Is a limited company protected from divorce?
As a limited company has its own legal identity, the court cannot make orders directly against it. By way of example, if a limited company owns a house, the court could not order the company to transfer that house to the husband, even if the wife is the sole shareholder or wholly in control of the company. It is the company which owns the house, not the shareholder.
However this does not mean that a limited company is completely disregarded. If a party in a divorce is a shareholder of a limited company, it is likely the court will want to know how much the shares are worth which inevitably requires an assessment of the value of the company and its underlying assets and interests. The court could order that those shares are sold to realise their value. A court could order that there is a transfer of shares from one spouse to another, which frequently happens if both spouses are joint shareholders. Alternatively, the court may offset the value of a shareholding against other assets so the shareholder keeps the shares in full but their spouse keeps more of a different asset.
A company may also be seen as a source of liquidity if it holds excess cash. Whilst a court cannot order a company to pay a lump sum to somebody, it could make an order against a shareholder requiring them to make a cash payment to their spouse knowing full well that the only way to satisfy the payment is to extract cash from the company such as through declaring a dividend or taking a loan from the company.
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Increased hygiene measures should be introduced to limit the spread of infection. Increase the frequency of cleaning, particularly higher risk contact points such as door handles. Avoid the use and sharing of hardcopy in favour of electronic documents; avoid sharing of tools and work equipment; increase the availability of handwashing facilities and hand sanitisers; issue anti-bacterial wipes and tissues to staff, and remind everyone to maintain good personal hygiene practices, including regular hand washing. Prominent and repeat signage will be vital in reminding workers of these steps they can take to protect themselves.
PPE – e.g. disposable gloves and face masks – are not currently legally required in the UK, but especially where social distancing might not be possible, it may be necessary to make appropriate PPE available to staff. If so, you will need to make sure there is enough available train everyone so it used properly and provide for safe disposal of used items.
MOST IMPORTANTLY – communicate with your people; invite their input and suggestions and act on them. Communication and participation in the process of a safe return to work are going to be crucial to its’ success.
Monitor for illness: train managers how to spot the symptoms of COVID-19 and have a clear process if someone is potentially infected. Continue to remind staff to only come into work if they are well and not experiencing any symptoms. A number of businesses are planning on using testing and screening methods, such as temperature checks. Remember, these steps create data privacy considerations which you will need to consider.
Do not forget existing health and safety obligations, such as maintaining sufficient numbers of fire marshals and first aiders on-site. Employers should also be aware that the Health and Safety Executive must be notified under RIDDOR of any workplace incidents that lead to exposure to COVID-19 and any cases where there is “reasonable evidence” that it was caused by exposure in the workplace. Be aware that workers are being encouraged to report to HSE failures of their employers to keep them safe from the threat of the virus.
The current position is that the PSC is responsible for assessing whether IR35 applies. This current regime has been difficult to police by HMRC and HMRC considers there is widespread flouting of the rules by contractors.
From April 2021 the responsibility for assessing whether IR35 applies will shift to the end user/client (with the exception of ‘small’ companies) which will require an assessment to be carried out on a contract by contract basis. HMRC anticipates that this will be easier to monitor and that end user businesses will be more compliant.
The reformed regime will apply to payments made on or after 6 April 2021 for services carried out on or after this date.
On 30th April 2020, the CMA issued a guidance note setting out its views about how the law operates in relation to refunds.
Where a contract is not performed as agreed, the CMA considers that in most cases, consumer protection law will generally allow consumers to obtain a refund.
This includes the following situations:
- Where a business has cancelled a contract without providing any of the promised goods or services
- Where no service is provided by a business, for example because this is prevented by Government public health measures
- A consumer cancels, or is prevented from receiving any services, because Government public health measures mean they are not allowed to use the services.
In the CMA’s view, this will usually apply even where the consumer has paid what the business says is a non-refundable deposit or advance payment.
This positon reflects the CMA’s previous guidance which they had issued in relation to the requirement of fairness in consumer contracts under the Consumer Rights Act 2015, which was that a clause in a contract that gives a blanket entitlement to a trader to cancel a contract and retain deposits paid is likely to be unfair, and therefore unenforceable – it would be unfair to a consumer to lose their deposit if the contract is terminated without any fault on their part, and if they had received no benefit for the payments made.
The CMA’s latest guidance therefore confirms their view that the Covid-19 outbreak does not change the basic rights of the consumer, and that they should not have to pay for goods or services that they do not receive.
Hosted by Advanced Manufacturing Forum, Partner, Matt Cormack discussed in this webinar how to avoid risks associated with your customer and supply chain contracts during this challenging Covid-19 period.
The webinar covers common questions such as:
- Can force majeure excuse me or my suppliers from paying on time?
- What are the risks to my business if I can’t perform on time due to Covid-19?
- What will happen to my contracts if the Government takes steps to require me to close down my facility?
To watch the full recording, please click here. (To note the recording begins at 10 minutes)
If you have any follow up questions, please do not hesitate to contact one of our lawyers detailed below or use our ‘ask us a question‘ feature.
Yes, but only for work purposes and where it is unreasonable to do so from home. Work colleagues cannot meet to socialise.