Business

Directors at Risk

Directors at Risk

The decision of the Privy Council in Agent V Commissioner of Inland Revenue (affirming the judgment of the Court of Appeal of New Zealand in Re Brumark Investments Ltd) could have far reaching implications for directors who have given personal guarantees in respect of loans or overdrafts to banks. The high street bank is generally the first port of call for the funding of small to medium sized businesses. To secure the obligations of the company under its banking facility the bank will take generally take fixed and floating charges over the assets of the company by way of a debenture. The assets to be charged will include the book debts of the company. In addition, the directors, who in many cases are the owners of the company, may also have to guarantee the facility. In some cases, these guarantees are supported by security, often the directors’ homes. All is...Read more …
Manage your cash flow or your business could fail

Manage your cash flow or your business could fail

When a new business is formed, the founders will, by definition, be of a sales driven, entrepreneurial nature. While these skills are fundamental (let’s face it if a business cannot generate sufficient sales activity then it will not get off the ground!), the area of working capital finance and cash flow management are often neglected. The resulting statistics should be taken on board by all SME directors and owners: 60% of businesses fail as result of cash flow issues. Most businesses wait in excess of 60 days for their customers to pay outstanding accounts and credit management amongst SMEs is often re-active rather than pro-active. It is clear that if businesses have to wait 60 days for their customers to pay outstanding invoices, they will need some financial support in order to ensure that they can pay their own suppliers on time and meet other day-to-day expenses whilst they wait...Read more …
Motorola divided into two companies

Motorola divided into two companies

Motorola have completed the division of its company into two separate companies. The company that focuses on smartphones will be called Motorola Mobility Holdings and its parent company will be called Motorola Solutions. Motorola Solutions will focus on providing innovative and pioneering communications products to governments, public safety and enterprise customers. The reasons for separation is so that both Motorola Mobility and Motorola Solutions can become more flexible strategically and operationally, its management can focus on more specific tasks and areas, and also more targeted investment opportunities for potential investors. Motorola Mobility Motorola Mobility began operating today and it consists of the mobile devices and home business divisions from former company Motorola. Motorola mobile devices include Android and Defy phones.  Motorola Mobility will focus mainly on opportunities that have risen from the coming together of mobility, media, computing and the internet. It began trading this morning under ‘MMI’. The Chief...Read more …
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