In the past few years, several companies have experienced financial difficulties with their defined benefit private pension plans as a result of several factors including, in particular, poor investment performance due to falling stock markets, declining interest rates, the aging of beneficiaries and the increase in the number of retirees ...
The Bangko Sentral ng Pilipinas (BSP, the Philippine Central Bank) recently issued Circular No. 518, s. 2006, which authorizes banks to enter into joint venture agreements (JVA) with real estate development companies for the development of properties acquired by banks in settlement of loans and other advances, either through foreclosure or dacion en pago (ROPAs) ...
features 1. Modification of the Requirements for banks'shareholders. 2. Fiscal incentives for the development of the Forest Sector. 3. The unconstitutionality of the Bankcruptcy process in Nicaragua. 4. Right of priority. 5. Modernizing Legal procedures in Real Estate transactions. 6. Closing activities in the acquisition of properties. 7 ...
The considerable publicity surrounding the new Bankruptcy Act has focused on the impact of the legislation on individuals seeking bankruptcy relief under Chapter 7 of the Bankruptcy Code.1 There are also important changes that will have a significant impact on business bankruptcy cases. The new provisions will require suppliers, lenders, debtors, landlords and other constituents to rethink strategies that have previously been routinely employed in business bankruptcy cases ...
Recently, in Clark v. DaimlerChrysler Corp., the Michigan Court of Appeals ruled that an employee’s lawsuit for age discrimination under the Elliott-Larsen Civil Rights Act (ELCRA) was timebarred because of the six-month limitations period contained in the employee’s job application. The court upheld the contractual limitations period at issue even though the ELCRA explicitly provided that an individual has three years to bring a claim under that statute ...
Article 55 of Supreme Decree No. 21060 of August 29, 1985, established that both private and public entities could freely enter into or terminate labor agreements subject to the General Labor Law and its Regulatory Decree. Also, under article 39 of Supreme Decree No. 22407 of January 11, 1990, the voluntary hiring and termination of employees was established ...
The 'moral hazard' provisions introduced by the Pensions Act 2004 could cause extra headaches for many corporate transactions unless steps are taken early to avoid potential pitfalls. Parties involved in corporate mergers, takeovers or even group restructurings may now need prior clearance from the Pensions Regulator to avoid being potentially liable for contributing towards a deficit in the defined benefit pension scheme of the target or investee company ...
On 6 April 2006, new regulations, called the Transfer of Undertakings (Protection of Employment) – TUPE - Regulations 2006 came into force to replace the well-known 1981 Regulations. These are the Regulations that make provision for protection of employees – from dismissal and in their terms and conditions - where a business is transferred from one company to another. TUPE 2006 differs in a number of ways from the 1981 Regulations ...
In recent times, the issue of post-retirement healthcare benefits has taken on new significance for employers and sponsors of pension and health and welfare plans. Factors such as increasing numbers of retirees, rising drug and healthcare costs and government cutbacks to universal healthcare programs are causing organizations to re-evaluate the extent to which they can or are willing to continue to provide post-retirement healthcare benefits ...
In a judgment rendered on February 7, 2006, the Quebec Court of Appeal reiterated the obligations of the employer and the employee to play a role in seeking a reasonable accommodation. In cases where a collective agreement exists, the union has the same obligation ...
The phenomenon of personnel agencies Generally, Labour Relations laws assume the interaction of two parties, an employer and an employee. The employee offers his services, for pay, to an employer, who determines the working conditions and ensures discipline. This is a bipartite relationship. However, when a business entrusts the management of its human resources to a personnel agency, there is a tripartite relationship ...
From 1 October 2006, new legislation comes into effect intended to combat age discrimination. During a recent series of seminars, commercial law firm Shepherd and Wedderburn carried out a survey of delegates to understand employers' concerns and see what efforts they are making to take the new law on board. More than one in four delegates claimed they themselves intended to work past the anticipated default retirement age of 65 while a further 15% were unsure ...
Under the Rules Governing Offshore Funds of August 2005, private placement of offshore funds may only be offered to: a) banks, bills companies, securities companies, trust companies, insurance companies, financial holding companies or other legal entities or organisation approved by the Taiwan Financial Supervisory Commission (FSC); b) not more than 35 “private investors” ...
The Law Reform Commission (Commission) published a report on 25 October 2005 recommending proposals to reform the doctrine of privity of contract in Hong Kong. The aim of the reform is to allow a person who is not a party to a contract to enforce the contract if that was the intent of the contracting parties. Under the existing doctrine of privity of contract, a person cannot acquire and enforce rights under a contract to which he is not a party ...
Investors, investment managers and others with direct or attributed interests of 5% or more of any Hong Kong listed company are subject to Hong Kong’s substantial shareholder disclosure regime. Inadvertent breaches of the regime are common, largely because of its complexity and investors’ misapprehensions of the requirements. A review of enforcement actions over the last year indicates an increasingly aggressive approach by the Hong Kong Securities and Futures Commission (SFC) ...
An exemption from “acting in concert” is available under the Hong Kong Codes on Takeovers and Mergers and Share Repurchases (Takeovers Code) to entities within a large financial group which manage investment accounts on a discretionary basis and which maintain acceptable levels of segregation regarding confidential information through Chinese Walls ...
The UK's Financial Services Authority (FSA) has issued a Feedback Statement on its discussion paper DP05/4 "Hedge funds: A discussion of risk and regulatory engagement" and has urged firms to focus on the risks posed by side letters "which will remain an area of supervisory focus". Side letters have become a common feature for institutional investors investing in hedge funds with the result that such investors receive preferential treatment and more information than other investors ...
At its Singapore 2006 AGM, ISDA announced the publication of a new set of definitions – the ISDA 2006 Fund Derivative Definitions (Fund Definitions). The Fund Definitions are intended to provide basis terminology for use in confirmations of derivatives transactions linked to interests in various types of pooled investment vehicles, such as hedge funds and mutual funds, for which a liquid secondary market may not exist ...
On St Patrick’s Day the Irish Revenue Commissioners issued a communication, through CREST, in relation to CFDs. In the communication the Revenue said they believe the underlying hedging transaction behind a CFD, where the broker acquires Irish shares, may not fall within the relevant stamp duty exemptions that the brokers are claiming. If the Revenue are correct the broker has a 1% stamp duty liability on this hedging transaction ...
This paper appears in the March 24, 2006 issue of The Lawyers Weekly, published by LexisNexis Canada Inc. Over the past few years, courts in Canada have faced the apparent conflict between competing statutory mandates with respect to class proceedings and arbitrations. In Ruddell v. BC Rail Ltd., 2005 BCSC 1504, Mr. Justice Holmes of the British Columbia Supreme Court reviewed this conflict in the context of pension litigation ...
The Court of Final Appeal made a landmark ruling at the end of February on an unprecedented claim for holiday pay or annual leave pay based on commission in Lisbeth Enterprises Limited v Mandy Luk. The Court concluded that, apart from the contractual commission which accrued and calculated on a daily basis in amount varying from day to day, no commission is to be included in the calculation of holiday pay and annual leave pay ...
Doctors working in public hospitals claimed that, in breach of their employment contracts as well as the Employment Ordinance, for many years the Hospital Authority had required them to work long hours without proper compensation. The doctors in this latest round of confrontation with the HA successfully claimed compensation for "rest days" and "holidays" for which they had been deprived but lost their claim on compensation for "overtime" worked ...
Introduction Since June 1, 2004, the Labour Standards Act (hereinafter the “L.S.A.”) requires employers to provide a work environment free from psychological harassment. Thus, employers must, as a first step, take reasonable measures to prevent psychological harassment and then, whenever they become aware of such behaviour, put a stop to it. These duties imposed on employers are obligations “of means” as opposed to obligations “of result” ...
China presents enormous opportunities for the wealth management industry. Since the opening up of China’s banking and other financial industries to foreign investments, foreign banks, securities companies, insurers and fund management companies have sought to establish presence in this market through the setting up of representative offices, branches, foreign direct investments and joint venture companies ...
