Capital punishment for even the most heinous criminal offenses has long been abolished in the majority of western democracies with some significant exceptions such as the USA. In regard to personal debt however, the USA has a most benign set of laws dealing with indebtedness both personal and corporate. Contrasting very much in both of these matters is the Republic of Ireland. The death penalty is long eliminated in Ireland but the personal insolvency regime there has been explained by a great many august authorities as unrealistic, rarely used, very costly and exceedingly penal. Continue reading
Last month I described administration and how it affected Leeds United. In order to save the club from liquidation* the administrator propsed a company voluntary arrangement (CVA). Under the proposal, the club would be sold back to a consortium led by the majority shareholder Kent Bates, and the sale proceeds (after deduction of the costs of administration) would be distributed to unsecured creditors. Continue reading
Despite the record level of insolvencies in the UK, the Bank of England again has raised interest rates taking them up to 5.5% which is a six year high. It is expected that at least one more rise will take place this year as the bank attempts to keep a tight control on inflation. These increases are hurting businesses especially in the construction industry as the property market slows and first time buyers in particular feel the squeeze. Continue reading
You are probably aware the Current Construction Industry Scheme (CIS) will be replaced by a new system from April 6th 2007. There will no longer be any CIS registration cards, certificates or vouchers.
Instead contractors will now have to “verify” new sub-contractors directly with HM Revenue and Customs (HMRC). In addition, each main contractor must decide whether anyone being hired is either self-employed or an employee and must sign a declaration to that effect.