How do the upcoming changes to insolvency rules affect creditors after April 2017? - 20th February 2017
A new set of rules is set to land on the 6th of April 2017 that will alter the direction and process of insolvency practice. This comes as an extremely welcomed change as the rules have remained relatively untouched since 1986 and the creation of the insolvency act. These changes have been carefully crafted by the government in collaboration with members of the insolvency profession, and have the mark of approval from the IRC (Insolvency Rules Committee). What can we expect from the revised set of rules? How will they affect procedures? What affect will they have on creditors and practitioners alike? Although the rules are listed in-depth in a 446-page document, the below summarises the key points:
In the world of business, there are many different legal injunctions and petitions that can be raised against an organisation that is experiencing financial problems. It is important that you fully understand the implications of any such petition, how to deal with it, and what it could potentially mean for the future of your business. Once such legal injunction is the winding up petition – Read on to understand the principal behind this legal term and how it can affect your business.
Thousands of nominations have been received from the public for The British Muslim Awards 2017, which is testament to breadth of talent and success, making it apparent that British Muslims across the nation are waving the flag of success.
It wasn’t long ago that BHS, the department store from our childhood, went bust. Now, there’s another problem—a pension deficit. What this means is essentially BHS can’t afford to pay out the required pension to its former employees. Philip Green bought BHS in 2000 and since then his record of managing the business has been somewhat patchy to say the least. The pension deficit is just another thing to add to the seemingly never ending saga.
Having your employer go into liquidation or administration is something that no employee wants to happen. Usually it’s the fear of the unknown in these circumstances, and that’s normal, but it’s also incredibly important, more than ever, to know exactly what your rights are and what you’re entitled to claim.
When it comes to business relationships, delayed payment terms are a given. From two weeks to 90 days, chances are that a gap between sending an invoice and receiving payment is going to exist. But what happens if in-between accepting goods and processing payment, a customer goes into some form of insolvency? For suppliers, this can wreak cash flow havoc and may even throw their own business into financial difficulties. The goods have left the building, but payment hasn’t been received. And without effective retention of title provisions in place, it probably never will.
Small businesses may have been pegged as the ‘backbone’ of the British economy, but becoming an established SME is no easy feat. The latest statistics from commercial insurer RSA reveal just how treacherous the path is, reporting that more than half of new businesses don’t survive beyond the five-year mark.
In desperate times, it’s all too easy to resort to desperate measures. And for some entrepreneurs, this means falling for solutions that are fast, easy and effective. Or so it seems. Unfortunately, what most entrepreneurs don’t understand is that ultimately, these business recovery ‘cowboys’ only make problems worse. In these situations, the old mantra is true, “if it seems too good to be true, then it probably is”.
Is Your Business Compliant?
Running a business is no easy feat, particularly when rules and regulations are continually evolving. April 6th saw the introduction of a new law, with the Department for Business Innovation and Skills making it compulsory for companies, LLPs and SEs to keep a register of 'people with significant control' (PSC) within their operations. The new legislation is part of The Small Business Enterprise and Employment Act 2015, which calls on businesses to compile and maintain lists of keynote persons.
Since 30th June, these laws have tightened even further. Existing UK companies are now required to incorporate PSC Register information (soon to be reamed confirmation statements) when submitting Companies House annual returns, while all new companies must submit a “statement of initial significant control” when putting forward initial Companies House applications.
In April R3 (The Association of Business Recovery Professionals) published new proposals that would see companies being able to file for at least three weeks of protection from its creditors and possibly up to six depending on the circumstances. This would mean that the company’s creditors would not be able to collect or recover any debts during that time. Great for the companies you may think but where does this leave the creditors?
With the demise of large retail stores such as BHS and Austin Reed, many people, experts and individuals alike, are wondering whether the retail sector will ever recover. To answer this question, it’s important to look at the reasons as to why BHS and Austin Reed did manage to go into administration and what this means for other stores as well, but then look at the way that they handle their marketing, management and even what they sell in order to determine the fate for other retailers.