Profits made by a limited company are distributed to shareholders through the declaration of dividends. Quite often, for example in the case of SME businesses, the directors and shareholders of the company are one and the same. In such businesses, directors might take a minimum salary and pay the rest of their remuneration by way of dividend. For some time, this has been a tax-efficient means for directors to be remunerated.
However, before a company is able to pay a dividend, two main criteria must be met:
Greatest focus will be on retail and outsourcing sectors.
Judge decides whether an insurance company proposing a scheme of arrangement should convene a single class meeting of creditors
Are you a company director? If so, are you fully aware of your responsibilities and duties to your company? It is common for directors to be completely uninformed of the full extent of their duties, sometimes holding the belief that they can essentially do what they like – particularly if they are also a sole shareholder, which is often the case with SMEs.
What are directors’ duties?
Golden Rule 1: comply with the 7 general duties in the Companies Act 2006 (“the Act”)
In your capacity as a director you need to individually and personally comply with the seven codified statutory duties as a starting point.
The benefits of being a director of a limited company are many. Not necessarily because of the tax benefits but, rather, the personal protection given to directors by the corporate veil surrounding limited companies.
That corporate veil means that directors’ liabilities for the debts of the company are limited to the extent of their shareholding (maybe £1) in the UK this concept (outside insolvency) is sacrosanct and protected by the Courts.
2018 has been one tough year on the High Street...
Retail, as a sector, has long been under pressure from increased competition from online retailers, which has resulted in reduced footfall on the High Street, affecting many companies, including many well-known names.
The Financial Conduct Authority (FCA) has been conducting a review of the operation of the Financial Services Compensation Scheme (FSCS), seeking views as to how to reduce the number and value of claims falling to the FSCS and assessing how the scheme is funded, including the impact of professional indemnity insurance (PII).
A summary of recent developments in insurance, reinsurance and litigation law.
Engelhart CTP v Lloyd's Syndicate 1221: Court holds that all risks cargo policy did not cover fraudulent documents for a non-existent cargo
On occasion, parties engaged in court proceedings will consider procedural tactics with the ultimate intention of exerting such pressure on their adversaries that their weakened position, or even inability to pursue the proceedings, will work to their advantage. Such a situation arose in (1) Deleclass Shipping Co. Ltd (2) MWI Shipping Services Ltd v Ingosstrakh Insurance Co. Ltd (2018) where the defendant's application for security for costs became very problematic for the claimants.