of over £25,000 are not ASTs and therefore are not afforded the protection of the Housing Act 1988. Upon the expiry of the contractual term of the tenancy, the landlord can issue standard possession proceedings to obtain vacant possession. In addition, any deposit paid to the landlord is not required to be placed into a Tenancy Deposit Scheme ("TDS").

Under the new rules, all tenancies with annual rents of upto £100,000 will now be ASTs. This will also apply to residential tenancies granted prior to the 1 October 2010 which meet the other requirements of an AST.

Landlords should make the necessary arrangements to protect any deposits they hold that now need to be within the TDS scheme. In addition, they will need comply with the notice provisions under the Housing Act 1988 when seeking possession of the property. Likewise tenants need to be aware of the change so as to ensure that they are afforded the maximum protection possible in relation to their tenancy and any deposit paid.

The consequences for landlords are that there may be a delay in obtaining possession due to having to comply with section 8 or section 21 of the Housing Act 1988 and the various notice requirements.

For more details please contact me or anyone in the Property Dispute Resolution Department.

State schools converting to academies by Julian Rampton

2010-07-09T09:03:00.000+01:00

Most people in the education sector – whether private, charitable or state funded – will be aware of the Government’s changes with regards to academies. Though we are awaiting further details, it is likely that a significant number of state secondary schools will convert to academies.

All academies are bound by the same School Admissions Code, SEN (Special Educational Need) Code of Practice and exclusions guidance as all other state-funded schools. There are currently 203 academies open in 83 local authorities and a further 100 are expected to open in 2010 – the Government is committed to establishing at least 400.

All new academies are also required to follow the National Curriculum programmes of study in English, maths, science and ICT. All academies - like the large majority of secondary schools - have specialist school status, and have a specialism in one or more subjects. Each academy is unique because the programme's focus is on fitting each academy to its community and circumstances. The Government sees academies as engines of social mobility and social justice, and there is a growing body of evidence that they are working - NFER research, independent reports from Ofsted, the NAO and PricewaterhouseCoopers - as well as GCSE and Key Stage 3 results.

The National Curriculum has now been made more flexible to accommodate the kind of innovation that academies have enjoyed. Since the summer of 2007, all newly signed academy funding agreements require academies to follow the National Curriculum programmes of study in the core subjects of English, maths, science and ICT. They will retain flexibility beyond this, for example, to address the needs of particularly low achieving pupils.

Academy status effectively releases a state school from local authority control – providing the potential for some flexibility on the curriculum and local authority services such as admissions. Furthermore, staff are released from national pay structures. A contract (funding agreement) is developed between the school and the State and the lands and buildings are transferred to a trust which is run by the members and governors. Teaching and other staff also transfer to the trust under TUPE terms. The Government has since widened the net – a sponsor will no longer be needed and whilst State schools with an “outstanding” Ofsted inspection status can start the conversion process now (which is anticipated to take about three months) those who have “good” or “satisfactory” will need to hear further news from the legislators. The Government provides a grant to cover the legal costs of transferring to academy status.

Further information is available on http://www.standards.dcsf.gov.uk/academies/

Emergency Budget update by Chris Hall

2010-06-23T08:48:00.002+01:00

Beware the stroke of midnight! From last night Capital Gains Tax will increase for higher rate tax payers to 28%, but lower rate tax payers will still pay 18%. The annual exemption remains at £10,100. However Entrepreneurs' relief has been extended to the first £5 million of gains.

As predicted in the Royds tweet in May, VAT has been increased to 20% from 4th January.

Income tax stays the same except for an increase in the personal allowance to £7,475 from April 6th 2011.

Corporation tax is reduced from 28% by 1% per year from April 2011 over the next four years.

Stamp duty remains the same with the retention of the planned increase to 5% on property sales over £1 million.

Inheritance tax remains at 40% above the current allowance of £325,000, which is frozen until 2014-15.

Finally, you can still drink cider to celebrate or commiserate England’s performance, as the planned increase in cider duty on 30th June will not go ahead!

Kiev – Interleges AGM by John North

2010-06-18T12:17:00.002+01:00

I recently attended the Interleges AGM in Kiev, Ukraine – which happily coincided with the Kiev Day Festival (Day of Kyiv) so that many of the city centre’s roads were closed, there were bike races, street performances by artists and musicians and other family events which created a relaxed, party feel.

Like all Interleges events, it is good to catch up with colleagues from all over the world – and we chatted to lawyers from Belgium and Luxemboug (Philippe Partners), France (ABCR), Finland(Hedman), Ireland (Reddy Charlton McKnight) and Spain(Legse Abagados) amongst others. Chris Hall, the new partner in our Family Wealth department was delighted to meet up with the various member firms with private client practices from all over Europe and the Middle East including Badri & Salim El Meouchi Law Firm of Beirut and Qatar.

We agreed that we would hold an environmental law conference – focusing on the carbon credit market - to coincide with the AGM next May in Paris. It was also agreed that the 2012 AGM will be hosted in Beirut. We have also established an Arbitration and International Enforcement Work Group which will be led by our members in the United States (Anderson Kill & Olick) and Sweden (Delphi & Co).

On the final evening there was a reception in the Mariyinsky Palace (built originally in 1745 by an Empress) – the official ceremonial residence of the President of Ukraine - where we were entertained by a small string orchestra featuring a leading Ukrainian violinist. It was a marvellous.

I admit that I was pleasantly surprised at Kiev. Having expected a grey former Soviet city that was rebuilt after the war, there is a variety of architecture – including a significant number of beautiful Tsarist era churches and buildings and – boosted no doubt by the festival – a genuinely warm, lively and welcoming atmosphere.

Many thanks to our Kiev member firm for hosting the event - T & O Buyanovskaya.

South London residential property market picks up by Jon Buckland

2010-06-10T10:35:00.005+01:00

It's really good to be so busy again after the devastating impact on the property market during the recession where transaction levels dropped by over 80%.

We didn't see much change when the HIPs were abolished and I don't think that the high levels of activity we have seen over the past few weeks are people trying to move before the Emergency Budget later on this month.

During the recession, people postponed moving but the recovery means that they now have to consider moving to accommodate their larger families.

Whilst we cover a wide area in London and the South East, we have seen particularly high levels of activity in Wimbledon, Morden (where we are based), Merton Park, Wandsworth, Raynes Park, St Helier, Sutton and Carshalton. Long may it continue!

Legal issues for direct marketers by David Konviser

2010-06-10T10:25:00.002+01:00

We've just produced a fairly detailed bulletin about the legal issues surrounding the use of databases for direct marketing purposes.

Most businesses will have some form of database containing customer and prospect information and will send out marketing materials to alert people to their products and services.

The briefing sheet covers issues including:

- Data Protection
- Fair Processing Notices
- Collecting and storing customer data
- Opting in and opting out
- Sending solicited and unsolicited materials

Please let me know if you would like a copy of the bulletin or if you would like to discuss any of the issues

Protecting the Intellectual Property of Jewellers by Stephen Welfare

2010-06-10T10:21:00.002+01:00

Delighted to see that various jewellery sector magazines (including Retail Jeweller, Drapers OnLine and Jewellery Outlook) picked up the news of our Promoting Intellectual Property Rights (PIPR) initiative which will launch at the International Jewellery London (IJL) 2010 trade show in September to help protect jewellers’ designs.

PIPR will be promoted before and during the show and will highlight the value of intellectual property rights and provide a visual warning to would-be copiers of designs that IJL will not condone any form of infringing conduct at its shows. Lawyers from Royds intellectual property unit will attend the exhibition to provide advice to members of the British Jewellers’ Association under the Copywatch scheme.

Future changes in Capital Gains Tax by Chris Hall

2010-06-10T10:19:00.002+01:00

You will no doubt be aware that the rate of Capital Gains Tax (CGT) is set to rise on 22nd June at the Emergency Budget. Whilst it is difficult to predict the exact nature of the tax changes, it is advisable to consider taking pre-emptive action to lock in the existing gains under the CGT regime.

There are a number of techniques that you can consider, for example, selling an asset or transferring it to a discretionary trust or another family member if appropriate.

There are clear advantages in taking pre-emptive action, including the possibility of locking in current gains at 18% particularly if any gains can be covered by the current CGT annual exemption. Since some predictions say that CGT could rise to as much as 50%, there is a huge potential tax saving. There is also the possibility of accelerating inheritance tax planning and removing assets from an estate for inheritance tax purposes.

There is a chance that the tax changes may be retrospective so any step should only be taken if they are practical, particularly since any assets held would crystallise a CGT bill which would be payable by 31st January 2012. There would also be stamp duty of 0.5% on any share transfers that may arise which will need to be funded separately.

The tax changes are particularly relevant if you are in the process of or expecting to sell a business or shares, or if you hold assets such as buy to let properties and investment portfolios with large inherent gains, and you are expecting to sell them in the short to medium term.

The economic outlook for London by John North

2010-06-01T18:02:00.001+01:00

The latest report by Oxford Economics on the economic outlook for London shows:

• London is expected to see a small increase (.4%) in GVA (Gross Value Added) during 2010 after a difficult 2009 where they estimate the region saw a fall in GVA of almost 5%.

• The Construction sector is expected to increase 7% in 2010 as some Olympic effects feed through and house building picks up.

• The employment situation is better with “only” a 2% reduction (almost 100,000 jobs) in 2009 – with the financial services sector losing 4% of jobs and the closely related business services sector (including real estate, renting and insurance) experiencing a 3.8% fall in employment. A further 20,000 job losses (-.4%) are forecast for London in 2010.

• The second half of 2009 saw UK house prices rising strongly (the Department for Communities and Local Government figures show that London house prices rose 6.1% in 2009 Q3) although in recent months (2.3% in 2009 Q4) the market has cooled somewhat. London has been a driving force behind the upturn in prices.

• Research on commercial property from GVA Grimley shows that prime rents fell 25% during 2009 across Central London with prime Mayfair rents experiencing a fall of 37%.

• Of all the UK regions, London has the most upside risks attached to its forecast. From 2011 onwards they expect the capital to perform significantly better than the UK average.

The full report is available at: http://www.oef.com/OE_FA_Display_Frm.asp?Pg=UKSpec&Txt=UK%20Economy#

Launch of 2010 "Business in the City Legal Briefings” by Duncan Holden

2010-06-01T18:01:00.003+01:00

This week we are launching a new series of short business briefings for senior business people in the vicinity of our City offices near St Paul's - they only last an hour and take place at 9am with a repeat performance the same day at 6pm.

As well as providing a great opportunity to meet with other local businesses, the events will be attended by Royds commercial specialists and by lawyers from our Family Wealth Department who advise on personal matters.

The following dates and topics are currently scheduled:

8th July – Dealing with staff fairly (Gemma Webb, employment partner)

23rd September – Minding your premises profitably (Robert Lloyd-Davies and Gareth Williams, partners in our commercial real estate group)

11th November – Working effectively with agents and distributors (John North from the commercial department and Stewart Wilkinson, head of commercial litigation)

28th January 2011 – Protecting your information and ideas (Stephen Welfare and David Konviser from our intellectual property unit)

3rd March 2011 – Board Room Briefing (Myself and John North)

Please let me know if you would like any further information – 020 7842 1402

Economic Outlook for London by John North

2010-05-26T10:28:00.003+01:00

The City of London Corporation recently released its latest update on the economic outlook for London.

The report is available for anyone to download and the key points included:

GROWTH

London is expected to see a small increase in GVA (Gross Value Added) of around .4% in 2010 (estimates are that the region saw a fall of GVA of almost 5% in 2009).

Further growth up to 3.1% in 2011.

The construction sector is expected to make a strong bounce back with a GVA increase of 7% in 2010 as some Olympic effects feed throug and house building picks up.

EMPLOYMENT

There was 'only' a 2% reduction (almost 100,000 jobs) in employment in 2009

However, the financial services sector lost 4%, the business services sector (real esate, rent and insurance)saw a 3.8% fall and London's shrinking manufacturing sector fell 8.5%.

A further 20,000 job losses are forecast for 2010.

WORLD POSITION

The latest Global Financial Centres report has London level pegging with New York when it comes to competitiveness in financial services. But there are fears of a regulatory structure being imposed that limits the freedom of financial institutions and higher levels of corporate and personal tax.

OTHER FACTORS

The second half of 2009 saw UK house prices rising strongly but the market has cooled since then. London continues to perform better than the US average according to major lenders and teh Department for Communitities and Local Government. House prices in London forecast to increase by 2.1% in 2010 with a slowdown in 2011.

Overall though, the report was positive - from 2011 onwards London is expected to perform significantly better than the UK average because London's performance has been strongly linked to global fortunes and this relationship is exptected to hold.

“Sweet smell of success for Trade Mark Owners – Bad odour for consumers” by Stephen Welfare

2010-05-26T10:16:00.002+01:00

In a victory for trade mark owners, the UK Court of Appeal has followed the ruling of the European Court of Justice (ECJ) that the use of a registered trade mark in a comparison list telling customers which famous fragrance the Defendants “smell-alike” products resemble was an infringement; L’Oréal -v- Bellure and Others [2010] CA.

L’Oréal complained that Bellure and Others “smell-alike” products were marketed in a packaging which took unfair advantage of its own product names, packaging and brand image, contrary to the Trade Marks Act 1994 and corresponding EU Trade Marks Directive. L’Oréal also contended that comparison lists, comparing L’Oréal’s marked brands with the Defendant’s products, similarly took advantage of it’s registered trade marks when used to sell the Defendant’s products and when dealing with customers’ queries.

In the judgment handed down on 21st May 2010, the Court of Appeal upheld L’Oréal’s complaint. The court felt obliged to do so following an earlier ruling of the ECJ but was clearly unhappy at having to do so. Lord Justice Jacobs said “The ECJ’s decision in this case means that poor consumers are the losers. Only the poor would dream of buying the Defendant’s products. The real thing is beyond their wildest dream. Yet they are denied their right to receive information which would give them a little bit of pleasure, the ability to buy a product for a Euro or so which they know smells like a famous perfume.”

Stephen Welfare of Royds’ Intellectual Property Unit commented: “We may expect to see the continuation of price comparison websites and the likes of supermarkets using the comparative advertising rules, for the benefit of consumers shopping around for good value, but anyone now thinking of doing so to promote their goods or services must be very wary of comparing their products or their products characteristics to those of established brands.”

All change for the Family Wealth Department by Patrick Hart

2010-05-11T13:42:00.004+01:00

Whilst Royds is probably best known for all its commercial work, a significant part of the business is involved in serving the needs of private individuals - whether they are senior executives working in the City of London or on overseas assignments, families with large estates in the Home Counties, media and sports celebrities or entrepreneurial company directors.

Because we help these individuals with a wide range of different issues - whether it is tax planning, dealing with the death of a family member, coping with separation and divorce or moving home we have brought together all the lawyers from our family, private client and residential teams to create the Family Wealth Department.

We are also delighted to welcome Chris Hall, who joined us at the start of May, as the new head of Private Client Services. Next time you are near Carter Lane, please pop in for a cup of coffee to say hello.

Retail Property Quiz by Jodie Evans and Baz Nahar

2010-05-11T13:26:00.004+01:00

On 29th April 10 teams representing organisations such as Arcadia, Monsoon, East, EAT, Caffe Nero, Scribbler and Pardoe & Wood met at Davy's Wine Bar in Creed Lane, just around the corner from Royds' offices, for the second Annual Retail Property Quiz.

Entry fees and raffle tickets (where the prizes included Eurostar tickets and vouchers for Gordon Ramsey's restaurant and The Sanctuary) were used to raise money for the Retail Trust charity.

There were various rounds of questions, posed expertly by Mark the manager of Davy's, on subjects as diverse as general knowledge, sport, geography and gameshow catch phrases and inbetween everyone sustained themselves with tapas brainfood and the odd alcoholic beverage.

The Royds team was out in force - head of property Robert LLoyd-Davies and property partner Gareth Williams led the rest of the commercial property team including Baz Nahar, Mark Newbold and Jodie Evans.

There was also a team of other Royds folk with Lucy Tangen, David Bowman and Mike Smith from litigation supported by Stewart Wilkinson who is head of commercial litigation and also managing partner.

Meanwhile, Adam Maberly from residential property, employment partner Gemma Webb and corporate partner Duncan Holden joined a team comprising people from Arcadia and East.

But demonstrating that keeping alert with the aid of caffeine is a winning formula, the trophy this year was won by the team from Caffe Nero. We are already looking forward to next year.