Case law: Failure to execute deeds properly could cost business £45m
It is critical for business owners, managers and other parties executing legal documentation to make sure they are executed in compliance with legal formalities, otherwise they could be invalid and unenforceable.
This update was published in Legal Alert - June 2014
Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.
Partners entered into 30 deeds under a partnership pension scheme, including deeds varying the scheme to provide for members’ contributions and stopping future accruals. However, the partners’ signatures were not witnessed as legally required, and scheme members challenged the validity of the deeds.
The High Court ruled in favour of the scheme members. It found that the failure to execute the deeds properly meant they were invalid - at a potential cost to the scheme of £45m, as well as other serious implications for the scheme and the company.
Disclaimer: This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.
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