Hylton-Potts Law Blog

Legal Issues and Opinions affecting people from across the UK


Can a Husband hide behind a company?

The judgment of the Supreme Court in Petrodel Resources Ltd v Prest gave some clarity for those involved in family and company law. There has been particular practice followed in the family courts; where a spouse was the only shareholder of a company, which held assets but did not have third-party creditors, those assets could be transferred directly to the other spouse in settlement of his or her claims. That the practice ‘must now cease’. The Supreme Court’s judgment confirms that there should be no such practice – the rock of separate corporate personality must be respected. Mrs. Prest’s appeal

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An offer you can’t refuse

I run a software consultancy company in a highly competitive market. We have a few rain -maker employees who generate excellent profits and I am keen to know what I can do to encourage them to stay. Can I ask them to sign long fixed-term contracts or pay them a bonus which is repayable if they leave within a certain period? The most obvious solution might seem to be a long fixed-term employment contract. However, you cannot force an employee to work. So, in practice, the employee could walk out at any time, despite what his, or her, contract says.

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Beware Sacking Employee

My company recently began working with a sensitive client who demands we undertake Disclosure and Barring Service checks (DBS checks, previously known as CRB) on my staff. One of my employees was convicted of some offences and did not disclose this when he applied for the job. Our client now demands that we dismiss him if we wish to continue working with the company. We do not want to lose the contact, but are wary of dismissing the employee and are worried about what action he could take against us if we do dismiss him. Can you advise? You are

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What Every Divorced Man Should Know

Avoid solicitors’ hourly rates. It’s like therapy. Lawyers are paid by the hour. They say things that make you feel good. And it is in their interest to spin things out. But there will come a time when you and your ex are arguing about the last CD, which is now the only thing either of you possess, and you will suddenly notice that both your lawyers are driving shiny Rolls-Royces. So if you need legal help go to someone like Hylton-Potts, who will charge you fixed fees You’re broke A male breadwinner takes a 25 per cent pay cut,

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Tweeting Woes

One of my employees tweeted something about the accounting policies of a major company that, while light-hearted, could have been construed as libelous. The employee has been dealt with appropriately, but I am worried about how to avoid such situations arising again. As Sally Bercow recently found to her cost, the intended meaning of a tweet is immaterial. The law looks at the ordinary meaning of the words or any innuendo, meaning that they carry as a result of the surrounding factual circumstances. Furthermore, although a tweet is only short, the impact of what is said can be just as

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Business Pre-Nup?

I own a marketing company, and am looking at bringing in a senior person to help.  I want the business if things do not go well. Is there anything like a “business pre-nup” I can put in place? A “business pre-nup” usually consists of a number of documents. The new arrival’s employment contract must contain key protections: restrictive covenants, and confidentiality, garden leave and payment in lieu of notice clauses. Any bonus scheme should require the individual to be in employment and not under notice, given or received, on the payment date to receive a bonus. Ensure any shareholding is

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Enforcing Charging Orders

New civil practice rules could make it easier for creditors to enforce charging orders but they must still follow the correct procedure, says District Judge Paul Ayers CPR 73.3 sets out the requirements for Charging Orders and Orders for Sale. The original application is dealt with without notice, but the interim order must be served on the persons detailed in that order, not less than 21 days prior to the final hearing. Like any subsequent application for an order for sale, the making of the order is in the discretion of the judge. By virtue of section 93 Tribunals, Courts

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Rodney Hylton-Potts interview with Radio Suffolk

Rodney Hylton-Potts is a recognised expert lawyer at benefit and tax credit fraud, and his views are frequently sought by the media. There follows a radio interview he gave on 1 July 2013, with solid and practical tips on what to do if you are in trouble.


Online Sales

I have an online store but only ship to domestic buyers. If I open up the service to international buyers, are there any regulations or laws I need to know about? Do you have any social media legal recommendations? Expanding into international markets could be an excellent strategy for growth. Crossborder sales in Europe alone are expected to grow year-on-year in the online sphere. Outside Europe, China is an increasingly important market (particularly for luxury goods) and is popular with retailers. However, you will need to identify the markets appropriate to your products. There are a number of rules that

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CVA and the last chance saloon

My company is in serious financial difficulty. To avoid administration, we have been advised to put together a restructuring proposal to offer their shareholders who invested. There are concerns that disgruntled shareholders will not support it. Does the company have powers to compel shareholders to agree to the proposal if it is in the company’s best interests? If not, and they reject it, is administration our only option? Once a company is insolvent, the interests of creditors override those of shareholders. It is possible by proposing a company voluntary arrangement (CVA) to sideline shareholders. They get a vote on any

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