Blog posts - business news

Most small businesses learn early on that there is a difference between being busy producing and selling goods or services and actually getting paid for them. The temptation to extend credit terms to customers so they can buy your goods might seem like a good idea at first but, in reality, you are l...

A recent case has highlighted the position of formal demands under personal guarantees. In October 2018 the High Court decided that Barclays Bank could rely on a formal written demand even where the amount specified was incorrect as it exceeded the liability cap in the guarantee.A simple guarantee d...

What are your plans for the future? At the present time it might be simply to hang on in there and stay in business. Despite that most business plans will include future expansion and/or exit strategies at some stage. In either case, those plans should include making sure the business is legally pre...

Being a business solicitor based in Northampton I was pleased to hear the news last month that Northampton had been successful with its bid to develop an Enterprise Zone and interested to find out exactly what the benefits for local businesses would be. The Enterprise Zone is a government initi...

More than you might think and yours might be one of them! Now I’ve got your attention, let me explain. Every website should have a set of policies, designed to protect you and also the visitors to your site. If you sell products or services via your website, the requirement is even greater; no...

I have blogged previously about the pros and cons of doing business without properly drawn up contracts - Contracts – insurance for business and Beware contracting by email. From 1 October 2011 the issue of how you contract becomes even more important for companies in the construction and engi...

Many businesses and indeed anyone who has suffered loss as a result of the recent riots may find that they are not insured. Most insurance policies exclude losses caused by riots.But there is a possible source of compensation, if only for damage to buildings. The Riot (Damages) Act 1886 covers loss ...

Although the noises coming from BIS (the Department for Business Innovation & Skills) are upbeat when it comes to the fight against Red Tape, we have yet to see real changes. I wonder how much is just noise (and distraction from the awful economic growth figures) and whether the government&rsquo...

It’s not just the weather that’s bad this summer; the economy’s not looking too sunny either. Bank lending to businesses continues on its downward track with the reduction in lending in June being faster than the average of the previous six months. Small businesses are particularly...

A ‘pre-pack’ is a legal process where the business and assets of a struggling company are sold immediately after it is placed into administration. As the name suggests the deal is agreed beforehand meaning that unsecured creditors (including landlords) are not given the opportunity to ob...

The Bribery Act comes into force on 1 July 2011. In February and April I blogged on the implications, but I would just like to recap on the main points and highlight 2 Case Studies. The Act creates 2 general offences, one of offering, promising, or giving a bribe, and the second of requesting, agree...

Back in February I posted a blog introducing you to the Bribery Act and promised an update when further news was available. The Ministry of Justice has now published its long awaited Guidance on the Act, and announced that the Act will come into force on 1 July 2011. It has also produced a very usef...

It wasn’t an exciting budget, and it did contain some help for SMEs, but did it go far enough? The government is beginning to realise that sustained economic growth will need to come from the SME sector but should it do more to boost this vital sector? The focus for the economy as a whole rema...

Since it first came to power, the government has promised to reduce the excessive red tape that is strangling British business, and SMEs in particular. It introduced a ‘One In One Out’ system where new regulation would only be introduced where another piece of regulation could be removed...

The Bribery Act 2010 became a statute last April. It had cross party support, and was intended to fulfil our treaty obligations. It was due to come into force this April, but is now being delayed. So what is all the fuss about? And why should SMEs be concerned with it? The Act creates 2 general offe...

Are you optimistic or fearful as we enter the first month of 2011? Will it be a year of growth, consolidation, or one in which your business will struggle? I’m a firm believer in taking an optimistic view whilst also preparing for the worst case scenario. With that in mind I was researching th...

Current market conditions mean that many business owners and directors are having to face up to the consequences of personal guarantees they signed when they first started their business, took out a loan or signed a lease agreement. I've heard of numerous small business owners who have had thei...

As we approach the end of 2010, the economy is still very fragile. However, most of the small and medium businesses we have been talking to are showing some improvement compared to this time last year. Our clients are saying they are busier now than they have been for a couple of years, although it ...

It’s been a long 5 months since the drama and political intrigue of the General Election. Most political debate has been about public sector cuts but, until now, no one had really known what they would entail. As far as small and medium businesses are concerned, are we really any the wiser fol...

The Emergency Budget showed that the government are seriously committed to reducing the budget deficit, primarily through public sector cuts and an increase in VAT. Predictably the politicians have since been arguing about whether this is too much too soon (with the risk of a double-dip recession) o...

I have blogged before about the coalition government's promise to remove excessive red tape and to allow businesses to nominate their most hated business laws.Well, at last our chance is here. The government has now launched its Your Freedom website where we can tell it what regulations we want to s...

According to a recent Federation of Small Businesses (FSB) survey, although the level of small business satisfaction with high street banks remains low overall, one of the most important things firms looked for in a bank was a good working relationship with their business manager. There was a strong...

The government has taken its first steps to reducing the amount of red tape which is stifling business, particularly SMEs. The Business Secretary, Vince Cable, has announced an action plan to tackle excessive regulation. It includes the following: The creation of a new Cabinet “Star Chamber&rd...

When the final Coalition Agreement was published last week, Nick Clegg announced that the government would be asking people what laws they wanted to be scrapped. It was a manifesto pledge of both the Conservatives and Lib Dems for there to be a “one in one out” policy as far as business ...

The long-awaited Full Coalition Agreement has now been published, which sets out what the coalition intends to do during its time in office. Refreshingly, it has a section specifically on business, something which the individual party’s manifestos failed to do. Unfortunately, there are a lot o...

Birmingham is officially the top European city for promoting entrepreneurship It was announced on Monday that Birmingham was number one in the prestigious European Cities Entrepreneurship Ranking for promoting entrepreneurship. This category ranks Europe’s cities as to how they promote and sup...

The new coalition government has published their Coalition Agreement. It is difficult to see what measures remain in place to support SMEs. The agreement does, however, include the following:* Cancelling some backdated demands for business rates;* Generous CGT exemptions for entrepreneurial bus...

A poll by the Federation of Small Businesses (FSB) reveals that 54% of small businesses are planning not to expand following the election result. I am not surprised. The simple fact is, that for a small business to expand, it needs confidence that customers will be there to buy its products in the f...

The magazine for small businesses and entrepreneurs, Real Business, reports that a new survey suggests a lack of education and training for entrepreneurs is holding back many people from setting up their own businesses.The research, published by the Global Entrepreneurship Monitor (GEM), shows that ...

As election fever (as well as volcanic dust) sweeps the country, we have had a look at the manifestos of the 3 major parties to see what they promise to do for small and medium businesses. Our view is that real steps need to be taken to support SMEs through the recession and recovery process, and th...

Whether you employ young people for paper rounds, to help out in a local shop or restaurant or offer them work during school holidays there are some restrictions to be aware of and rules to be followed if you employ anyone under the age of 18.So what is the law for England and Wales? Limits&nbs...

According to the DTI the number of individuals declared bankrupt in the 3rd quarter of this year (2004) rose to 9,156, 28.8% more than for the same period in 2003. It is forecast that there will be about 50,000 bankruptcies next year, compared to an annual total of about 32,000 in the last major rec...

Download a PDF version of the Cousins Business Law Guide to doing business in the UK here.In spite of the current global climate, cross border trade continues and, for any foreign owned company doing business with firms in the UK, there are some basic aspects of the UK legal system which are essenti...

Whether you are thinking of approaching a lawyer to give advice on your business or personal matters you should make sure you find a lawyer who you feel comfortable with and whom you trust to give you good advice. Cousins Business Law has produced the following checklist. Use it to make sure you get...

My company’s got financial problems. What can I do?You know you’ve fundamentally got a good company but something’s happened to put it in serious financial difficulty. Perhaps a customer hasn’t paid a large bill, or has raised a dispute. But you’ve still got suppliers a...

You may have heard of the problem a large London law firm had when an email with their name on it went around the city and then across the world, containing apparently very detailed praise of one of the lawyer’s sexual abilities sent from the man’s girlfriend. She, shall we say, made it ...

Things aren’t looking good. We hear on the news every day about the credit crunch, rising inflation and economic growth stalling. Most commentators are saying that things will get worse and stay bad for some time before they get better. All this will inevitably mean that pressure will be put o...

Cousins Business Law licensing specialist Nigel Musgrove has been named as a leader in his field in Chambers UK 2010.Nigel specialises in licensing and gaming law advising breweries, pubcos, hotels, pubs, restaurants and clubs. He has acted as legal adviser to a local authority during the licensing ...

Giving with one hand, taking away with the other? The chancellor’s pre-budget report is perhaps no big surprise in delivering both pluses and minuses for the small business owner. Along with The Federation of Small Businesses (FSB), I welcome the chancellor's decision to defer the one pence ri...

A Federation of Small Business survey showed that an average SME spends 7 hours every week coping with red tape; and a Federation of Private Business survey revealed that the cost to SMEs of compliance was £9.3 billion each year.With so many SMEs struggling in the present economic climate shou...

It’s heartening to read in the Independent that small and medium sized firms are ‘poised to lead the country out of recession.’ Our experience of SMEs – our clients – is that they are indeed innovative and determined to succeed as the Independent’s research sugges...

After my article in last month's ezine, you wouldn't expect me to be surprised by this but there seems to be a growing consensus that the worst is not yet over.This is an extract from a report on Bloomberg:U.K. banks are less than half way through posting 240 billion pounds ($398 billion) of lo...

There’s a new feeling in the air in certain quarters – one of optimism – and I’m sure I’m not the only one who’s feeling it. For those of us who follow all the research statistics about SMEs and the recession, this summer has been full of conflicting news. There h...

It is estimated that the first serious wave of Swine Flu will hit the UK between August and November this year with the cities being affected more than the countryside. This means that approximately 12% of the workforce nationally is likely to catch it during this period. The impact on SMEs is likel...

Solicitors firms outside London are showing no signs of a recovery. According to an article in The Times this week, many such firms saw their profits fall by more than a third last year. The Article reports that many firms are imposing salary cuts of 10% or so in return for longer holidays as a way ...

Yes, according to new research published today by Creditsafe. They say that 33% of British firms are planning to stop using cheques to pay other businesses within the next 12 months, and that 11% are planning to stop accepting cheques altogether! Instead, they plan to rely on direct bank transfers (...

The economic news continues with its mixture of good and bad statistics as to the state of the economy. The bad news is yesterday’s unemployment figures. These revealed that unemployment rose by 281,000 over the three months to May. There are now 2.38 million unemployed, which is the highest l...

The Cranfield School of Management has identified six behaviours that successful owner-managers possess. Why not test yourself against their list of behaviours which are about: taking control, being confident, being distinctive, being strong making wise decisions being ready to take advant...

Today's British Chamber of Commerce figures suggest that British business is over the worst of the recession.  Let's hope they've got that right.The survey data from 5,600 companies shows progress in both the manufacturing and service sectors with most key indicators improving in the last ...

It's a question that seems to be concerning many business commentators and it's one we often debate with our own clients. In the legal profession we see many small, high street legal firms struggling as parts of the business are wiped out with the collapse of the housing market and the frailties of ...

Responsibility for fire, health and safety issues rests with the operator of the business. Since 1 October 2006 it has been necessary for all businesses to comply with the Regulatory Reform (Fire Safety) Order 2005. The Order applies to all non-domestic premises in England and Wales. If you are resp...

Another sign that the recession might have bottomed out is a recent survey by the Forum of Private Business. Their survey reports that confidence in the SME sector has shown a slight improvement: 26% of respondents said the viability of their business had improved in over the past month, double thos...

When can we expect a recovery? This must surely be the question all SMEs are asking themselves. Most have adjusted to the recession as best they can, costs have been cut, cash flow managed more effectively and surplus labour made redundant. It has been painful, profits have been slashed, if they exi...

According to a recent poll by SmallBusiness.co.uk, 80% of those polled said their banks have failed to offer support; 48% said their bank had no understanding at all; 28% said they had been supportive verbally but not in action; and 10% said that their overdrafts had been cancelled. On the positive ...

The latest figures from the British Retail Consortium (BRC) suggest things aren’t quite as bleak for retailers as the media have been suggesting. The Retail Sales Monitor January 2009, from the BRC and advisory services firm KPMG, shows values increased by 1.1% on a like-for-like basis when co...

There’s hardly a day goes by without a further announcement of solicitors being made redundant or being forced to accept a drop in salary. Those worst affected are the more senior solicitors, as solicitors’ firms push more trainees and newly-qualified lawyers forward to handle the day-to...

Not according to the Federation of Small Businesses (FSB) whose recent survey claims measures like the cut in VAT, pledges on payment practices and bank lending guarantees have done little to improve the situation facing small companies. Half of the 4,000 respondents in the FSB survey had experience...

Cousins Business Law has published a Guide to doing business in the UK.  The Guide covers: The issue of jurisdiction and the laws of England and Wales Business structure Trading laws and regulations Employment and staff issues Property Handling business disputes Although written for o...

Under the new Companies Act, Companies House are entitled to charge penalties for the late filing of Annual Accounts . These will come into force on 1st February 2009. Yesterday, they announced that new penalties will be as follows: For Private Companies (Ltd's):Less than 1 month late: £150Bet...

If the last 5 years are anything to go by, businesses will continue to face pressure from new rules and regulations, especially around employment policies and practice.  Let's just hope that some sense prevails, given the current challenges faced by all firms.In the meantime, this extract from ...

Last week, a laptop and 4 computer hard drives were stolen from the Bar Council’s offices in London. These contained sensitive data on all the barristers practising in England and Wales as well as details of around 1,500 complaints lodged against barristers. The data stolen included the names,...

The Solihull MBC Planning Sub-Committee today decided that it was “minded to approve” a 500 metre extension of the runway at Birmingham Airport. However, before full approval is to be given, Section 106 Agreements (undertakings given by the applicants) have to be agreed that will constra...

The latest Government figures on insolvency (published 7th November 2008) show an alarming increase in the number of business failures. There were 4,001 compulsory liquidations and creditors’ voluntary liquidations in the third quarter of 2008, an increase of 10.5% on last quarter and a 26.3% ...

Government plans to cut the cost of red tape must be welcomed by business owners, surely?The proposals are that budgetary ceilings are set on the amount of regulation that can be introduced by individual departments.Under the plans, a rolling budgetary limit will curtail the costs of new regulation ...

Here at Cousins Business Law, we are advising more and more directors of their responsibilities in times of financial trouble and we predict we will be advising many more in the months to come.Whilst I think that everyone agrees the world has never seen anything like the present credit crunch, there...

I was reading the results of a survey from the Coventry & Warwickshire Chamber of Commerce, which suggests that businesses in this part of the West Midlands are really starting to feel the effects of the current economic climate. 77% of those surveyed reported a marked difference in sales figure...

Yesterday marked a historic day in the civil courts. Civil court judges will no longer wear wigs. I must say, it has always appeared strange to me that we expected our judiciary to support headwear dating back some 300 years. Those in favour of wigs tended to argue that they helped judges command re...

The latest ICAEW UK Business Confidence Monitor for the West Midlands reinforces many of the messages that we read daily in the national press and confirms the commentators' predictions for the impact of the credit crunch on the ‘real economy’. What started as a Financial Service se...

It now seems accepted that Sharia Courts are legal alternatives to the traditional court system in the UK – as long as all parties agree. The UK courts have for a long time now been promoting ‘Alternative Dispute Resolution’ – whereby parties to a legal dispute are encouraged...