WORLDWIDE LAW REVIEW
FEBRUARY 2017
Raising the Bar We speak to John Wilkinson, currently of Counsel at Fulton Vittoria, LLP. He gives us an insight into his company and what it takes to be a leading full-time arbitrator and mediator.
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Plus all the Latest News
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Welcome to the second edition of the Worldwide Law Review, which continues to provide the most up to date news, comment and industry insight on the market. We raise the bar, with a special article on the fascinating work of John Wilkinson, who is currently Of Counsel at Fulton Vittoria, LLP and is a full-time arbitrator and mediator. For 25 years, he was a trial attorney, litigator and partner at Donovan Leisure Newton & Irvine, during which he represented clients in numerous arbitrations, mediations and trials of complex corporate disputes. Fresh off an historic presidential election that has fuelled increased political activism on both sides of the aisle, a new Kaplan Test Prep survey shows a jump in the percentage of pre-law students interested in politics
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News
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Raising the Bar
12. The $84.31 Billion Drone 14. 80% of IT and Security Professionals Admit Company is Using Antiquated Collaboration Tools 16. Are You Aware of Your Duties as a Manager or Director? 20. Justice Secretary Elizabeth Truss unveils landmark Prisons and Courts Bill 24. Motor Insurance Premiums Reach Highest Recorded Levels 27. Search Engines and Creative Industries Sign Anti-Piracy Agreement 28. The Effects of Divorce on Business
In other news, Good2bSocial, the premier digital marketing agency for lawyers, law firms and companies in the legal industry, recently announced the launch of The Legal Writers Bureau, a new venture to help legal businesses produce stronger and more valuable content for their clients. I hope you enjoy reading the varied and engaging content that this issue has to offer, as we continuing exciting journey.
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16 Are You Aware of Your Duties as a Manager or Director?
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Taxi Drivers Reminded of Their Legal Requirement to Carry Assistance Dogs Northern Ireland’s Department for Infrastructure has reminded taxi drivers of the legal requirement to carry assistance dogs when required by passengers with disabilities. It is currently an offence under Section 37 of the Disability Discrimination Act for a taxi driver to refuse to carry an assistance dog or to make any additional charges for doing so, unless they display an exemption certificate.
Taxi drivers with a genuine medical reason for not carrying assistance dogs must apply to the Department for an exemption certificate and display it on the taxi. Taxi drivers who are successfully prosecuted for failing to adhere to the requirements of the legislation face a fine of up to ÂŁ1000.
The Department is working closely with Guide Dogs NI to ensure that people who use assistance dogs are fully aware of their rights so that action can be taken if breaches occur.
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Further advice and guidance for guide dog owners and taxi drivers is available on Guide Dogs UK website - https://www.guidedogs. org.uk/supportus/campaigns/ access-all-areas/resources#. WJ2Ql1JDQdU
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Good2bSocial Launches the Legal Writers Bureau Good2bSocial, the premier digital marketing agency for lawyers, law firms and companies in the legal industry, recently announced the launch of The Legal Writers Bureau, a new venture to help legal businesses produce stronger and more valuable content for their clients. The Legal Writers Bureau gives law firms and legal companies access to an elite team of award-winning writers and editors who can assist them with an array of content options. The bureau is comprised of top journalists who have written for and edited some of the best-known and well-respected publications in the legal industry, including The American Lawyer, The National Law Journal, The New York Law Journal, Corporate Counsel, Law Technology News, and Law.com, among others. “Through the Legal Writers Bureau, individual attorneys and law firms can work with experienced writers and editors to maximize the impact of their written content. This kind of individualized attention from veteran journalists has not been available before,” said Kris Fischer, a member of the Legal Writers Bureau and the former editor in chief of the New York Law Journal.
leadership positions by helping them produce content that engages clients, prospects, and influencers and provides a strong return on their marketing investment. “The team we have assembled has decades of combined experience cutting through the noise of the internet to engage readers,” said David L. Brown, Good2bSocial’s chief content officer. “Our goal is to help our clients find unique ways to tell their stories and to consult with them on strategies to improve their content efforts,” said Brown, who is the former editor in chief of ALM Media, The National Law Journal, and Legal Times.
The bureau will write short- and long-form articles, blog posts, client alerts, thought leadership pieces, white papers, e-books, and marketing copy. Editors and writers will also help create brochures, annual reports, awards submissions, website and social media pages, biographies and profiles. And the team will provide content strategy and consulting, media relations, and editorial coaching services.
“We are truly excited to be able to offer lawyers, law firms and companies in the legal market access to a team of award-winning legal journalists and editors to help provide content and other related editorial services,” said Kevin Vermeulen, Good2bSocial’s chief operating officer. For more information, and to learn how The Legal Writers Bureau can help your firm or company, contact Kevin Vermeulen at +1 212 634 7657, ext. 701 or at kevin@ good2bsocial.com
“I’m thrilled to be a part of this new enterprise,” said Anthony Paonita, a Legal Writers Bureau member and the former editor in chief of Corporate Counsel magazine. “Together with my long-time colleagues, we’re providing the kind of savvy, incisive writing that the legal profession needs right now.” The new venture will allow firms and companies to enhance their thought
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BonelliErede Advises Trenitalia on Completion of NXET Acquisition BonelliErede advised Trenitalia UK on the completion of the agreement with National Express Group PLC for the acquisition by Trenitalia of all shares of the company NXET (National Express Essex Thameside), which manages the C2C (City to Coast) franchise operating service between London and Shoesburyness, in the South Essex region. The closing of the acquisition was conditional upon final consent from the UK Department for Transport. The BonelliErede’s team advising Trenitalia UK was led by Massimiliano Danusso, managing partner of the London office, and comprised of counsel
Helen Roberts and senior counsel Gianpaolo Garofalo. Partner Claudio Tesauro and managing associate Leonardo Armati assisted the client on competition law matters. BonelliErede’s team acted in synergy with a team of the UK-based law firm Stephenson Harwood led by rail partner Tammy Samuel.
Ashurst LLP advised National Express Group and the UK Department for Transport was advised by Eversheds Sutherland. BonelliErede is the market leader for legal services in Italy, covering all areas of business and corporate criminal law. Thanks to its offices in Europe and Africa and to the partnerships with independent law firms around the world, BonelliErede is also a true international player.
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By combining the skills of its professionals, the firm also offers support through specialised working groups organised by sector and practice: the focus teams. The focus teams are organised by sector and practice area and pool their individual legal expertise and their in-depth sector knowledge to offer clients assistance with all aspects of their businesses.
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Aspiring Lawyers’ Interest in Running for Political Office Surges to 53% from Just 38% in 2012 Fresh off an historic presidential election that has fuelled increased political activism on both sides of the aisle, a new Kaplan Test Prep survey shows a jump in the percentage of pre-law students interested in politics*
Over half (53%) of the over 500 students surveyed say they would consider running for political office, up from 38% in 2012, the last time Kaplan surveyed on this topic. This 53% nearly ties the all-time high of 54% who said they would consider running for office when Kaplan first surveyed students shortly after President Obama was elected in 2008. Approximately 35% of all members of Congress (both in the House of Representatives and Senate) are lawyers, the largest identified profession in the current Congress, though markedly down from a post-World War II high of 59% in 1965. Additionally, about half of all current U.S. governors graduated law school. Despite many pre-law students’ passion for politics, many are apprehensive about putting their beliefs into words in the admissions process. When asked, “In general,
do you think it’s better for applicants to avoid discussing their political beliefs in their law school application personal statement?”, nearly half (46%) say yes; 16% say no; 29% say it depends; and the remaining 10% don’t know. But a separate Kaplan survey of law schools finds that admissions officers don’t necessarily think it’s a bad idea for applicants to discuss their political beliefs**. When asked the same question, 42% disagreed with the statement “it would be better for applicants to not discuss their political beliefs in their personal statement.” Of the remaining respondents, 28% agreed that politics should be avoided in law school application personal statements; 26% say it depends; and 4% don’t know.
believe,” said Jeff Thomas, executive director of pre-law programs, Kaplan Test Prep. “When it comes to expressing political beliefs in your law school personal statement, we advise applicants to do it only when you can do a good job of weaving together your personal narrative and career goals. For instance, if you want to go into public interest law, by all means, talk about your college internship in the governor’s office or your canvassing job for an advocacy group. But just to spout your political opinions with no larger goal may alienate admissions officers who don’t agree with you or who think you didn’t use your personal
statement wisely. It can show poor judgement.” * Kaplan Test Prep e-surveyed 514 of its LSAT® students between December 2016 and February 2017. ** For the 2016 Kaplan Test Prep survey, 98 of the 205 American Bar Association-accredited law schools were polled by telephone between August and September 2016. Included among the 98 are 28 of the top 50 law schools, as ranked by U.S. News & World Report. www.kaptest.com
“Law school has long been a bullpen of aspiring politicians, and we think the recent election showed many pre-law students of all political persuasions how important it is stay involved and stand up for what you
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Raising the Bar
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Raising the Bar John Wilkinson was for 25 years a trial attorney, litigator and partner at Donovan Leisure Newton & Irvine, during which he represented clients in numerous arbitrations, mediations and trials of complex corporate disputes. For most of the same period, he was also in charge of Donovan Leisure’s public service (pro bono) program. John is currently Of Counsel at Fulton Vittoria, LLP and is a full-time arbitrator and mediator. He has been an arbitrator or mediator in hundreds of complex commercial cases, as well as numerous pro bono mediations as a member of the mediation panels of the United States District Court, Southern District of New York; the United States Bankruptcy Court for the Southern District of New York; and the New York Supreme Court, Commercial Division, New York County. In addition, he serves as a Special Master (mediation) in the New York Appellate Division, First Department.
Representative Arbitrations • Dispute over who was the rightful owner of Israel’s leading English daily newspaper, the Jerusalem Post. • Disputed claim under a political risk insurance policy based on the demise of a large power plant project in Inner Mongolia. • Alleged breach of a joint agreement to develop the port of Puerto Cabezas and its surrounding facilities in Nicaragua.
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Alleged breaches of a joint venture to run a fibre optic telecommunications network from Moscow to Khabarovsk. Claim that a leading member of the U.S. Olympic Equestrian team was responsible for illegal substance in a horse she had trained and was, therefore, ineligible to participate in the Olympics. Claims by the limited partners of a major-league baseball team asserting, among other things, that
John serves on the panels of neutrals of the American Arbitration Association (AAA), the International Centre for Dispute Resolution, the CPR Institute for Conflict Prevention and Resolution (CPR) (national and international panels); the Hong Kong International Arbitration Centre and the Kuala Lumpur Regional Centre for Arbitration and Mediation. A few examples of arbitrations and mediations in which John has served are the following:
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Representative Mediations • Claim that a power company’s negligence caused a blackout that damaged and shut down a large factory. • Claim that a large office building in Manhattan was structurally unsound. • Reorganisation of a computer software company in light of serious differences among the principals. • Significant differences among members of a high profile singing group. • Claim that a large distributor of medical supplies fraudulently procured rebates from its supplier. • Claims arising from the crash of a commercial helicopter in the Gulf of Finland. In addition, among John’s various activities are the following: He is a frequent speaker on arbitration and mediation to professional and bar organisations, corporate legal departments and law school classes, as well as to groups such as the legal department of the Navy. He has written numerous articles and chapters on dispute resolution and was
editor and co-author of the ADR Practice Book (John Wiley & Sons), which received CPR’s award and honorarium for best dispute resolution book of the year. He also coauthored the New York State Bar Association Guidelines for the Arbitrator’s Conduct of the Pre-Hearing Phase of Domestic Commercial and International Arbitrations. John served as Chair of the New York State Bar Association’s Dispute Resolution Section (Section) (2013-14) and twice served as Chair of the Section’s Mediation Committee (200810, 2015-16) and once as Chair of the Section’s Arbitration Committee (2010-12). He also has been a member of the Section’s Executive Committee from 2008 to present. He served on a six-person committee that revised the Model Standards of Conduct for Mediators. • John is an AAA Master Mediator (one of nine in New York State). • He is a Fellow and past member of the board of the College of Commercial Arbitrators. • He has been Vice-Chair of the ABA’s Arbitration Committee (2012-13). • He has been a member of the board of the NY International Arbitration Center (2013-15).
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He has been a long-time instructor of arbitrators and mediators. John recently received the 2016 Lifetime Achievement Award of the American College of Civil Trial Mediators.
John has been recognised in a number of well-known publications, including: • Best Lawyers in America, 2015. • Super Lawyers, NY Times Magazine, 2015. • New York Area’s Best Lawyers, NY Magazine, 2015. • Marquis, Who’s Who in the World; Who’s Who in America, 2014. • Wall Street Journal, Best Lawyers in New York City, Nov. 2015. • American Registry, America’s Most Honored Professionals, 2015. • American Lawyer, Top Lawyers, 2015. John received his B.A. from Williams College and his LLB from Fordham Law School, where he was an editor of the Law Review and received awards for the highest grades in eight courses. John lives in New York with his wife, Mia. They have two children, Heather and Carter. More information can be found at John’s website www.johnwilkinsonlaw.com
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the general partner had not made a good faith effort to obtain a new stadium and to keep the team in the city where it had originated. Valuation of a New York City office building, a fleet of ships, a corporation and a portion of a regional shopping mall. Twenty-billion-dollar dispute arising from a project to construct a submarine fiber optic network around South America.
Company: John Wilkinson Email: JohnHWilkinson@msn.com Web Address: www.johnwilkinsonlaw.com Address: Fulton Vittoria, LLP One Rockefeller Plaza, Suite 301 New York, NY 10020-2002 Telephone: +1 212 586 0700
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The $84.31 Billion Drone
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The $84.31 Billion Drone Research and Markets has announced the addition of the “Drone-Powered Business Solutions Market Analysis By Solution Type, By Drone Type, By Application, By End-Use Industry, By Region, And Segment Forecasts, 2014 - 2025” report to their offering. The global dronepowered business solutions market size is anticipated to reach USD 84.31 billion by 2025. Drones have now moved past the hobby realm and are increasingly being used for a wide range of applications. Businesses across the world are exploring new applications of drones in their day-to-day operations.
Further key findings from the report suggest: • Commercial drones and their applications are expected to become the next big export product for many European companies. • Drone service providers are now shifting their focus to data collection and processing due to limitations and difficulties in day-to-day data Real-world applications for capturing operations, Unmanned Aerial Vehicles which, in turn, reduces the (UAVs) are expanding faster ability to scale business. than ever across a broad • Legislative and regulatory range of industries, mainly aspects of drone due to the relaxation of operations are presently some stringent regulations the key factors propelling governing their use and robust the adoption of droneinvestments. Responding to powered business solution the rapidly evolving drone by various organizations technology, various companies across the world. across the world are now creating new business and operating models for dronebased services.
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Bowing out of managing their in-house fleets of drones has been observed as an emerging trend among organizations. Instead, organizations are contracting with third-party service providers under the Drone as a Service (DaaS) license. Poland was the pioneer to roll-out a legislation regarding the commercial application of drones, including insurance regulations, rules for Beyond Visible Line of Sight (BVLOS) flights, and required training for pilots, followed by Singapore and South Africa.
For more information about this report visit http://www. researchandmarkets. com/research/8g88hh/ dronepowered
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Antiquated Collaboration Tools
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, 80% of IT and Security Professionals Admit Company is Using Antiquated Collaboration Tools New research from secure collaboration provider Intralinks and the Cloud Security Alliance (CSA) examines the progress towards content-driven digital transformation and data privacy compliance in the enterprise. To stay relevant in an increasingly digital world, companies are either starting to or are currently in the process of transforming their digital environment to improve collaboration and information sharing. Meanwhile, data privacy legislation, such as the General Data Protection Regulation (GDPR) is redefining how data can be shared across country borders. The report from Intralinks and the CSA, Collaboration in the Era of Digital Transformation: Barriers to Entry, expands on these trends and ultimately identifies three crucial barriers companies are facing as they look to achieve these dual goals and maintain their competitive edge: • Outmoded and clunky enterprise content management systems (ECMs) • Data siloes that inhibit collaboration between departments and stakeholders • Data privacy and compliance worries
The report sheds light on these barriers, as well as content sharing and data privacy trends. Key takeaways from the survey results include: • Of the IT and security professionals surveyed, a full 80% admit that their company is still using traditional file folders to organize and share content • 57% of respondents think their company’s content tools like ECM, cloud storage and SharePoint are siloed and difficult to connect • 74% of respondents are either not very confident or not confident at all that they will meet the compliance deadline for the GDPR in 2018 Intralinks’ latest initiative, the Intralinks Trust Perimeter, is designed to support customers’ growing data protection challenges. This initiative allows Intralinks customers to ‘define your own perimeter,’ where companies decide how information is protected as it leaves the firewall and moves around the world, while meeting growing data privacy demands.
“Our research with the CSA sheds light on the barriers that enterprises continue to face as they try to meet the seemingly opposing goals of increased collaboration versus stricter security and regulatory compliance measures,” said Daren Glenister, Field CTO at Intralinks. “Our goal at Intralinks is to show businesses how our platform allows them to collaborate securely while maintaining control over wherever their information travels.” Methodology and Demographics The methodological approach in the report involved the analysis of studies and reports from relevant analysts and publications, as well as a survey of 440 security professionals across 23 countries during a span of 11 weeks. Respondents consisted of IT and security professionals across multiple industry verticals, job levels and company sizes. CSA had final editing rights of the survey questions before distribution to the public and the final report. For more information, visit www.intralinks.com
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Are You Aware of Your Duties as a Manager or Director?
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Are You Aware of Your Duties as a Manager or Director? Due to the significant impact corporate governance has, not only on the interest of all stakeholders but also on the state’s economy, and with the view to develop its corporate governance regime and bring it into line with the best international practice, the UAE’s government had taken several steady steps and issued several laws and regulations to regulate managers’ and directors’ duties and liabilities. The liabilities imposed on managers and directors in the UAE can be either contractual (based on a management or employment contract or on a power of attorney - the ‘POA’) or statutory (as may arise under any legislation, laws or regulations issued in the state) and they are divided into civil liabilities in general, and criminal liabilities in certain cases where a breach is considered to be a crime, under the UAE’s Commercial Companies’ Law (the ‘Law’) or any other legislation or law. Civil liability is usually established when a manager or a director breaches any of the duties or obligations
prescribed in any legislation, law or regulation, in the Articles of Association (the ‘AOA’) or Memorandum of Association (the ‘MOA’) of a company or in its general assembly’s resolutions, or if they act outside the authorities granted to them therein, in their employment or management contracts or their POA.
and obligations into general (applicable to all commercial companies) and specific (according to the nature or legal form of the company).
The general duties and obligations imposed on all managers and directors of limited liability and joint stock companies under the Law include the following: • To comply with all Given its special nature and legislation and laws objectives, the Law is the issued in the state, the main legislation regulating provisions of the MOA and managers’ and directors’ AOA, their employment duties and obligations which all or management contracts managers and directors should and the resolutions issued be acquainted with in order by the general assembly; to avoid violating them, which • To register the might render them legally companies’ MOA and AOA accountable. Accordingly, the and all their amendments Law classifies these duties in the commercial register;
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Are You Aware of Your Duties as a Manager or Director?
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, • To preserve the companies’ rights and to act for its benefit with the care of a prudent person, in accordance with its objectives and the powers granted to them and to avoid fraudulent acts; • Not to manage, participate or be involved in any business in competition with the company; • To prepare the annual budget, calculate profits and losses, prepare an annual report about the company’s activities and its financial position and have them audited by the company’s auditor before approving and presenting them to the general assembly along with their recommendations on the distribution of profits and to submit a copy of the same and the company’s books and documents if so requested by one of the shareholders; • To call for a general assembly meeting at least once within a fiscal year and in accordance with the Law and; • To register the dissolution of the company in the commercial register with the competent authority and to announce the same in two daily local newspapers. In addition to the above duties, the Law lists specific obligations imposed upon the managers and the directors of some companies according to the nature and legal form of that company. For instance, the managers of limited liability companies are obliged to link its name with the phrase ‘LLC’ (otherwise they could be held jointly and severally accountable for the company’s obligations) and the chairmen
and the directors of joint stock companies are obliged to: • Convene board meetings at least 4 times a year; • Notify the competent authority of all the resolutions relating to the election of the chairman, the vice chairman and any other executive directors; • Prior to their appointment, confirm in writing their acceptance of their nomination as directors and to disclose any activities conducted directly or indirectly by them in competition with the business of the company; • If any of them has any common or a conflicting interest in a transaction presented before the board for approval, he/ she must notify the board of such interest, and such declaration must be recorded in the minutes of the meeting. Such a director shall not vote on the resolution concerning such transaction. Many directors fail to consider or comply with this requirement, and in such event, the company or any of its shareholders may apply to the competent court to annul the contract or to require the violating director to pay any profit or benefit gained by him from such contract to the company; and • Not utilise the information to which they have access due to their position or occupation, to gain any interest for themselves or for third parties whatsoever.
the legislation, laws and regulations, the legislator has imposed on them numerous penalties involving fines or even imprisonment for violations. Furthermore, some penalties may be imposed on companies due to the violations or breaches by their managers or boards of the provisions of the Law or the MOA and/or AOA, and such penalties may be deducted from the Boards’ remuneration or claimed from the managers and any exemptions or waivers granted to them in that respect will be void. There are many duties and obligations imposed on managers and directors in the UAE of which they must be fully aware in order to avoid violations, as any violation or breach may expose them to substantial liabilities, whether civil or criminal.
Name: Mojahed Al Sebae, Partner Company: Galadari Advocates and Legal Consultants Email: mojahed@galadarilaw.com Web Address: www.galadarilaw.com Address: Office 502-504, Level 5, Gate Precinct Building 5, Dubai International Financial Centre (DIFC) P.O. Box 506916, Dubai, UAE Telephone: +971 4 371 1999
In order to ensure that managers and directors comply with all their duties and obligations under all
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Justice Secretary Elizabeth Truss unveils landmark Prisons and Courts Bill
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Justice Secretary Elizabeth Truss unveils landmark Prisons and Courts Bill Justice Secretary Elizabeth Truss on 23rd February 2017 unveiled the historic Prisons and Courts Bill, paving the way for the biggest overhaul of prisons in a generation and the delivery of a world-class court system. This key piece of legislation will underpin measures in the recently published Prison Safety and Reform White Paper, and will help transform how our prisons are run. Prisons will punish people who break the law and give offenders the skills they need to turn their lives around, driving down the £15 billion annual cost to society of reoffending. It sets in law for the first time that a key purpose of prisons is to reform offenders, as well as punish them for the crimes they have committed. Victims and vulnerable witnesses are also central to the Prisons and Courts Bill, with a range of measures that will bolster their protection in court. The government is giving courts the power to put an end to domestic violence victims being quizzed by their attackers in the family
courts, calling time on what the Justice Secretary has described as a “humiliating and appalling” practice. This follows an urgent review she commissioned last month.
“Our courts should be places where victims get the justice they deserve, and where our outstanding independent judiciary can flourish and focus on the cases that matter.”
Car insurance premiums will also be cut by around £40 a year, with new fixed tariffs capping whiplash compensation pay-outs and a ban on claims without medical evidence, helping to crack down on the compensation culture epidemic.
The changes announced build on and underpin measures contained in the Prison Safety Reform White Paper, which highlights how the government will drive reform in our prisons.
Justice Secretary Elizabeth Truss said: “Prison is about punishing people who have committed heinous crimes, but it should be a place where offenders are given the opportunity to turn their lives around. “I want our prisons to be places of discipline, hard work and self-improvement, where staff are empowered to get people off drugs, improve their English and maths get a job on release.
Governors will take control of budgets for education, employment and health and they will be held to account for getting people off drugs, into jobs and learning English and maths. Data for league tables detailing how prisons are performing in these areas will be publicly available from August 2017. Across the country, more than 2,000 new senior positions are being created for our valued and experienced officers to be promoted into. These posts, which include specialist mental health training, will have a salary of up to £30,000.
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Justice Secretary Elizabeth Truss unveils landmark Prisons and Courts Bill
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, Prisons and Courts Bill measures relating to courts underline the government’s commitment to victims and the most vulnerable, as well as improving the system for those who use it every day. We are making our courts more open and modern to help cement our place as a world-leader. Key measures within the legislation will make our courts swifter, more accessible and easier to use for everyone. They will be efficient and fit-for-purpose, with facilities across the entire estate that are modern, user-friendly, and work in favour of our dedicated judges and magistrates.
Pay that penalty there and then. And businesses will be able to recover money much more easily, with digital services that allow them to issue and pursue their cases quickly. This will give them vital confidence to do business here, and will enable our world leading justice system to remain the international destination of choice for dispute resolution.
Justice Minister Sir Oliver Heald said: “Britain has the best justice system in the world, but it should also be the most modern, because we have a vision for a justice system that truly works for The use of virtual hearings will everyone. Victims and the be extended, allowing victims most vulnerable are at the to take part without running the centre of our changes, which risk of coming face-to-face with will help deliver swifter and their assailant. Many hearings, more certain justice for all. such as bail applications, will be resolved via video “We want courts that are or telephone conferencing, efficient and fit-for-purpose, allowing justice to be delivered with facilities across the more swiftly. entire estate that are modern, user-friendly, and work in Offenders charged with some favour of our hard-working less serious criminal offences, and dedicated judges and such as failure to produce a magistrates. ticket for travel on a train, will be able to “The Prisons and Courts Bill • Plead guilty online; underpins this vision – building • Accept a conviction; on the good progress we have • Be issued a penalty and; already made in improving the experience of all users and cementing our reputation for global legal excellence so we can go on attracting business to the United Kingdom.”
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Motor Insurance Premiums Reach Highest Recorded Levels
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Motor Insurance Premiums Reach Highest Recorded Levels Motor insurance premiums hit their highest recorded levels last quarter and rose more than five times the rate of inflation in 2016, as tax increases, increased repair costs and the rising costs of whiplash style injury claims puts pressure on premiums. The new figures come amidst concern that the UK’s Ministry of Justice could be about to pile more pressure on motor premiums through a cut in the discount rate – a mechanism used by the courts to adjust large compensation payments to take account of future investment returns. The ABI’s Motor Premium Tracker – which is the only survey which measures prices consumers actually pay for their motor cover, rather than quotes - shows that in the fourth quarter of 2016: • The average price paid for private comprehensive insurance was £462. Highest figure previously recorded was £443, in Q2 2012. • This was up 4.9% on the previous quarter, adding an extra £22 to the average premium. This is the second highest quarterly increase recorded. • The average premium over the whole of 2016 is now 9.3% higher than the average premium over the whole of 2015. Rob Cummings, ABI’s Assistant Director, Head of Motor and Liability, said: “These continue to be tough
times for honest motorists. They are bearing the brunt of a cocktail of rising costs associated with increasing whiplash style claims, rising repair bills and a higher rate of Insurance Premium Tax. “While we support the Government’s further reforms to tackle lower value whiplash costs, it must not give with one hand and take away with the other. The sudden decision to review the discount rate has the potential to turn a drama into a crisis, with a significant cut throwing fuel on the fire in terms of premiums. “Insurers are open to a proper dialogue on how to reform the system and urge the Lord Chancellor to engage with the industry about setting a rate that is fair for both claimants and customers. “ What is driving premiums up? Tax: Since the Budget in July 2015 there have been three separate increases in the rate of Insurance Premium Tax, which means that the tax will have doubled from 6% to 12% when the latest rise comes into effect on June 1 this year Personal injury claims like whiplash: The average bodily injury claim settled in Q3 2016 came to £10,674 - a 2.3%
increase on the same period last year Rising repair costs: The average repair bill has risen by nearly 32% in the last three years to £1,678 in Q3 2016. This is due to increasingly complex vehicle technology and rising cost of spare parts due to currency fluctuations What is the discount rate? The discount rate adjusts amounts of money awarded as personal injury damages to take into account the return which can be expected when that lump sum is invested. Since 2001 it has been set at 2.5%. There is concern that the Ministry of Justice could be about to announce a new figure based on an outdated method which doesn’t take into account how claimants actually invest compensation and risks pushing up insurance premiums. The discount rate impacts claims often worth millions of pounds so even a change of half a per cent will have a substantial impact. For more information see our special briefing here. More news and information from the ABI is available at www.abi.org.uk.
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Search Engines and Creative Industries Sign Anti-Piracy Agreement
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Search Engines and Creative Industries Sign Anti-Piracy Agreement The UK Intellectual Property Office (IPO) has helped broker a landmark agreement which will see search engines and the creative industries work together to stop consumers being led to copyright infringing websites. Representatives from the creative industries, leading UK search engines, and the IPO developed a Voluntary Code of Practice dedicated to the removal of links to infringing content from the first page of search results. The Code agreed on 9 February 2017 will come into force immediately, and sets targets for reducing the visibility of infringing content in search results by 1 June 2017. Minister of State Jo Johnson MP will oversee the implementation of this Code of Practice, and the IPO will work with all parties to evaluate progress.
Jo Johnson, Minister of State for Universities, Science, Research and Innovation, said: “Search engines play a vital role in helping consumers discover content online. Their relationship with our world leading creative industries needs to be collaborative. Consumers are increasingly heading online for music, films, e-books, and a wide variety of other content. It is essential that they are presented with links to legitimate websites and services, not provided with links to pirate sites. “I am very pleased that the search engines and representatives of the creative industries have agreed this Code. I look forward to this valuable collaboration benefiting both the UK’s digital and creative sectors.”
Minister of State for Digital and Culture, Matt Hancock, added: “We are one of the world’s leading digital nations, and we have a responsibility to make sure that consumers have easy access to legal content online. Pirate sites deprive artists and rights holders of hard-earned income and I’m delighted to see industry led solutions like this landmark agreement which will be instrumental in driving change. “As we build a more global Britain we want the UK to be the most innovative country to do business, and initiatives like this will ensure our creative and digital economies continue to thrive.” www.gov.uk
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The Effects of Divorce on Business
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The Effects of Divorce on Business Going into business with your significant other is increasingly common and can be a hugely positive experience – helping to strengthen personal relationships and create a solid foundation from which a business can thrive.
These partnerships though could only work when there is an abundance of trust, like-minded thinking and honesty. At least this is what I have found in my own personal experience working along side my husband at my company A City Law Firm. When it comes to our working relationship we have very clearly defined roles that allow us to employ our own skills without stepping on each other’s toes. I’m the MD, he’s the Practice Manager and family time, is a ‘no-workzone’, completely dedicated to our son. Despite running an accomplished business together and being happy in our marriage, I am acutely aware that things can go wrong and have often found
myself in the middle of a messy business dispute between spouses. Divorce does happen and for couples who are also in business together the impact can be detrimental and far reaching Over the years, I have dealt with hundreds of couples who have gone into business together without suitable legal protection because they felt the usual protection was not required of people in love. Having THAT conversation is not easy or romantic, but it’s certainly very necessary. If your marriage fails, it can have a serious impact on your business so how can you protect yourself and the business from the effects of divorce?
Tip 1: Documentation, Documentation, Documentation Every business with more than one owner should have a founder’s agreement in place. For married couples this is crucial and I cannot stress this enough. When you’re happy in your relationship and everything is running smoothly, the idea of what is seen as a ‘business pre-nup’ seems unnecessary and probably quite awkward to discuss but please consider this; without legal documentation, if it goes terribly wrong you could be leaving it to a court to decide on the ‘fair’ division of your assets. When it comes to divorce, many entrepreneurs (men and women) often don’t realise
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The Effects of Divorce on Business
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, that their partner may be entitled to a 50:50 split of their company – even if through all your sweat and tears they haven’t been really involved at all. The longer you are in your marriage ; children or the financial resource disparity, the more likely this becomes.
Over the years’ I have witnessed some questionable tactics from owners trying to protect their businesses - hiding assets, selling them at an undervalue and even delaying account preparation. Sometimes partners will even gift assets away ahead of anticipated divorce The equal division is frequently proceedings to spite the the starting point for family other party and reduce the proceedings and unless you overall value and share of the can prove why it is unfair, you company. may be forced into a situation where you have to buy out While the family court can put your business partner. Many injunctions in place or reverse businesses don’t have the free transactions, it is costly and capital for this and it could be emotionally destructive for you the beginning of the end. at an already distressing time. Several months ago, I dealt with a client who had no legal documentation and the business could not afford to buy the partner out. The couple were forced to work alongside each other for 18 months before they could afford a clean break which caused enormous friction, staffing issues and terrible disruption to the business.
Tip 4: Puff out your chest and have THAT chat now
Tip2: Pre and Post Nups
If it’s not too late, get a founder’s agreement (Shareholder’s agreement for companies) drawn up to cover the following points: - Transfer of all IP to the company - Set out what happens in the event of a dissolution or dispute
In addition to the founder’s agreement, I would suggest getting a Pre or Post-nuptial agreement in place as it can be very persuasive during divorce proceedings. Also ensure your Will mirrors these documents too because in the event of your death, it governs where your shares or their cash value go and how this will be distributed. This is really important, especially if you have children together.
As a solicitor and fellow entrepreneur, I urge all spouse partnerships to address this as a priority. I know what it’s like to build a business from scratch and it would be devastating to have it all taken away for the sake of a simple document.
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Agree restrictive covenants to refrain the departing spouse stealing clients or setting up in direct competition or sharing confidential information Specify who owns what shares and make clear any monies put in by each of you. Keep good accounting records to formally log all sums paid in and withdrawn so its transparent and no one can hide anything during the proceedings if the worse happens Clarify how the business will be valued , shares sold/bought if one of you leaves and define each of your rights and roles
This agreement offers you a transparent and sound platform on which to build your business.
Company: A City Law Firm Limited Name: Karen Holden Email: enquiries@acitylawfirm.com Web Address: www.acitylawfirm.com Address: 64 Clifton Street, London EC2A 4HB Telephone: 0207 426 0382
Tip 3: Be Wary of Dirty Tactics When your relationship has broken down and emotions are involved, it is hard to make logical and rational business decisions.
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