LEGAL SERVICES FOR BUSINESS October 2024 | AshtonsLegal.co.uk
Agriculture Legal Update
Are you prepared? Your business/your wishes in ill health
You have worked hard to create a successful business and are now taking prudent steps to look at how best to protect and promote your wishes for your business, for the future.
We accept the fragility of life, but when you are running a business, you have greater responsibilities to consider, not merely just for yourself. What if you are alive but become mentally incapacitated? Who is now going to be able to see to matters should you lack mental capacity? You may have responsibilities not only to yourself and loved ones but also to employees and clients. There is a significant detrimental impact that results from somebody losing mental capacity. This could be temporary but may be long-standing and permanent. What would happen to all if you were unable to make a decision?
To avoid the risk of your business being unable to continue with its operations and to avoid reputational damage, which could lead to closure or, quite possibly, the sale of the business at a reduced value, it is sensible as part of your business resilience plan to safeguard against these risks by way of creation of a LPA over your property and financial affairs.
There are a number of matters that do need to be very carefully considered when looking at Business LPAs to ensure that the needs and wishes of the business owner are met and enable the business to achieve its full potential and for its legacy to continue.
Contact Ayesha Brown to chat this through.
Meet the team: Ayesha Brown
Ayesha has more than 25 years of experience and offers expert advice on all aspects of Wills and Tax Planning advice for the agricultural and rural community, including estate and succession planning, Wills, trusts and powers of attorney. She has specialist qualifications for all these areas, including working with vulnerable and older clients, and qualifications from the Agricultural Law Association.
Limited Partnerships – Changes Afoot
The basic premise of a partnership is two or more people trading in business together with a view to make a profit. It is a relatively simple concept that has existed for centuries.
What this looks like in practice, however, is ever-evolving to keep pace with the increasingly dynamic and changing world of farming.
Most farming partnerships are unlimited partnerships, meaning that each partner has unlimited liability for any business/related matter.
The Limited Partnerships Act 1907 continues to underpin Limited Partnerships, but the recent Economic Crime and Corporate Transparency Act 2023 aims to modernize this framework, subject to detail to follow in secondary legislation.
Most of the reforms are likely to have a six-month transition period, so if you are thinking of entering into an LP or are already part of one, we recommend speaking to your professional advisers sooner rather than later to review your current position with the forthcoming changes in mind so that you are in the best possible position when they do come in.
Please note: Limited Partnerships are different from LLPs. Limited Partnerships are useful to use in succession planning, particularly when a son or daughter has a separate career or separate wealth.
A limited partner, does not have limited liability, but can be with other unlimited farmer in a limited partnership.
The liability for a limited partner is normally limited to a set amount of money defined in the partnership deed or as an alternative, a defined asset. A limited partnership is also useful when there are trustees who wish to limit their own liabilities.
Meet the team: Fenella Eddell
Fenella is an agricultural lawyer with many years of experience acting for East Anglian farmers. Fenella has particular knowledge of dealing with family farm partnership agreements and advice on how to pass the farmland and assets safely to the next generation. She has a pragmatic approach to helping farmers and landowners resolve issues and provide the commercial help they need to run successful businesses.
Health and safety prosecutions – some recent cases
Tim Ridyard in our Regulatory & Crime team reviews some recent prosecutions brought by the Health and Safety Executive that concluded in 2024.
A constant theme in health and safety prosecutions on farms is that of accidents occurring involving vehicles or plant. There may not have been proper segregation of vehicles and pedestrians where there is a lorry visiting a site or operating centre, or where vehicles or plant of the business are being used and an own employee is injured or even killed. This issue has been present in various cases prosecuted by HSE concluding in 2024, though most of the accidents to which they relate took place some years ago, as far back as 2019.
Remember the basics
It should be remembered that businesses may also face enforcement action if they do not address the risk of harm – they may be in breach even though no accident or event involving death or injury occurs.
Assessment. System. Train. Implement. Audit. Document. And repeat…..
Meet the team: Tim Ridyard
Tim specialises in advising and representing businesses and individuals in regulatory matters, including regulatory criminal cases, in particular guiding them through investigations and defending any subsequent prosecution or regulatory action being taken in courts or other tribunals.
Please remember that we are available to assist you and your business with our full range of business, individual and injury law services including commercial and residential property, corporate advice, dispute resolution, family law, estate planning, personal injury and medical negligence.
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