Monthly Archives: November 2022

What is Equity Release, and how does it work?

Posted on 17/11/2022 by freestyle

Equity release is a popular option for the over 55s to release equity from their home. There are various reasons people may wish to unlock cash by taking out an equity release such as:  Equity release is a financial product where a property owner can keep the use of a property which has capital value (i.e. there’s equity in it), whilst obtaining a lump sum or a steady stream of income from a lender. The property is used as security, with the loan to be repaid on death of the borrower for example. Independent legal advice is a requirement of the equity release process, and our role as lawyers is to ensure that you understand the long-term nature of an equity release contract and proceed with full knowledge of the risks and rewards, as well as the legal obligations of the … Continue reading →

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Insolvency and directors duties: an important update

Posted on 16/11/2022 by freestyle

As most company directors should know, they are responsible for the management of their companies. Directors must act honestly and promote the success of the business for the benefit of the shareholders. In addition, they also have responsibilities to the company’s employees, its trading partners, and the state. Directors have wide powers to help you promote the company. However, they can come up against serious penalties if they abuse those powers or use them irresponsibly. The Supreme Court has recently handed down judgment in the case of BTI 2014 LLC v Sequana SA and ors [2022] UKSC 25. It is an important decision which clarifies the duties a director owes to company creditors, and at what point in time those duties are triggered. It will also assist insolvency practitioners (IPs) in deciding if insolvent company directors have breached their duties, and whether claims … Continue reading →

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Succession planning for business owners

Posted on 15/11/2022 by freestyle

If you were to believe the hit TV series Succession, you might expect succession planning to be a process fraught with tension, backstabbing and family feuds. Thankfully, it doesn’t have to be that dramatic. Succession planning for business owners shouldn’t be overlooked, and we’ll explain why here. In reality, succession planning is a great way to prepare your business for the future, ensure long-term stability, and enable a tax-efficient handover of the business when the time comes. What is succession planning? Succession planning is the process of mapping out the transition of ownership and management roles, should you decide to step away from your business. Whilst you may not have immediate plans to hand over the reins, it’s still important to be prepared for whatever the future holds. Whilst a succession plan may need to be enacted suddenly, in most … Continue reading →

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Should I liquidate my company?

Posted on 14/11/2022 by freestyle

With the UK on the brink of recession and having just emerged from a global pandemic, it’s a tough time for businesses. As the economy struggles, many owners face a difficult question: should I liquidate my company? As an owner of a struggling business, knowing when it’s time to call it quits is extremely hard. You have to weigh up the hopes and dreams you had for your business against your current financial situation. If you’re struggling with this tough choice, we’ve put together a list of questions to help you decide what’s right for you. Guide download: Should I Iiquidate my company? Making big decisions about the future of your business can be extremely hard. The best thing you can do is speak to an expert. At Scott Bailey, we have a wealth of experience helping business owners navigate … Continue reading →

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