ICAEW.com works better with JavaScript enabled.

Continue reading

The value of a commercial agency

Litigation arising from the termination of commercial agencies is becoming increasingly common and compensation claims can sometimes be substantial, writes Roger Isaacs, Partner at Milsted Langdon LLP, who was involved in a recent case which settled at mediation for a seven-figure sum.

While politicians continue to debate whether the UK should remain within Europe, our laws continue to be influenced widely by the adoption of European Regulations that can often be an anathema to long lines of jurisprudence. A stark example is the application of the Commercial Agents (Council Directive) Regulations 1993 (the Regulations) that govern the relations between commercial agents and their principals.

The relevance of the Regulations to forensic accountancy arises in circumstances where the termination of a commercial agency triggers statutory compensation. The concept of statutory compensation is not unusual in other jurisdictions but in England and Wales, while employees and consumers have long enjoyed statutory protection, it is relatively unusual for a statutory regime to interfere in commercial relationships.