Private and Family Businesses
Important new reporting requirements arise for some farmers using partnership and corporate vehicles following recent changes to the People with Significant Control regime.
Companies House has announced that the regime will be extended to a range of further entities and that changes will be made to the reporting requirements surrounding how and when updates are to be provided to Companies House.
On 6th April 2016, changes to the Companies Act 2006 will introduce new rules requiring unlisted UK companies to take reasonable steps to identify people who have significant control over them. Details of these people (PSCs) will need to be recorded in a new statutory register (which will be known as a PSC register).
BPR is potentially an extremely valuable relief. It is important to keep matters under regular review, particularly as the balance between wholly or mainly “trading” or wholly or mainly “investing” is always a moving target. Remember that it is an all or nothing test – if you fall the wrong side of the wholly or mainly test the entire value will be exposed to, rather than relieved from inheritance tax.
Considerations include disclosure requirements, marketing (PLCs), control/management structure, changes in participation, risk sharing and financing. Please contact Turcan Connell’s Business Law team for more information on business structures
The process of buying or selling business can be particularly time consuming. The process is demanding and usually, for a seller, the biggest challenge will be running the business at the same time as participating in the sales process while not allowing news of the impending sale to leak out to staff and customers of the business.
This note applies to all the directors of a company. "Director" is defined to include any person occupying the position of director, by whatever name called (section 250 Companies Act 2006 (“CA 2006”)), which will include de facto directors.
The Companies Act 2006 (Act) does not define the term "director", stating only that in companies legislation "director" includes any person occupying the position of director, by whatever name called.
Family charters (sometimes also known as family constitutions, agenda or protocols) are statements of intent or agreements entered into by family members in relation to a family business.
A Scots law shares pledge requires that the pledged shares are legally transferred to the lender (or more often a nominee company of the lender), with a stock transfer form being signed, share certificate issued and the lender or their nominee company being entered in the company’s Register of Members (being the ultimate legal test of share ownership).
Please contact Turcan Connell’s Business Law team for more information on terms of business.
The importance of family businesses to the Scottish and indeed the wider UK economy should not be underestimated. The statistics shown in this note illustrate quite how significant an impact family businesses have across the UK.