Safeguarding future of the family farm

Death and taxes eventually come to us all but for farming families succession planning can be particularly complex, given that agricultural businesses are held in a variety of ways and ownership can be split between the wider family. Emma Elwess, Director of Private Client Department at Pearsons & Ward Solicitors in Malton advocates taking a holistic approach to succession planning in the agricultural sector to ensure the family business can thrive and be passed down to the next generation. ‘When it comes to safeguarding the future livelihood of your family, it makes sense to be prudent and take as much advice as possible to ensure your affairs are in order. There are a number of different professionals, such as land agents, accountants, and agricultural lawyers who can work together on the best ways of structuring…

Avoiding disputes in family owned businesses

When relationships between business owners break down the impact on the business can be far reaching. In a family business, commercial problems can become complicated by unresolved resentments and issues that lie under the surface and once families fall, those problems can be difficult and expensive to resolve. Anecdotal evidence suggests that only 1 in 6 farming family businesses have a written partnership or shareholders’ agreement in place. It is no coincidence that we have seen an explosion of cases before the courts involving farming families who have failed to document how the business is to be run in terms of management, retirement and succession. One of the simplest ways of avoiding conflict in family owned businesses is to reach an agreement at the earliest possible stage about how the family will deal with matters…

Effective Debt Recovery – What you need to know

It is tempting for businesses to be reticent about taking action to recover a debt from a ‘longstanding customer’ particularly one that places a lot of orders with you. But these customers may be affecting your cash flow and putting your business at financial risk. Taking action sooner rather than later is important to the operation of your business and it can also stop your customers seeing you as a ‘soft touch’, paying other creditors before you because they are shouting louder. Effective Credit Control To help ensure your company runs smoothly and cost-effectively. The following steps will help you implement effective credit control: Issuing regular statements to your customers and chasing for payments by email, letter and in person. Making sure that you put procedures in place to avoid the risks of…

Getting vacant possession for redevelopment

Where a business tenant has the protection of the Landlord and Tenant Act 1954 (often referred to as security of tenure), the landlord’s ability to get vacant possession of the property is limited.  A landlord who wants to redevelop must prove that they have a viable scheme and genuinely intend to carry it out.  A significant decision by the Supreme Court means that landlords will now need to seek legal advice much earlier in the process to give themselves the best chance of succeeding. ‘The 1954 Act aims to give business tenants long-term security while recognising that landlords need to be able to carry out redevelopment works to make the best of their property assets,’ says Andrew Little of Pearsons & Ward in Malton.  ‘The challenge for landlords is to prove that they have a…