Clarke and Son News

The rented sector is likely to become an even more significant part of the local and national economy over the short and possibly medium term. In January 2008, the Government commissioned the University of York to carry out a review of the private rented sector.

The University of York has now published its recommendations on ways to improve the private rented sector. Recommendations include:

• Introducing a licensing system for landlords.
• Mandatory regulation for letting agencies.
• Increasing protection for vulnerable tenants and good landlords.
• Introducing a new independent complaints and redress procedure.
• Introducing tax changes to encourage landlords to expand their portfolio.
• Encouraging the private rented sector to assist households on lower incomes.
• Supporting landlords who house vulnerable people.
• Educating local authorities to support good landlords, tackling poorly performing landlords and promoting tenants’ rights.

The Government has stated that it will carefully consider the recommendations before deciding on what steps to take next and their findings will be published here over the coming weeks.

Approximately one million workers will have benefited now that the national minimum wage (NMW) has increased to £5.73 per hour from Wednesday, 1 October, the TUC says.

Two-thirds of the beneficiaries are women, reinforcing the NMW’s positive role in narrowing the gender pay gap.

The increase in the NMW will also save the taxpayer an extra £245 million in reduced payments of in-work benefits. This week’s 3.8 per cent increase in the NMW (from £5.52 to £5.73) will be the ninth increase since it was introduced in April 1998.

Nicholas Bowers, Partner and Head of Employment Issues and Litigation says of the change, “At Clarke & Son, we welcome this move towards wage equality as it improves the financial position of lower-paid workers.”

For more information on Employment Issues contact Nicholas Bowers direct or telephone: 01256 320 555.

October 1st saw a raft of new laws that came into force across the UK. The following are a selection of the new laws concerning changes of regimes for running a business.

1. Minimum age for appointment as director

Section 157 of The Companies Act

With just a few exceptions, all directorships held by a person who is under the age of 16 will automatically end on 1st October 2008. The need to inform the Registrar of Companies will no longer be required although company records should be amended.

If, as a result of the change, the company is left without a suitable director, then at least one new director will need to be appointed to address the position.

2. Limited companies as sole directors

Section 155 of The Companies Act

From October 1st, limited companies are required to have at least one human director. This new rule is designed to restrict a limited company from acting as the sole director for another limited company.

There is, however, a grace period (up to 1st October, 2010) for companies who had a sole corporate director in place on 8th November 2006 to comply.

3. Financial assistance for private companies

Chapter 2 of the Companies Act

From October 1st, privately owned companies can use financial assistance in order to acquire their own shares. This process effectively removes the need for a private company to undertake the ‘whitewash’ procedure (which required a directors’ statutory declaration of solvency, an auditors’ report and a special resolution of the company). However, where the private company has a public company subsidiary, the public company will not be afforded the benefit of this rule.

4. Disclosure in annual returns for private and non-traded public companies

The Companies Act 1985 (Annual Return) and Companies (Principal Business Activities) (Amendment) Regulations 2008

Businesses whose annual returns have a ‘made up date’ on or after 1st October 2008 are no longer required to disclose the addresses of the shareholders of private and non-traded public companies.

Importantly, any company including the address of shareholders where this isn’t necessary will have its annual return rejected by Companies House. The addresses of shareholders in publicly-traded companies who hold at least 5% of any share class will, however, still need to be provided.

5. Directors’ duties: duty to avoid conflicts of interest

Section 175 of the Companies Act

With effect from October 1st, company directors will be under an express duty to avoid conflicts of interest. This new rule will let companies put provisions into their constitutions to allow for the prior approval of conflicts (or potential conflicts). If a director complies with any such provisions then they will be free themselves of any liability for breach of the duty.

Additionally, the duty extends to not accepting benefits from third parties where any possibility of a conflict of interest may arise.

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If you are a business owner looking for highly qualified, professional advice regarding business law and how may affect you, please contact Clarke and Son LLP or telephone 01256 320 555.

Basingstoke solicitors, Clarke & Son LLP are once again participating in the annual Will Aid scheme which enables clients to make a Will at a much reduced fee while also contributing to charity.

Will Aid is an annual Will-making campaign run collaboratively by leading charities made possible through the nationwide support of the legal profession. Since 1988 nearly £7million has been donated through Will Aid. This money has left its mark in tackling the injustices of poverty and deprivation.

For a suggested donation of £75 for a single Will, £110 for a pair of Wills or £40 for a codicil to an existing Will, potential Clarke & Son clients will be contributing to 9 National and International charities.

Roy Young, Head of  the Clarke & Son Wills & Probate department, comments on the scheme, “I’m sure everyone knows that making a Will is a simple yet important way to protect the future of your loved ones.  Remember that if your estate, including your home, is worth more than £125,000 then the money will not automatically go to your spouse, and if you are not married your partner may get nothing. This scheme is an excellent way of encouraging people to make a Will, and while doing so they can also contribute to well-deserving causes.”

Clients wishing to participate in the scheme must make an appointment with Roy during November.

For more information on the Will Aid scheme contact Roy Young from the Wills & Probate department at Clarke & Son LLP or telephone 01256 320 555.