Laying down the rules for e-mail
NM writes: I am introducing e-mail into my business. Will I be able to
monitor how employees use the system to make sure it is not being abused?
You will need to lay down rules on how e-mail is to be used,writes Peter Done,
managing director of Peninsula. First, consider implementing an e-mail and
internet policy that introduces rules on the general use of e-mail for both
internal and external communication. Decide whether personal use will be
banned, limited or freely available.
Lay down when and where e-mail can be used, and specify the consequences of
misuse of the system, including what disciplinary action will taken. You
will also need to consider best-practice procedures, such as e-mail headers
and points of etiquette.
When it comes to monitoring e-mail, you have a legal responsibility to protect
your staff from harassment, bullying or offence. Your internal e-mail should
be considered as another way in which staff can communicate with each other,
and the same principles that apply in other forms of communication apply to
e-mail.
Remember that an employer’s right to monitor e-mail is a complex issue and
various laws protect the e-mail user. Therefore any monitoring should be
carefully considered and implemented. Take reasonable steps to let staff
know that e-mail is being monitored and tell them why this is necessary. If
you can justify monitoring, you will usually not need the consent of
individual members of staff – for example, to pick up messages when someone
is away from work.
If e-mail policies and procedures are abused or breached, you must take
appropriate action. So make sure that your disciplinary procedures are both
clear and up to date after you implement your e-mail and internet policy.
Best way to close a firm
NW writes: I recently sold my travel business to a competitor. The business
was a limited company but the acquirer bought the trade rather than my
shares. I now wish to close down the limited company. Its net assets are
£300,000, which is made up of our share capital of £50,000 and retained
earnings. What is the best way to close the company and return these funds
to shareholders?
The normal route is for you to use the Inland Revenue extra statutory
concession C16, which with their agreement will allow you to distribute the
accumulated profits of your business as a capital dividend, writes Chris
Lane, partner at Kingston Smith LLP. This would mean that the accumulated
reserves of the business will be taxed as a capital gain rather than as an
income dividend.
Unfortunately, share capital cannot be dealt with in the same way. A formal
liquidation is one solution to returning the share capital to shareholders
but will, of course, involve liquidation costs. Another option is to apply
to the court to reduce the share capital of the company. This effectively
increases the company reserves, but again there are legal costs as well as
possible delays.
A new and easier solution, however, will be available for private companies
from October 1. The Companies Act 2006 proposes an alternative to applying
to the courts when you want to reduce a company’s share capital. All that is
required is a special resolution of shareholders and a solvency statement
given by all the directors. This new procedure will be quicker and cheaper
than the other approaches.
If you are able to wait until the new law comes into force, you can reduce the
share capital and then pay out a capital dividend. Once this has been done,
you can apply to have the company struck off the register at Companies
House.
Kingston Smith LLP, the chartered accountant, and Peninsula, the
employment-law firm, can advise owner-managers on their problems.
Send questions to The Business Doctor, The Sunday Times, 1 Pennington
Street, London E98 1ST, or fax to 020 7782 5765. Advice is given without
legal responsibility.
bizdoc@kingstonsmith.co.uk
