MPs blame “catalogue of failures” for Kids Company demise

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A salutary lesson will have been provided to both charities and those considering the use of company secretarial services by the report released by MPs in early February on the circumstances that led to the collapse of the charity Kids Company.

Kids Company’s closure in August followed controversy over the management and finances of the charity founded by Camila Batmanghelidjh in 1996. Now, the Commons Public Administration and Constitutional Affairs Committee (PACAC) has released the results of its inquiry, describing the charity’s collapse as the result of an “extraordinary catalogue of errors”. Continue reading

New Sentencing Guidelines preceded by highest ever UK fine for corporate manslaughter

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The death of a crane driver has led to the conviction of corporate manslaughter for a mobile crane hire company, making it the first in the UK to suffer such ignominy. Despite the verdict being handed down before the introduction of new, tougher Sentencing Guidelines this month, the level of the fine sends out a strong message to all UK organisations that may need to invest further in risk and compliance services. Continue reading

Why it isn’t always a good idea to ‘buy back’

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In 2014, a $1 billion share buyback programme was initiated by Glencore plc, the biggest mining company in the world that has also strong interests in coal, copper and commodities. This move typified an ongoing trend of companies acquiring their own shares that has proved especially prevalent in the United States, with 2014 seeing a more than 50% rise in the use of company buybacks. Continue reading

Lord Davies sets 2020 target of one-third female FTSE 350 boards

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Lord Davies’ final summary report on increasing the representation of women on the boards of FTSE companies will make interesting reading for many of those organisations conducting a corporate governance review or taking advantage of any of London Registrars’ other governance and compliance services.

Women on boards: 5 year summary was issued on 29th October 2015, with the Government fully supporting all of its recommendations – including a new target for the proportion of women on the boards of the UK’s 350 biggest companies (the FTSE 350) to reach 33% by 2020. This would amount to about 350 more women board members. Continue reading

Corporate Manslaughter and Corporate Homicide Act 2007

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Introduction

The Corporate Manslaughter and Corporate Homicide Act 2007 (‘the Act’), which came into force in April 2008, was a landmark in law which for the first time allowed the authorities to prosecute organisations where a corporate management failing has led to the death of an individual, resulting from a breach of Health and Safety at Work. Continue reading

Good intentions are major factor in ‘market value’ intra-group transfers

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One subject that may puzzle those approaching London Registrars for commercial law consultancy services is that of intra-group transfers of assets – including shares in other group companies – by sale or distribution. While such transfers are common in corporate transactions such as group restructurings, demergers and pre-sale reorganisations, ensuring that such transfers are at ‘market value’ has long worried some company directors. Continue reading

London Stock Exchange consults on AIM rule changes

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News that any AIM company secretary should be firmly aware of is the recent release by the London Stock Exchange (LSE) of a notice, to Nominated Advisers and all AIM companies, that it is consulting on proposed alterations to the AIM Rules for Companies. Such changes will apply to both investing companies and AIM companies undertaking a fundamental change of business, with the AIM Note for Investing Companies also being modified as a result. Continue reading

Requirements for when an auditor leaves office now simplified

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Many of those that have changed auditors for their companies will not need to be reminded of the, obligations are outlined in the Companies Act 2006 on both an outgoing auditor and the company that it is ceasing to audit. These measures ensure that both company shareholders and the appropriate authorities are informed about the departure of the auditor and the reasons why. Continue reading