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Visit Our Archive for previous newsletters covering Hospitality, Recruitment, Intellectual Property, Food & Drink, Commercial Property, Employment, Hotels, Restaurants, Start Ups and many other topics
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Quick Links
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Visit Our Archive for previous newsletters covering Hospitality, Recruitment, Intellectual Property, Food & Drink, Commercial Property, Employment, Hotels, Restaurants, Start Ups and many other topics
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Find Previous Featured Articles | |
July 2012
Hedging, LIBOR and Why Canadian Banks Are Setting Benchmarks
June 2012
May 2012
Employee Incentives and Share Option Schemes
April 2012
Hotels
March 2012
Marketing
February 2012
International Services
January 2012
Contract Law
December 2011
November 2011
Recruitment
October 2011
Intellectual Property Update
September 2011
Commercial Disputes
July/August 2011
Holidays, Gym Memberships, Nights Out
June 2011
Social Media and Comparative Advertising
Visit Our Archive for previous newsletters covering Hospitality, Recruitment, Intellectual Property, Food & Drink, Commercial Property, Employment, Hotels, Restaurants, Start Ups and many other topics |
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Dear Subscriber,
Welcome to our August newsletter.
The last few weeks have seen London hosting one of the world's largest sporting events. Needless to say, at Fortune Law we, along with the nation have been captivated by the London 2012 Olympics.
Click here for some Golden Moments courtesy of the BBC - http://www.bbc.co.uk/sport/0/olympics/19235184
When not sunning ourselves at the beach volleyball, doing the Mobot, or losing our voices whilst watching the 100m final, we have actually been considering the legal implications of the Games. Honest.
In light of Olympic fever, this month our newsletter will focus on the legal issues involved with such a high profile event, and will include the following articles:
- Olympics and The Bribery Act
- A Special Extended Q&A With Client of the Month Ksenia Jones, of Eyehorn Farm, Kent, the official pre-training yard for the Russian Equestrian Team 2012
- London Olympics 2012 - things you never knew you never knew
Now all we need do is sit back and wait for the Superhumans. Enjoy your summer.
If you have any queries or need advice in relation to any of the matters set out in this newsletter or any other legal issues, do not hesitate to call us on 0207 440 2540 or e-mail us at info@fortunelaw.com. We are always happy to help.
Further information
Fortune Law provides businesses with "a one stop shop" service dealing with commercial property, commercial litigation, employment, corporate and commercial law. We can also provide a dedicated service for international clients and we specialise in the hospitality sector.
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Shainul Kassam
Fortune Law Solicitors |
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The London Olympics And Compliance With The Bribery Act
In recent times there has been a greater scrutiny about bribery in the context of corporate transactions and hospitality. Indeed we covered this in our article for the Law Business Review (link is here.)
Since large events tend to involve corporate sponsorship and corporate hospitality packages, what is permitted under the Bribery Act 2010 including possible sanctions have been key considerations for employers.
Indeed, we have seen many reports of executives refusing Olympic tickets and hospitality afforded to them for fear of being in breach of the new legislation. Are those fears real or unfounded?
Background
The Bribery Act 2010 ("Act") came into effect on the 1st of July 2011 and replaced the common law provisions for bribery, and replaced them with the criminal acts of bribery, being bribed, the bribery of foreign public officials, and the failure of a commercial organisation to prevent bribery on its behalf. The Act affects all companies who do business in the UK whether incorporated here or not. Therefore the Act affects any company operating in the UK, but in particular those:
- With an international aspect to their business;
- Who do business with large international companies or public authorities;
- Work in a sector or country with high levels of corruption.
The Offences
The three primary offences, as set out in the Act are:
1. Paying or receiving a bribe
An offence will be committed if a person offers another person a financial or other advantage if the person receiving the financial advantage is carrying out a function on behalf of an organisation where they are in a position of trust, good faith or expected to act in an impartial way. There is also a requirement that the person offering the advantage has the intention of getting them to perform their function in an improper manner.
2. Bribing a foreign public official
An offence will be committed if a person offers a foreign public official a financial or other advantage with the intention of influencing the official and obtaining an advantage in the conduct of business.
3. Corporate offence of failing to prevent bribery
A company will commit an offence if a person associated with it bribes a third party with the intention of obtaining or retaining business or obtaining an advantage for the company.
Corporate Hospitality and the Olympics
The first key point is that the Act applies to any conduct within the UK. Therefore, any hospitality offered during the Olympics would satisfy the jurisdictional requirements of the Act, regardless of whether the company has been incorporated in the UK.
Although the Serious Fraud Office have confirmed that corporate hospitality invitations to sporting events would not be investigated, caution has been exercised which may have had a bearing on some of those empty seats we have seeing. Companies have taken advice on their position, given that not only are the tickets for Olympic events expensive, but they are scarce adding to their value.
Furthermore, UK regulators have indicated that corporate hospitality packages may breach the Act if they are "intended to induce conduct that amounts to a breach of an expectation that a person will act in good faith, impartially, or in accordance with a position of trust." The requirements are even lower for public officials, as the only requirement is the intention to influence an official to obtain a business advantage.
There is an argument therefore for playing it safe. On the other hand, proportionality is important. Provided that a company has a specific policy set for its executives regarding client/supplier invitations and also sets a budget for reasonable spend (not overly lavish) then there is no real reason to treat this event differently to any other.
If you would like further information about commercial hospitality in light of the Bribery Act 2010, Fortune Law has the necessary expertise and experience to advise you on your position. For further information, please get in touch by telephone on 020 7440 2540 or by e-mail at enquiries@fortunelaw.com
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Featured Client: Eyehorn Farm, Kent
www.eyehornfarm.co.uk
 | | Ksenia Dyshaev-Jones |
Q & A With
Ksenia Dyshaev-Jones , Eyehorn Farm, Kent.
Q. Ksenia tell us about your business in a nutshell?
A. After successfully running an equestrian centre abroad for a number of years, my husband Nick and I decided to pool our experience and invest in setting up a five star equestrian training facility in the Kent, UK.
It has taken us over a year to bring the yard to a five star level, however all the hard work was rewarded when we were picked by the Russian Equestrian Federation as the official pre-training yard for the Russian Equestrian Team 2012.
After we complete the construction of our all-weather gallop and launch this September, our primary objective is to train racehorses both for flat and national hunt racing. However, the yard is very spacious and we had no problem accommodating the Olympic team and their horses for the duration of the Games 2012. Sometime in future we also hope to develop a small stud, where we will breed our own horses.
Q. What facilities did you have to provide?
A. There was an official process we had to go through to get the "nod". I can honestly say however, that it happened because we were the best in terms of location, price and facilities.
There has been much written about our yard resembling a horse spa, with the indoor and outdoor floodlit arenas, specially built horse solariums and showers - but you have to treat horses with care and respect if you are aiming to get the best out of them. This is especially the case with Olympic horses, who like all expensive horses seem to be aware of their worth!
Q. Did you watch any of the Olympic equestrian events?
All of the equestrian events took place in Greenwich, which is very close to us here at Eyehorn Farm, and we were very lucky to witness Team GB take silver in team eventing as well as gold in team show jumping and individual and team dressage! It was raining gold medals!
The Russian team were not in the running for the medals, as equestrian sport over there is still in developing stages, it's not as mainstream as say gymnastics, or ice-hockey. But they did extremely well, and most importantly came back safe and sound, both riders and horses.
Q. How did you both arrive at this profession?
A. Nick was a professional show jumper in his youth and has trained both horses and riders to a very good level. He was also the founder of the first equestrian yard in Siberia (where he is from), and is on the board of Directors of the Siberian Equestrian Federation.
My background on the other hand is completely different. I always loved horses and classical music and originally trained as an opera singer, graduating from The Royal Academy of Music, London. I also worked as a TV journalist for a number of years, which brought me over to work in Russia. At one point I was offered to take on the role of press secretary for a major international equestrian championship, and this eventually pushed out all other pursuits - and I haven't looked back since.
Q. In your opinion what are the most important factors when starting up a business such as yours?
A. My husband and I agree on something (for once), that you can build the most amazing yard with all the facilities in the world, but if you haven't got the right team working with you, it's all just a matter of time before things start to unravel.
As one would expect we have an excellent trainer, farrier, vet, and stable staff, however our legal support are just as important.
"From the very beginning we have been working closely with Shainul Kassam from Fortune Law, who is a great person to have on your side. She has helped us with numerous legal procedures and documents, and we feel that she is an indispensable part of the Eyehorn Farm story so far." |
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London Olympics 2012 - Things You Never Knew You Never Knew
Sunday Trading
Current Sunday trading law restricts large shops (those with a floor space of more than 280mē) from opening more than six hours on Sundays between the hours of 10am and 6pm. In readiness for the Games and in order to show the world that Britain is open for business the Sunday Trading (London Olympic Games and Paralympic Games) Act 2012 was fast tracked through Parliament and came into effect on 1 May 2012. This new legislation places a temporary suspension on the current rules permitting large shops to remain open for longer on the eight Sundays that fall during the London Olympic and Paralympic Games. This applies to all large stores across the country.
If relaxation of the rules proves to be successful, this temporary change could be the first step towards a permanent change in the law.
The regeneration of East London
Whilst most are aware of the iconic buildings found within the Olympic Park such as the Aquatics Centre, Stadium and the Velodrome, London 2012 has also brought about a number of less obvious wider regeneration benefits on a social, environmental and economic scale. Many of these have been secured through the planning system in the form of section 106 agreements and conditions attached to London 2012 planning permissions granted.
Prior to the Olympics, parts of East London had been subject to heavy industrial uses, high unemployment and economic inactivity. The Games have therefore contributed to the much needed regeneration of this area. Many local jobs and employment opportunities have been created and local residents as well as the wider public will have access to sports and leisure facilities. In addition, planning agreements and permissions have prompted the remediation of large areas of previously contaminated land, carbon reduction and the construction of sustainable new buildings.
Once the Paralympic Games have finished, the Olympic Park will be transformed in accordance with the Legacy Masterplan. Therefore we should see a number of venues and facilities remaining open as well as new waterside habitats and public open space being created.
Tax implications
Generally, non-UK resident sportsmen and women competing in the London Olympics would be subject to UK income tax on any income they earn relating to their performance. This includes payments for competing, sponsorship and endorsement income as well as payments for interviews and television appearances related to their performance. Those making such payments would be legally required to withhold UK income tax from the payments.
A special exemption however was insisted on by the International Olympic Committee for overseas competitors so that the normal rules are suspended for a period covering the Olympics. This exemption only applies to payments earned between 30 March 2012 and 8 November 2012 under contracts entered into before 25 July 2012 (for an Olympic sporting event) or 29 August 2012 (for a Paralympic sporting event). Unfortunately this exemption only applies to those competitors travelling to the Games and not Team GB who will still have to account to Mr Osborne.
The Olympics and intellectual property
The Olympic rings are perhaps the most recognised symbol in the world. With an estimated global audience of 3.9 billion viewers in 220 countries, it is therefore of no surprise that many businesses try to associate themselves with the Olympic brand. Such businesses should however be aware of the law. Most terms and logos related to the Olympics are registered as UK or Community trademarks. In addition, the Olympic brand is protected under copyright, design right, passing off and trade descriptions legislation. The London Olympic Games and Paralympic Games Act 2006 also prevent any unauthorised association with the Games and introduce "listed expressions" which prohibit the use of certain words.
Organisers of the Olympics have been very conscious of the need to maintain exclusivity for the main sponsors who have invested substantial sums of money for that exclusivity. Intellectual property law relating to the 2012 Olympics is therefore very restrictive and all businesses should be aware of what they can and cannot do.
If your business is affected by any of these issues, Fortune Law has the necessary expertise and experience to advice and help. Please get in touch by telephone on 020 7440 2540 or by e-mail at enquiries@fortunelaw.com. |
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