Local directors warned of pitfalls

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Leading solicitors' firm brief Chambers of Commerce

On 17 May 2005 the Hounslow Chamber of Commerce, in conjunction with the Hammersmith & Fulham Chamber of Commerce, hosted a legal breakfast seminar at The Grove restaurant in Hammersmith Grove, London W6 on the subject of “Pitfalls for Directors”.

The seminar was presented by Mark Clark and Richard Beresford, solicitors with Chiswick-based commercial law firm Solnick & Co. In this highly informative talk, presented in a straightforward, easy-to-understand manner and accompanied by comprehensive written notes, Mark and Richard highlighted a number of salient points relating to the risks of personal liability faced by directors of private companies.

Many directors are unaware either of the extent of the risks involved, or of the implications of personal liability. Setting up a company in the UK is a relatively simple and inexpensive process, but according to the speakers, an unwelcome side-effect of this is that many directors mistakenly assume that the personal exposure faced by Directors is insignificant.

Among the topics covered were: directors’ statutory duties, liability for breach of “fiduciary” duty, insolvency and disqualification orders.

Mark and Richard emphasised the need for directors to become aware of their basic obligations under company law. The seminar was intended to go some way towards addressing this need, but those attending were urged also to make full use of the wide range of sources of helpful information contained in reference books and websites (e.g. www.companies-house.gov.uk, www.dti.gov.uk and www.iod.com) and of course Solnick & Co, Mark and Richard can be contacted on 0208 995 9286.

A number of other representatives from Solnick & Co. were on-hand to answer queries and a lively question-and-answer session continued over breakfast.

Hounslow Chamber has also ran another of its business-networking seminars for new and recently joined members. The two-hour seminar on 11th May, geared for 8-10 members at a time, with the small numbers ensuring a productive and personal forum, was aimed at small businesses, which would like to be more effective and comfortable in a variety of business networking situations. Successful self-promotion of your company is a great way to build long-term relationships and secure business.

Steve Mathews of Barnes Business Consulting led the seminar and he stressed the importance of preparing for an event and once there the importance of listening and building up rapport. In fact he defined ‘networking’ as building up relationships. To quote Rachel Wates, dance therapist, who joined the Chamber in September and who attended the seminar, ‘Things are clarifying for me, which is great, and it’s exciting to be coming into contact with such a thriving business network in the area.’ The seminar will be repeated soon.

June 1, 2005