This article sets out the pivotal points of the discussion from the webinar which included the legal obligations and duties placed on charity trustees, the importance of managing reserves, investments, and returns on cash. 

Duties and Responsibilities

Whilst the role of a trustee can be incredibly rewarding, it is important to fully understand your duties as you are both personally and collectively responsible for the control and management of the charity. The legal responsibilities of trustees have increased considerably over recent years, placing an emphasis on good governance and continued training which may require obtaining professional advice where appropriate. 

The main roles and responsibilities of charity trustees include: 

•    the stewardship role of safeguarding assets and ensuring that charitable funds are properly used and accounted for;
•    ensuring the charity has sufficient income streams and resources to meet its objectives;
•    administration of the charity including the preparation of annual returns, reports, accounts, and reporting serious issues;
•    ensuring compliance with all applicable laws, e.g. charity law, trustee law, health and safety law, employment law, the Bribery Act and data protection law; and
•    ensuring the charity acts within its governing document.

It is important to note that trustees who have specialist knowledge, e.g. if they are a solicitor or accountant will be held to a higher standard and may have more onerous obligations to comply with. Further, charity trustees who are also company directors are obliged to comply with the Companies Act 2006.

Reserves and investments, why are they important?

The Charities (Accounts and Reports) Regulations (Northern Ireland) 2015, requires registered charities to report on their financial position as part of their trustees’ annual report. This should include the charity trustees’ position in relation to holding, or not holding reserves.

The Coronavirus pandemic has had a significant impact on many charities with an increase in demand for their services at a time when their income stream and fundraising efforts reduced substantially. This highlights the need for robust reserves to weather challenging periods. Holding sufficient reserves and an appropriately risked investment portfolio can help charities manage through these difficult times. Reserves are also a reputational balancing act. Whilst trustees may have little influence on the charity’s ability to build up or maintain reserves, they can demonstrate resilience to donors, creditors, and lenders with a robust reserve policy. 

Are your policies fit for purpose?

A good starting point is to consider the guidance on “Developing a Reserves Policy” for charity trustees produced by the Charity Commission of Northern Ireland. The next step is to identify weaknesses in your policies and to consider whether professional advice is appropriate in assisting you with your trustee duties. 

The most successful reserve and investment policies have several characteristics that support the continued financial operation and sound governance of the charity:

•    Help to explain to stakeholders why they hold reserves, how they use them and contextualises the number of reserves with respect to the size, aims and activities of the charity.
•    Provide a framework for decision making and the allocation of future excess / shortfalls in income – particularly during periods of uncertainty.
•    Ensures clear lines of accountability and oversight where advice or decision-making responsibility is outsourced.

Considerations for trustees

In the webinar, some of the reasons why the nature of reserves and investments are changing and why trustees must revisit their existing policy were discussed. The main points are set out below.

Deposit rates & inflation

Most charities wish to preserve the real value of their assets. For reserves that are held for the longer-term, inflation poses a real threat to the purchasing power of the funds. For many years, deposit rates with banks were ahead of the rate of inflation in the UK and investors were able to take little to no action and enjoy growth in the real value of their assets. With deposit rates at historic lows and inflation concerns growing in the minds of policy makers, there is now a real cost to inaction. For some charities, there simply is no alternative to cash. However, we believe care must be taken to avoid holding too much cash where it may not be necessary. 

Income

Charities that hold an investment portfolio will have noticed that the dividends received from their portfolio is lower than it has been in the past. Trustees should revisit the level of income provided by their portfolio and consider the benefits of funding some of their income requirements from the capital value of their portfolio. 

Confusing certainty for security

There are a variety of reasons why charities hold cash. Unquestionably, however, often a considerable portion of uninvested cash is not needed to meet short-term expenditure or liquidity requirements. 

All charities should have immediate liquidity requirements addressed as part of their reserve policy, meaning there are legitimate reasons for holding cash. However, to the extent that the amount of cash held goes beyond requirements for short term expenditure, the reasons provided are generally a variant on a constant ‘safety’ or ‘peace of mind’ theme. This is, however, confusing certainty for security.

•    Does cash provide certainty? Unequivocally yes. We are certain about the direction of deposit interest rates and that cash holdings will be negatively impacted.
•    Does cash provide security? Unequivocally no. The certainty of cash does not provide security against the real risk that charities face, which is the value of reserves – the primary threat to which is inflation.

Challenges and opportunities 

The extent to which the coronavirus pandemic has affected the charitable sector remains unknown, however, across the sector it is predicted that there will be a significant shortfall in income for 2021. It is now more important than ever for charities to be adaptable, agile, and resilient, particularly in the areas of strategy, governance, and finance.

During our discussion, we encouraged trustees to consider and reflect on the challenges faced due to the pandemic, cash flow issues and financial instability, and whether they have a detailed plan in place to help their charity to return to their pre-coronavirus financials and productivity.

Future planning is critical for the survival of the charity sector. We encourage charities to take this as an opportunity to consider any lessons learned from the pandemic, and if there are any better ways of working which have evolved.

Actions

•    Reconsider the short, medium, and long-term objectives of your charity and ensure that they remain appropriate in today’s environment.
•    Ensure that effective controls and adequate procedures are in place to encourage sound governance and that these are reflected in your policy documents. 

If you require any advice or a consultation on any of the matters discussed, please do not hesitate to contact us at:

This article was written in association with Worthingtons and Davy UK.

Warning: The information in this article does not purport to be financial advice and does not take into account the investment objectives, knowledge and experience or financial situation of any particular person. You should seek advice in the context of your own personal circumstances prior to making any financial or investment decision from your adviser.

The post Reserve Planning for Charities in 2022 appeared first on Worthingtons Solicitors.

Unlike company directors, shareholders do not owe a fiduciary duty to the company and can act in their own interests. We have prepared this guide to explain the various rights and remedies that are available to shareholders. 

The three main shareholder remedies include:

1. Derivative Actions

A derivative action may be brought for negligence, default, breach of duty or breach of trust by a director. The cause of action must be vested in the company and the relief must be sought on behalf of the company. A shareholder may therefore wish to take a claim against a director on the company’s behalf. It doesn’t matter if the director has not profited from their negligence. Such actions can also be taken against shadow directors and former directors. However, the complicated process often deters shareholders from seeking the remedy. The court must be satisfied that:

• A member seeking to promote the success of the company for benefit of members would not continue the claim; and
• The conduct has not been subsequently approved / authorised by the Company.

The member must be able to prove that the company has suffered a financial loss.

2. Unfairly Prejudicial Actions

A shareholder can apply to the Court for rectification if they feel the company is being run in a manner that is unfairly prejudicial to the interests of its members, or some of them. The prejudice must be substantial, and can either be financial, involve a member’s rights, such as creating more shares to reduce a minority’s decision-making power, or poor management or failure to abide by the company’s articles of association or the Companies Act 2006.

However, it is important to note that if the shareholder has enough decision-making power to solve the problem then the application will not succeed.

The options available to a court include making an order to:

• Restrain the doing of some act; or ordering an act to be done;
• Authorise a claim on behalf of the company;
• Change or prohibit a change in the company’s articles of association;
• Regulate company affairs/ future business; or
• Enforce a sale of shares.

The court also has a general power to make any orders it thinks fit to give relief to the members.

3. Winding up on Just and Equitable Grounds

The court can wind up the company where it has just and equitable reason to do so, on the application of a shareholder. Invariably, reasons for this include deadlocks in decision making, mismanagement, exclusion from management decisions or an inability for the business to continue.

Conclusion

Whilst there are three main remedies for shareholders, each of the remedies are limited by the strict criteria required under the legislation and are at the court’s discretion. Shareholders should therefore obtain legal advice if they are considering exploring any of the remedies mentioned above.

If you require any advice or assistance, please do not hesitate to contact us by e-mail at info@worthingtonslaw.co.uk or by telephone on 028 9043 4015.

The post Shareholder Remedies – A Guide to Your Rights appeared first on Worthingtons Solicitors.

Cryptocurrency is essentially virtual money in a digital currency. It can be used as a bank free method of transferring and obtaining wealth. It is stored in a digital wallet. Instead of relying on a ‘middle-man’ such as a bank, crypto holders can make peer-to-peer transactions through the use of private and public keys, and track information about such transactions and assets. One of its many appeals comes from the level of security it provides. Cryptocurrency uses blockchain technology. Blockchain is a system of recording information in a way that makes it difficult or impossible to hack or cheat. It is a self-maintaining database. A blockchain is a digital ledger of transactions that records the origin of a digital asset and ensures it cannot be double spent.

Examples of cryptocurrencies include:

• Bitcoin
• Ethereum
• Ripple
• Litecoin

Legal Challenges

Criminal proceeds

Cryptocurrency is difficult to regulate, partly because the new technology does not fit within traditional classifications. Cryptocurrencies can facilitate tax avoidance due to the traders of the product being able to remain totally anonymous. Crypto can also be used on the dark web to buy and sell illegal items, with essentially no way to trace them. Criminals also utilise cryptocurrency as an alternative to traditional methods of laundering cash from criminal proceeds. Just this month £180 million in cryptocurrency connected to illicit activities was seized in London.

Jurisdiction

Blockchain technology creates privacy for its users in that it does not pinpoint a ledgers actual location or country of residence. This makes it difficult to determine the governing law for crypto transactions. As crypto transactions span across multiple locations, the transactions may be subject to contradictory laws and frameworks.  This makes blockchain disputes particularly difficult to litigate.  

Traceability

The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 introduced Customer Due Diligence obligations on exchange platforms and wallet providers. The regulations require them to identify their customers using official documents and to monitor and report any suspicious transactions or customers. In Ion Science Ltd v Persons Unknown, a Bankers Trust Order was made against the exchange platforms, requiring them to disclose information about their customers. Sophisticated users will of course be able to obstruct traceability. As a result, tracers may require specialist firms that analyse the Blockchain and look for patterns in the data.

Data protection

Blockchain’s immutability is often presented as its main selling point, with many users drawn in by the promise of anonymity. Data recorded on the chain about transactions cannot be altered. Whilst this may facilitate the concept of trust in the system, from a legal standpoint it creates difficulties. If the data is an individual’s personal data, it cannot be amended or deleted at their request. 

Compilations of data also constitute property under common law. Therefore, a chain database containing the personal information of crypto users may be sold to a third party. However, if such a buyer wants to use the data for a different purpose, they must get consent from the individuals concerned to comply with data protection regulations.

Legal remedies

One of the main ways fraud victims can seek protection is by obtaining freezing orders and other injunctive reliefs. A freezing order over assets may be appropriate to protect assets which could otherwise be disposed of. Injunctions are often sought before a trial to prevent injustice in this interim period. When it comes to damages however, the extreme volatility of cryptocurrency will have a huge impact of the value. Unlike flat currencies, crypto is not regulated by the Central Bank.

Conclusion There is no doubt that cryptocurrencies are increasing in popularity. Although there is currently limited regulation of cryptocurrency exchanges and custodians, more regulation is needed to prevent money laundering, criminal activity and to identify risks. The lack of intermediary or exclusive authority to settle crypto disputes is of growing concern. There are no mechanisms in place to settle disputes given the decentralised nature of crypto and therefore it is difficult for victims to be compensated for losses especially given the volatility of crypto value.

If you require any advice or assistance, please do not hesitate to contact us by e-mail at info@worthingtonslaw.co.uk or by telephone on 028 9043 4015.

The post Cryptocurrency – a cryptic legal landscape appeared first on Worthingtons Solicitors.

A shareholders’ agreement is a contract between shareholders that regulates the relationship between them and forms the basis under which the company should be run. A shareholders’ agreement differs from the Articles of Association of a company in that it is a private document, and it does not have to be lodged at Companies house. Although there is no legal requirement to have such an agreement in place, it is an extremely useful tool in addressing all issues that can arise within a business.   

Top 10 reasons to enter into a shareholders’ agreement:

1. It can link shareholding to employment status

Shares may be held by employees and, often, shareholders of a company are also directors. A shareholders’ agreement can link shareholding to employment.  It can set out good leaver and bad leaver provisions, which describe the circumstances in which a person ceases to be an employee. If an employee leaves or is dismissed for whatever reason, the other shareholders will probably want to buy the shares back from the exiting shareholder, otherwise they may still be entitled to dividends after they leave.

Whether an employee is a good leaver or a bad leaver, will have a direct implication on the value of their shares.

2. It sets out what happens on the death of a shareholder

The shareholders’ agreement can set out what happens to a shareholder’s shares on their death. For example, the company may be content for the shares to pass in accordance with the deceased’s will, but there may be other circumstances where the company will want the option to buy the shares back rather than letting them pass on to someone else. Setting out this procedure can provide answers to difficult questions and give comfort to shareholders.

3. Dispute resolution procedure

Although you may start your business with the best of intentions, and indeed you may even start the business with close family members or friends, it is not uncommon for these relationships to break down. Such disputes can lead to costly and time-consuming litigation. Setting out a dispute resolution mechanism can help to mitigate the impact of any animosity between shareholders. It can help shareholders to communicate and resolve issues, or, if such issues cannot be resolved, it can set out what is to happen next (e.g., a buy out or winding up of the company).

4. Customised dividends policy

The shareholders’ agreement can set out different levels of dividends payable between the parties. This could be to reflect different classes of shares, shareholding, or investments in the business. 

5. Transfer of Shares

This clause within the agreement can give existing shareholders pre-emption rights over shares. This means that if a shareholder wishes to sell their shares, the shares firstly must be offered to existing shareholders.

6. Majority shareholder protection

A majority shareholder may wish to sell their shares, but quite often, buyers will want to buy the entire share capital of the company. The inclusion of drag along rights within the shareholders’ agreement can force minority shareholders to sell their shareholding too so as not to frustrate the sale process.

7. Minority shareholder protection

The shareholders’ agreement can outline a list of reserved matters that cannot be acted upon without the consent of all, or a specified majority of the shareholders. This will help to ensure that minority shareholders are involved with key decisions making processes that they may not otherwise have been privy to due to their smaller shareholding.

8. Restrictive Covenants

Existing shareholders may wish to prevent an exiting shareholder from setting up a business in competition with their company. It can be useful to include clauses within the shareholders’ agreement that will prevent an exiting shareholder from poaching clients, customers and employees from the business.

9. Confidentiality

Intellectual property and confidential information may need protected from unauthorised use. The shareholders’ agreement can include a confidentiality provision to prevent such information from being misused.

10. Set limits of control

The shareholders’ agreement can set out that key decisions will require the directors to obtain shareholder consent. This can limit the power of directors and provide the shareholders with greater control over the operations of the business.

If you would like to put a shareholders’ agreement in place to protect your business, please do not hesitate to contact us by email at info@worthingtonslaw.co.uk or by telephone on 028 9043 4015.

The post Top 10 Reasons Why Your Business Needs a Shareholders’ Agreement appeared first on Worthingtons Solicitors.

1. Considering an M&A transaction

Due Diligence

It is essential for buyers to carry out careful due diligence on how Covid-19 has impacted the target company.

Covid-19 specific concerns to look out for include:

• the impact of travel restrictions and social distancing
• compliance with all government regulations
• reviewing the terms of material contracts such as material adverse change and force majeure
• business continuity and disaster recovery plans
• data protection and privacy policies
• use of emergency funds
• can additional government funding can be utilised after completion?

Insurance policies may include protection for businesses that suffer losses due to mandatory closures. This should be considered along with any obligation on the target to mitigate losses.

2. Between negotiation and signing

Indemnities and warranties

Sellers should be frank in disclosing all Covid-19 related risks and financial projections. Buyers should obtain specific warranties to provide comfort against such risks and insist that warranties are repeated at completion.

Specific warranties about force majeure usage in contracts, government funding, and the use of the Furlough or Job Support schemes should be sought by Buyers. Any company considering selling over the next few years should keep diligent records of any decisions made during this time.

Buyers should ask sellers to provide indemnities to cover Covid-19 related liabilities.

If either party wishes to obtain warranty and indemnity insurance, they should be aware that if a deal has not yet signed, Covid-19 is now a ‘known risk’ and related issues may not be covered.

Pricing

Deals post Covid-19 might adapt to new pricing structures in line with market volatility, but if the deal was already announced parties may be stuck with the pre-coronavirus terms.

Buyers could insist on re-opening locked box or fixed pricing mechanisms and include earn out provisions or post-closing price adjustments. Sellers should try to cap the amount by which the price can be reduced.

Buyers may find it useful to defer payment of consideration to a later date and to take advantage of retentions. Sellers may be uncomfortable with this, but they can request that funds are held in escrow.

Buyers should be aware of all funding conditions and the fact that a change in long term stop dates could affect financing.

3. Between signing and completion

Interim covenants

Due to Covid-19, the period between signing and completion could be considerably longer than expected, therefore Sellers should be aware of interim covenants. Sellers should communicate with Buyers at an early stage if there is a chance that a covenant will be breached. If a breach does occur without the Buyer’s consent, it may give them a right to terminate.

What’s next?

In a pre Covid-19 world, share sale transactions might have been viewed as less risky than asset sales, but we could now see an increase in asset sales. The reduction of entrepreneurs’ relief from £10million to £1million has made share sales less attractive for sellers. This, alongside a buyer’s ability to ring fence liabilities in asset purchases, could see an increase in asset sales. 

Instead of M&A, companies might consider alternative transactions such as investing in hybrid instruments such as convertible or preference shares, or other transactions which will allow them to buy shares later.

Many deals have been aborted to allow businesses to focus on survival and to preserve cash. Covid-19 has undoubtedly slowed down the economy and changed our approach to M&A transactions.

If you require any advice in relation to commercial dealings please contact us on 028 9043 4015.

The post M&A Transactions during Covid-19 appeared first on Worthingtons Solicitors.

A fiduciary relationship reflects the highest degree of trust and responsibility under which a party is charged with duties of loyalty and care to another above its own interests.

The case concerned Children’s Investment Fund Foundation (CIFF), a charity with over $4billion in assets that aims to help children in developing countries. The members of the charity were a couple, Sir Christopher Honan and Ms Jamie Cooper, and a third member, Dr Marko Lethimaki. When the couple’s marriage broke down, difficulties also arose in the charity. It was agreed Ms Cooper would step away from the charity on the understanding that CIFF would make a grant of $360million to Big Win Philanthropy, a new charity set up by Ms Cooper with similar objects to CIFF.

Under Section 217 of the Companies Act 2006, the members of CIFF needed to approve the decision to grant the money. As both Sir Honan and Ms Cooper were conflicted, they contractually agreed not to vote on the matter. The decision was left to the only independent member of the charity Dr Lethimaki, who was undecided on whether to approve the decision.

The couple, at a stalemate, referred the matter to court for a decision. Initially, it was determined that the making of this grant was in the best interests of CIFF and Dr Lethimaki was ordered to vote in favour of it. However, the Dr Lethimaki appealed this decision to the Court of Appeal who held that the court could not order him to vote as he did not breach a fiduciary duty. Ms Cooper appealed this decision to the Supreme Court.

The Supreme Court held that members of charities are in fact fiduciaries and therefore subject to the control of the court. Therefore, Dr Lethimaki was obliged to vote in favour of the proposed grant. Although the courts usually take a ‘non-interventionalist’ approach, it determined that it could direct him on how to vote on the basis that it was in the best interests of the charity. The judges had different reasons for allowing the court to intervene in this manner. The majority held that as the matter was referred to the court, the court’s decision was binding on the trustees. The minority held that the Court would not intervene with fiduciary powers, save where there has been a breach of trust so substantial that it threatens the charity.

For those managing membership based charities the guidance and general conclusion reached by the Supreme Court is likely to cause some confusion.  Charity trustees will need to reflect on their current legal structures and consider whether change is necessary to allow members to perform their fiduciary duties. Charities that are the sole corporate member of another charity will need to consider whether it can properly exercise its membership powers in a way that is in the interests of the parent charity.

The Charities team at Worthingtons are here to answer any questions you may have considering this important judgment.  Contact us by email at info@worthingtonslaw.co.uk for more information.

The post Recent legal case highlights loyalty expected with charitable companies appeared first on Worthingtons Solicitors.

The Commission published guidance on its website on 29 June 2020 which confirmed that “If your charity was registered prior to the end of May 2019, the decision was made by a member of staff and not a panel of Commissioners and is therefore considered to be void at this time.”

The Commission emphasised that affected charities can “continue to operate as previously without any disruption to their operations” and that if an organisation is a charity in law as outlined in its governing documents, then the lack of registration will not prevent them from operating as such.

Many commentators in the sector are seeking clarity on how this affects charities moving forward. A number of questions have been raised about access to funding without a registered charity number and dealing with charity property. We have summarised the FAQs below:

Do I need to re-register my charity?

No, affected charities do not have to take any action at this time.

What are the funding implications?

The Commission is contacting funders and support bodies to clarify that the affected organisations are still charities in law. However, the Commission cannot direct such bodies on their decision-making processes. If funding is rejected due to the judgement, charities should contact the Commission.

Charities are also still entitled to use their charity number to apply for funding.

Will the register of charities be deleted?

No, but an explanatory note will be added to clarify where an assessment has been affected by the judgement. The affected charities will remain on the Commission’s website for transparency and accountability. 

Are charities still being registered?

Yes, albeit with delays. If a charity has been contacted to register, they must proceed as normal. The Commission has a target to complete 60% of all registrations within 7 months of receipt of a completed application.

Do charities need to comply with annual reporting?

There is no legal requirement for charities registered before the end of May 2019 to file annual reporting information with the Commission at this time, however it is considered best practice to do so. If registered after May 2019 then you need to comply with annual reporting as usual.

What is the future of charity regulation?

Charities can expect to see a reduction in the volume and punctuality of decisions made due to the size of the Board and the extent of work required. The Commission has had to adjust its procedures and is currently working with the Department for Communities to reach a permanent solution and will provide more information as soon as possible.

Charities that are unclear or experiencing difficulties are urged to contact the Charities team at Worthingtons Solicitors who are available to assist with legal advice and queries. (Telephone number: 028 9043 4015 or Email: info@worthingtonslaw.co.uk)

The post Thousands of NI Charities told registrations deemed unlawful after Court Ruling appeared first on Worthingtons Solicitors.

The rapid spread of Covid-19 has brought with it many economic challenges which have left company directors struggling to keep businesses afloat, weary of making decisions and in fear of breaching of insolvency legislation. Under the wrongful trading laws, directors can face disqualification and even be forced to make personal contributions towards the company’s assets.

On 14 May 2020, the UK Government extended the temporary suspension of wrongful trading liability until 30 June 2020. Originally the Government had announced on 28 March 2020 that it would introduce legislation, retrospective to 1 March 2020, to relax the insolvency rules which can make directors of limited liability companies potentially liable if they continue to trade and incur liabilities.

Although this will allow directors some breathing space to focus on business survival, directors should still be cautious when making decisions during this period, as other laws relating to fraudulent trading and disqualification are still very much in force.

Directors have a duty to act in the best interests of the company and take all reasonable steps to minimise losses for creditors. If a company goes into insolvency, the directors have a duty to act in the best interest of the creditors rather than keeping the company running. Some commentators suggest that it is likely that the Government will introduce safeguards to ensure some creditors eventually get paid.

In addition to the moratorium on forfeiture for commercial tenants and relaxed rules on AGMS and meetings already in place during Covid-19, it has been confirmed that Government will introduce new restructuring tools to the UK’s Insolvency Framework. Such tools include imposing a moratorium on creditors enforcing debts on companies while they are exploring restructuring options, protection of supplies for businesses facing an insolvency situation and a new court-based restructuring model.

It is hoped that these measures will come into force as soon as possible. The application of such measures to Northern Ireland will need to be embedded in legislation.

Practical Tips for Directors:

• Directors should ensure they keep a comprehensive record of all decisions made and reasoning behind them.
• Obtain professional advice if in doubt of personal or financial obligations to the company.
• If your company is nearing insolvency, consider all options available including formal and informal arrangements with creditors.
• Keep creditors abreast of supply chain issues and financial problems.
• Review all financial contracts to ensure no breach of covenants has or is likely to occur.
• Review business continuity plans and develop mechanisms to ensure all directors are aware of cash flow, budgets and financial concerns.   

If you are concerned about your company including queries about director duties, insolvency or any commercial legal advice for your business, please do not hesitate to contact us on info@worthingtonslaw.co.uk

The post Business Insolvency Laws Relaxed During Covid-19 appeared first on Worthingtons Solicitors.

We have created a bespoke Online Company Incorporation Service for business owners who wish to incorporate their company, without coming into our offices.

Our dedicated team will facilitate the formation of your company. Our Online Company Incorporation Service includes:

• Guidance on the type of company that best suits your business needs
• Advice on naming your company
• Appointment of directors and shareholders/ guarantors
• Minutes of first company meeting
• Model articles of association
• Memorandum of association
• Certificate of Incorporation

The Online Company Incorporation Service costs £180 plus VAT (total cost £216) and payment can be made via our website. To avail of this streamlined service, please do not hesitate to contact us on info@worthingtonslaw.co.uk.

The post Online Company Incorporation Service appeared first on Worthingtons Solicitors.

People are spending more time at home and online, and cyber criminals are taking advantage of holes within internet security systems and the lack of face-to-face interactions. Cyber criminals do not discriminate in who they target, and no organisation is safe.

It is now more important than ever to be vigilant about data protection and cyber security. Personal Data is defined by the ICO as “any information relating to an identifiable person who can be directly or indirectly identified in particular by reference to an identifier”.

With job losses, ill-health and domestic violence on the rise, and elderly and vulnerable people within the community becoming increasingly isolated, many are turning to charities, community groups and religious organisations for support. It is likely that the information obtained relating to Covid-19 will be deemed as ‘personal data’ or ‘special categories of personal data’.

This article outlines the guidance offered from the ICO on data protection, and a list of tips on how to protect your organisation while working from home.

• Privacy Notice

Organisations should have a written and up to date privacy notice that is clear and transparent. It should outline how personal data will be used, why it is needed and who it will be shared with. If your organisation does not have a written policy notice, you should ensure that there is someone in the organisation who can share this information verbally if requested.

• Sharing of Information

During this crisis, it may be more harmful not to share information than it is to share it. For example, where there are vulnerable people self-isolating in the community and their local council need to be informed. However, you should only share data to the minimum extent necessary.

Data protection legislation does not prohibit the sharing of information when it is appropriate.

• Legal

If you have consent to use personal data, a legitimate interest in using the data in a way which one would expect or if it is in the vital interests of an individual that you use their data, then it is likely that you can lawfully handle and share personal data. 

You should take extra precautions when using ‘special category data’.

• Security

Organisations should ensure software is up to date, review operating systems and ensure staff communicate securely.

Employees working from home should use strong passwords, back up information regularly and be vigilant when opening attachments in emails.

• Delete and Destroy

Employees working from home should work from softcopy where possible and delete personal information as soon as legally allowed.

Staff should dispose of all hard copy documents confidentially.

• Record Keeping

Organisations should keep a record of all decisions made that involve using personal information.

Where there has been a breach of data protection, this should be reported to the ICO and individuals concern. We encourage organisations to be vigilant and stringent in safeguarding personal data and internet security.

The post Data Protection and Internet Safety for Charities and Businesses during Covid-19 appeared first on Worthingtons Solicitors.