Make sure your cookies don't break the law

Firms that use websites to promote their business are being urged not to fall foul of new EU legislation relating to consumer policy.

Nottingham lawyers Andersons Solicitors say new rules mean that firms will soon have to get permission before they can store files on a consumer's computer.

The new law is designed to control the use of small files such as cookies.

These can be installed on a customer's computer to store information about their interests and preferences based on the products they've viewed and purchased online in the past.

It means that when they revisit the website that created the cookie, they can be shown products and services specifically tailored to their interests. The cookies can also store sensitive information such as a person's payment details.

Cookies and similar are used by most businesses and organisations in the UK.

Peter Sutherland of Andersons Solicitors in Nottingham, said that while cookies can make online purchasing much easier, they also raise issues of privacy.

"On 25th May this year, an amendment to the EU's Privacy and Electronic Communications Directive will require businesses to obtain consent from consumers before they can use cookies and similar files.

"It will give consumers more control over what kind of information they will allow companies to store.

"The Information Commissioner is liaising with businesses to see how the changes can be implemented but firms need to be aware that they may have to change the way they do things to avoid breaking the law in the future."

For more information please contact Peter Sutherland on 0115 988 6714 or email psutherland@andersonssolicitors.co.uk.

Spread Christmas cheer but avoid costly claims

The problem of compensation claims arising out of office Christmas parties are now legendary and yet employers continue to get caught out every year. Laura Forster looks at how to ensure everyone has a good time without landing the firm in trouble.

In spite of the recession - maybe even because of it - many companies are pressing ahead with their Christmas Party as usual this year.

Hopefully most parties will pass without any incidents but some could lead to expensive claims so it is sensible for employers to take a few precautions.

Discrimination and harassment claims arising out of unwanted remarks are an obvious risk. With the alcohol flowing at an office party it only takes one member of staff to go too far and there could be a problem. To make matters worse, the offensive remarks don't even have to be made at the official company function. Something said at the pre-party drinks in the local pub could also land the employer in trouble as discrimination laws could still apply.

The answer is for firms to make sure their anti-discrimination policies are up to date and that every employee knows about them. Getting staff to read and sign such documents would also help when defending any future tribunal hearing.

Providing food, soft drinks and keeping a limit on the free bar will also show that a firm is adopting a responsible approach.

Remember also that third party harassment could now be an issues. For example, you could be held responsible if your employees are pestered by clients or suppliers that you invite to the party. This could be made worse if incidents have happened in the past and your firm hasn't done enough to deal with them.

Transport is another issue that still catches people out. You have a duty of care to your employees and sometimes you even have to save them from themselves. This involves such things as trying to prevent them driving home after they've drunk too much. You obviously can't order people not to drive but you need to show you acted responsibly. Handing out phone numbers of taxi firms or ending the party while public transport is still running would help your position enormously if a case ever ended up in court or tribunal.

The much maligned health and safety laws also need to be taken into account. A little forethought can prevent a lot of problems. For example, don't ask staff to put up Christmas decorations and then leave them to spin precariously on office swivel chairs. Make sure that decorations don't cover emergency exit signs and are not placed too close to heat sources.

It's hard for the boss to win at this time of the year. If they don't throw a party they can be branded a scrooge. If they do then they run the risk of getting into trouble if things get put of hand.

Each year the law seems to get a little more complicated and the employer's duty of care seems to increase with it/ It's essential to be pro-active and get the right policies in place. Otherwise the Christmas party could produce a painful, expensive hangover.

For more information please contact Laura Forster on 0115 947 0641 or email lforster@andersonssolicitors.co.uk.

New recuit at Andersonws Solicitors

Nottingham law firm Andersons Solicitors bolsters its Dispute Resolution Department with the arrival of Alex Brooke-Smith. Alex joins Andersons Solicitors from Bakewells of Derby where he qualified as a Solicitor in 2009.

Alex offers pragmatic and practical advice to commercial and civil clients on all areas of dispute resolution with a particular interest in Landlord and Tenant and Insolvency.

Commenting about his appointment Alex says: "It's a fantastic opportunity joining Andersons Solicitors' Dispute Resolution team. The team take a sensible and commercial approach to disputes which fits my style perfectly. There are some tops lawyers here and I hope I can add to the firms' excellent reputation."

Andrew Scott, Head of Dispute Resolution comments: "We are thrilled to have Alex on board. He is a great addition to the team and will ensure that the high level of service that is synonymous with Andersons Solicitors continues."

For more information please contact Carly Williams on 0115 947 0641.

New Partner at Andersons Solicitors

Nottingham law firm Andersons Solicitors have promoted employment law expert Anthony Kay to Partner.

Anthony has been at Andersons Solicitors for over 5 years advising a wide range of clients from local SMEs to National PLCs on all aspects of employment law.

Andrew Kelly, Senior Partner comments “We are delighted to welcome Anthony to the partnership. His experience, enthusiasm and dedication will be an integral part of the firm’s growth.”

Anthony Kay comments on his appointment “I am delighted to accept the offer of partnership and look forward to contributing towards the continued success of the firm.”

Anthony Kay is a Partner in the Employment Department at Andersons Solicitors he can be contacted on 0115 988 6739 or by emailing: akay@andersonssolicitors.co.uk

Notes to editor:
Andersons Solicitors is an established, Nottingham-based law firm offering a variety of legal services to businesses and individuals. Services include:

· Business start-ups
· Commercial Contracts
· Commercial Property
· Debt Recovery
· Dispute Resolution
· Employment Law – Businesses
· Employment Law - Individuals
· Family
· Intellectual Property
· Investment Property
· Personal Injury
· Retirement Planning
· Residential Property
· Succession Planning
· Wills and probate

Andersons Solicitors produce 3 monthly newsletters (Employment Law, Business Law & Private Law) if you would like to subscribe to any of these please email: cwilliams@andersonssolicitors.co.uk

Leading law firm awarded membership of Qualitysolicitors.com

Leading local firm, Andersons Solicitors, has been awarded membership of an exclusive nationwide alliance of high quality solicitor firms, QualitySolicitors.com.

QualitySolicitors.com is the UK’s first ever truly national legal brand and promotes the use of real solicitor firms over “call-centre law” soon to be provided by supermarkets and banks. It has initially selected just one hundred of the best solicitor firms nationwide to form the founder membership and has chosen Andersons Solicitors as one of those recognised firms.

QualitySolicitors.com will match users of its free service to the best high quality solicitor for their particular issue. The QualitySolicitors.com innovative website, www.QualitySolicitors.com aims to address all possible legal needs by including extensive legal resources, DIY documents, online legal advice as well as referring users to the telephone legal advice service from consumer organisation, “Which?” Members of the public wishing to use a solicitor will be directed by QualitySolicitors.com’s legally trained case handlers to the best matching solicitor from within the organisation’s members firms.

Andersons Solicitor’s Managing Partner Andrew Kelly, said, “we are delighted that our high quality of service has been recognised by being accepted into this exclusive organisation. We have always prided ourselves on putting our clients first and this is recognition of that”.

QualitySolicitors.com Chief Executive and Barrister, Craig Holt, told us, “I am extremely pleased to welcome Andersons Solicitors into our alliance. For too long members of the public have had to face a lottery when choosing a solicitor. All our member firms are specifically selected for their exceptional quality and are then subject to continual public feedback, with any firm not meeting our high standards forced to leave the organisation”.

QualitySolicitors.com can be found at www.qualitysolicitors.com. Chief Executive, Craig Holt, can be contacted on 0845 520 40 88.

Andrew Kelly is Managing Partner at Andersons Solicitors he can be contacted on 0115 988 6712 or by emailing: akelly@andersonssolicitors.co.uk

Andersons Solicitors supports The Stroke Association

Nottingham law firm Andersons Solicitors is proud to support the Nottingham branch of The Stroke Association in its fundraising activities throughout 2009.

Andersons Solicitors Managing Partner comments “We regularly raise money for charity but this is the first time the firm has picked a “charity of the year”. I am pleased it is The Stroke Association as it is a charity which is often overlooked in charitable giving. For example: for every £50 spent on cancer only £1 is spent on stroke research. The staff are now busy planning numerous events to run throughout 2009”.

Chris Radmall, Regional Fundraising Manager for The Stroke Association said “I am delighted that Andersons Solicitors have chosen The Stroke Association as its first charity of the year. Each year 150,000 people in the UK have a stroke and all funds raised will help The Stroke Association work towards a world where there are fewer strokes and those affected by stroke get the help and support they need.”

For more information please contact either Carly Williams (cwilliams@andersonssolicitors.co.uk) or Lisa McKay (lmckay@andersonssolicitors.co.uk).

How to tackle ‘Coke Cola’ style copycat branding

When a firm thinks it can get away with calling itself Coke Cola Ltd then no one is safe from the copycat branders. Thankfully, the law has provided a new streamlined way for businesses to protect their trademarks, as Faizal Essat explains.

It may seem surprising that someone thought they could register a name so similar to one of the world’s leading brands and not feel the full force of the law coming down on them.

Until recently, however, Coca Cola might have found it difficult to deal with the problem because although a company could take action if a firm tried to use the same name, the scope for objecting to names that were merely similar was much more limited.

That has now changed because of provisions in the Companies Act 2006 which came into effect last October. Now companies can quite easily take action against opportunistic registrations of names which are the same or similar to their own.

Such opportunism includes cases where someone registers variations of the name of a well-known company in order to get that company to buy the names back. Or it could be that someone hears of a proposed merger between two firms and then registers several variations of the kind of name the new firm is likely to adopt.

The Company Names Tribunal was set up to adjudicate on such matters and the Coke Cola affair was its first case.

Coca Cola argued that the registration of Coke Cola Ltd was opportunistic and designed to take advantage of its famous brand name. The Tribunal moved quickly and ordered Coke Cola Ltd to change its name within one month. If it failed to do so then Tribunal would choose a name for it.

It was also ordered to pay Coca Cola’s application fee of £400 and £300 towards its costs.

The tribunal only deals with opportunistic registrations and there will still be times when companies may need to pursue infringements through the courts as before.

However, this new system provides companies with a quick and relatively cheap way to protect their brand. The application fee is only £400 and there are short time limits for the exchange of evidence so a case is unlikely to drag on incurring prohibitive costs.

Faizal Essat is a Legal Executive Advocate at Andersons Solicitors. He can be contacted on 0115 988 6707 or by emailing fessat@andersonssolicitors.co.uk.

Battling to save a failing business can put directors at risk

Company directors have been warned against soldiering on for too long trying to rescue a business which has no chance of survival as the recession deepens.

They could be accused of wrongful trading and run the risk of financial ruin as they become liable for the debts of their business – even if it is a limited liability company.

Peter Sutherland, of Andersons Solicitors in Nottingham says it is only natural that businesses want to ride out the current storm.

“The danger is that some directors fail to recognise or refuse to accept that their business has no chance of avoiding insolvency. They may have an emotional attachment to a firm they have set up themselves and feel a tremendous loyalty to their staff. Or they may be trying to avoid having to pay back company loans which they have personally guaranteed.

“This can carry on regardless, hoping against hope that things will improve even though that can sometimes just makes things worse.”

Peter says that as soon as a company becomes insolvent, directors have a legal duty to protect the interests of creditors. “When formal insolvency procedures get underway, the behaviour of directors over the previous few years could come under investigation.

“They could become liable for wrongful trading if it’s found that they continued entering into contracts or accepting credit after they knew or should have known there was no reasonable chance of avoiding insolvent liquidation.

“The court could then order them to use their personal assets to help settle the company’s debts.

“Directors of insolvent companies are also obliged to treat all creditors equally so they must not give preferential treatment to friends or a company that is threatening to sue them.”

Peter says the problem for many directors is identifying the point at which they become insolvent so they should seek professional help as soon as problems start to emerge.

“Persistence is a good quality in business but directors must also recognise when the cause may be lost and then make sure they meet their obligations.”

Peter Sutherland is a Partner in the Business law Department at Andersons Solicitors. He can be contacted on 0115 988 6714 or by emailing psutherland@andersonssolicitors.co.uk

Handing over your business can involve head and heart

Business owners dreaming of giving it all up and retiring to a life of leisure have several options open to them when it comes to handing on control of their company.

Which choices they make will depend on several factors, some of them financial but many of them are more to do with emotion and loyalty.

Those who simply want to extract the best price possible and then move on may find that private equity firms have a lot to offer. These firms have received a lot of criticism recently, mainly to do with how much tax their directors pay, but they do have a role to play.

They can provide sellers with a simple way out at an attractive price with money up front. That can be very appealing to someone who wants to bow out quickly with a bulging bank balance to finance a comfortable well-earned retirement. It’s particularly appealing when compared to the possible alternative of selling to managers or partners within the existing company structure who may have to buy in instalments over several years. No one wants to wait for their money if they can help it.

The temptation to cut and run is high but that’s when emotional ties kick in. Most businessmen become very loyal to their staff and worry about what will happen when people who’ve worked hard for the firm for several years suddenly find themselves at the mercy of hard-nosed outside owners.

It’s quite possible that a private equity firm will want to put in new management and perhaps streamline the operation leading to redundancies. Such prospects can make the seller feel disloyal. There may also be concerns that the whole nature of the company will change. That too can worry entrepreneurs who’ve spent all their lives building the business up and still feel a strong attachment to it.

These feelings can be magnified for directors running a family business. It means many people prefer to ignore the higher price offered by private equity firms and sell instead to the next generation, whether family members or long term colleagues.

In these cases, the best way to ensure a smooth succession is to start planning as early as possible, preferably several years ahead of the target retirement date.

This is particularly important for small to medium size firms where the departure of one key person can have a major impact. Hold meetings with those who will be left running the company so you can agree an exit strategy.

If you own a large share of the business, the remaining partners or directors may need to raise money to buy you out. Or if the firm is very successful, some of its profits could be used to raise part of the necessary finance. This approach would need Inland Revenue clearance but is worth exploring.
You may choose to sell your shares back over several years so the firm’s finances aren’t put under too much pressure all at once. In that case, you may need to change your will so the arrangement can continue should you die before the sales are completed. There could be tax implications whichever system you choose for withdrawing capital from the firm so professional advice should be sought.

If you own the business premises, you will need to decide whether to sell or lease them back to the firm. This could be influenced by how much capital you need to raise or whether you would be content with a monthly rent.

Throughout the succession planning it’s important to get advice from your accountant, lawyer and possibly your bank manager. They will have helpful suggestions and can ensure that the agreement is fair to everyone.

This is particularly important if you are passing the business on to family members because emotions can easily get in the way. Sons and daughters may feel guilty that they are demanding too good a deal from their parents, while parents may feel they are taking too much out of the business making it difficult for their children to succeed in the future. Independent opinions from lawyers and accountants can help guide and reassure both sides.

Once an agreement has been reached it’s important to get it all written down properly so it’s legal and everyone knows where they stand.

This will enable you to plan a proper exit strategy that will allow you to bow out gracefully without affecting the smooth running of the business.

Peter Sutherland is a Partner at Andersons Solicitors and can be contacted on 0115 988 6714 or by emailing psutherland@andersonssolicitors.co.uk.