Layna Thompson – I instructed Layna for selling my property and purchasing another. I have nothing but praise for her by the way this all has been handled from start to nearly finished. I have been kept informed all along the way.And would highly recommend Palmers.
Jamie, ReviewSolicitors
Farah Mahfooz – Farah has been amazing for me. In possibly the hardest time of my life in fighting for access to my children. Farah has first shown kindness, support and guidance. Farah has been professional and her knowledge got me the best outcome. I can’t recommend Farah highly enough.
Wendy, ReviewSolicitors
Brooke Barns – highly recommended. I have used Brooke for
Many private house purchases and sales and also through a Ltd company, every time Brooke handles everything with ease, she is exceptionally efficient and extremely professional.
Mr A, Essex
Lisa Judd – Lisa provided calm and reassuring assistance during what was a difficult and unknown period relating to the cessation of my employment. Her experience and skill helped to negotiate a much more favourable outcome for me for which I am very grateful.
How can security against a loan be released?
When you take out a commercial loan, you may have to put up some assets as security against the loan in case there is a default on the loan.
This gives a lender the right to claim the asset and sell it to recover what they have lent to you.
However, in some situations, you may seek to release the security and gain full control over your asset again.
When would security be released?
Security on a loan may be released in a number of circumstances, including:
- Repayment – If you have repaid the loan, then you have the right to seek release of your asset, provided you have satisfied all other conditions.
- Refinancing – You may have the option to refinance the loan, which may adjust the collateral needed.
- Substitution – In some cases, the lender will accept a substitute security if both parties agree, although this is less common.
The most common scenario is that security is released once you have satisfied all conditions relating to your loan, including full repayment with any relevant interest and costs.
How do I release my security?
This will depend on the type of security, but generally you will require some signed documents, such as Form DS1 or a deed of release, from the person to whom you have granted security.
A deed of release does what it says on the tin – releases you from your legal commitment to provide security to your lender once the loan has been repaid.
Form DS1 may be used to release you from security on a property, which will need to be submitted to HM Land Registry.
If your company has provided the security, any deeds may need to be submitted to Companies House.
If this is straightforward and the lender cooperates, the cost for this is likely to be in the region of £600 to £900 (plus VAT and disbursements) as a minimum.
In more complex circumstances, costs can rise quickly, so it is important that you seek advice from an expert when seeking to release security on a loan.
For advice on drafting and signing commercial loan agreements, please contact Dashna at DashnaMorarji-Sagoo@palmerslaw.co.uk or by calling 07903 631780.
What happens when an employee is accused of embezzlement?
Embezzlement, the misappropriate or misuse of company funds by an employee, is a serious allegation, and its impact on businesses can be significant, ranging from financial losses to reputational damage.
If an employee is discovered to have embezzled money from your company, you must act swiftly and carefully to protect your interests and ensure you do not land in legal difficulties.
What action should I take?
When embezzlement is discovered, it is important to take immediate action to minimise financial loss and damage to your reputation.
The key steps to take are:
- Investigation – You should launch an internal investigation to obtain the facts, including a review of financial records, interviewing witnesses and speaking to your employment law team, as well as a commercial law specialist.
At an early stage in the investigation process, consideration should be given to suspending any suspected staff to prevent them interfering with an investigation or concealing evidence and to minimise the opportunity for further losses.
- Disciplinary action – After completing your investigations and consulting with HR and your legal advisers, there may be a case for commencing disciplinary proceedings against any staff who appear to have been complicit in any wrongdoing or have not adhered to any fraud prevention policies/procedures. Any disciplinary action should be conducted in accordance with the ACAS Code on Disciplinary & Grievance Procedures and company policies/procedures.
- Reporting – Embezzlement is a crime so, if it is discovered and reasonably confirmed, you should consider reporting it to the relevant authorities. There can be liability for organisations whose managers choose to turn a blind eye.
- Managing potential reputational damage – You might wish to consider whether any additional public relations services are needed.
- Recovery – You may consider taking civil action to recover misused funds and consider whether you have any relevant insurance cover.
- Review – You should review your internal processes and strengthen controls to ensure this does not happen again.
Employers must tread carefully when dealing with allegations of embezzlement.
Accusing an employee without evidence or mishandling the investigation could lead to legal claims including wrongful dismissal, unfair or constructive unfair dismissal, or defamation.
Particular care is needed when there might be a concurrent criminal or regulatory investigation to avoid jeopardising a potential prosecution.
Consulting employment, commercial and even criminal specialists as appropriate at each stage is critical to ensure the correct procedures are followed and the business is protected from further risks.
For more information or to discuss your specific concerns, contact us today.