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Fresh Threads: Court date, voluntary redundancy, workshops, and a director dilemma

  1. James Martini

    James Martini UKBF Ace Staff Member

    1,002 3
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    Hi UKBFers,

    Welcome to Fresh Threads, our weekly roundup of the best comments and advice from the forums. 

    Here are my top picks from this week.

    1) Will a verbal agreement stand up in a small claims court?

    Paulsou

    I am being taken to court over a rental dispute, despite not signing a contract or agreement. 

    He claims that I owe him 4 weeks’ notice/rent. If I signed nothing, do I have to pay? Or have I got to pay whatever he says he wants?

    Newchodge: Forget about signed, was there any agreement oral or written, about notice?

    Paulsou: @Newchodge No paperwork apart from the invoice for rental upfront,  which was paid up to date and on time.

    The only time I was made aware of any notice was once I had emailed him telling him I have moved out 2-3 days before the next invoice was due.

    He said he told us at the start, but he didn’t and he didn’t even want any deposit..

    Mark T Jones: The point of a verbal agreement is that it boils down to an argument about who said - or didn't say - what. You say it wasn't mentioned. He says it was = 50/50.

    Newchodge: If it comes to court, it will boil down to who the judge believes.

    2) Can an employee request redundancy?

    ruby123

    I have an employee with a history of long-term sickness. Today, at a return-to-work meeting after five months off sick, they asked to be made redundant.

    To be honest, this suits me. Sure, it will cost but it’s a relief to be able to put this issue to bed.

    Can anyone see any issues with this? I assume as the employee made this request in writing then there can be no comeback?

    alan1302: Unless their role is no longer needed, then surely they cannot be made redundant and they could just leave?

    ruby123: @alan1302 I think it’s likely they would continue to play the system. It’s a way of leaving with a lump sum rather than nothing, or continue to receive sick pay.

    Newchodge: Why do you not manage them out of the job by following proper procedures?

    If you make them redundant when they are not, they can claim unfair dismissal.

    UKSBD: If they have submitted a letter requesting they be made redundant, can that be construed as a reignition request?

    3) What do you want from a business workshop?

    Ashley_Price

    My business is looking to run around six workshops next year on a range of topics, such as starting a business, first-aid in the workplace, and social media. 

    What topics would encourage you to attend a workshop? What would you want to know about, or improve your knowledge on?

    Mr D: Trademarks.

    fisicx: It's taken a while to get my head round this but it's now clear that everything revolves around marketing. 

    A bad product with good marketing will make money. A good product with no marketing will lose money. A good product with great marketing will make lots of money.

    Clinton: Have a workshop about getting more customers, have another one about using social media to get customers, and one on using SEO to get lots of free customers etc.

    Mark T Jones: I agree on marketing. Beyond that - credit control. End to end.

    4) Bringing in a new director

    SPA Recruitment

    I’m the sole director in my limited company, but I am due to introduce a new director (50/50 split) in mid-November.

    I currently have a balance sheet of £110,000 after corporation tax, but I don’t want the new director to be entitled to half of the profits. 

    I wanted to take my money out of the business to avoid this, but taking it out in dividend will attract a lot of tax and having a director’s loan will attract a benefit.

    Can you suggest anything?

    Scalloway: A director is not entitled to any share of a company's assets. A shareholder would be, though. Are you planning to let the new director hold shares in your company? 

    Nick Grogan: Why a new director and not an employee? Why are you giving this new director 50% of the shares?

    Mr D: As a shareholder, the new director can block anything in a shareholder vote and as a director they can block any decisions directors make. Are you sure you want to make him a director? It sounds like you want an employee. 

    TheCyclingProgrammer: Get your company valued (it's not necessarily whatever your retained profits are – it may have other assets and goodwill besides cash) and sell half of your shares to the other director for a reasonable market value.

    That's all for this week – keep an eye out for the weekly UKBF newsletter on Friday.

    #0
  2. Furqan721

    Furqan721 UKBF Contributor Free Member

    54 4
    Thank You for sharing this stuff!
     
    Posted: May 16, 2018 By: Furqan721 Member since: Feb 26, 2018
    #2
    Chris The Dropshipper likes this.
  3. Clinton

    Clinton UKBF Big Shot Free Member

    4,496 1,701
    Just for the record, my comment was a joke! It pokes fun at the vast majority of small businesses where the owner just wants more sales, more sales, more money.

    What they really need is guidance on the law, on maintaining proper accounts, on tax, on managing finances, on taking care of employees, on planning for the exit ...lots of stuff other than sales if they can be bothered to focus on building a sound business rather than just making more money.
     
    Posted: Nov 7, 2019 at 8:02 PM By: Clinton Member since: Jan 17, 2010
    #9
  4. JEREMY HAWKE

    JEREMY HAWKE UKBF Legend Full Member

    4,088 1,290
    If you goal is just a villa on the med and not just to be seen as a model business person . You will only focus on that goal . The reality is it will always be too late for that type of person .
     
    Last edited: Nov 12, 2019 at 5:36 AM
    Posted: Nov 12, 2019 at 5:33 AM By: JEREMY HAWKE Member since: Mar 4, 2008
    #10