Court of Appeal re-affirms the test for offer and acceptance

In the recent case of Crest Nicholson (Londinium) Ltd v Akaria Investments Ltd [2010], the Court of Appeal was once again tasked with confirming the proper test for offer and acceptance.

This article will provide an overview of the rules of offer and acceptance, in addition to a brief review of Crest Nicholson, and key points arising for practitioners and their clients. 
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Companies Act 2006: is your house in order?

As 2009 draws to a close, the dust is now settling on what has been a very busy few years for UK company law. The Companies Act 2006 (the 2006 Act) represented the biggest overhaul and update of UK company law for decades, since its predecessor, the 1985 Act, was really only a consolidation of the existing laws. The 2006 Act took over three years from royal assent to final implementation, with the final parts of the 2006 Act coming into force in October 2009, when most of the remaining provisions of the 1985 Act were repealed. Given that the 2006 Act was proposed by the Department of Trade & Industry, initially implemented by the Department of Business Enterprise and Regulatory Reform, and finally implemented by the Department of Business Innovation & Skills, it is not surprising that it has been amended already, particularly to take account of changes to EU law such as the Shareholder Rights Directive.

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Foreign branch taxation reform

In its June 2010 Budget the Government announced several proposals as part of a five-year plan to reform corporation tax, including a proposal to exempt foreign branch profits from corporation tax. This followed the previous government’s announcement in the 2009 Pre-Budget Report that it recognised foreign branch taxation as a ‘matter of growing importance’ and intended to engage with businesses to explore potential future rule changes. A discussion document setting out the proposal for such an exemption and key issues arising from it was published on 27 July 2010, alongside the reform of the Controlled Foreign Company (CFC) rules.

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Takeover Code consultation: response statement

On 21 October 2010, the Code Committee of the Takeover Panel issued the response statement to its Public Consultation Paper (PCP 2010/2), ‘Review of Certain Aspects of the Regulation of Takeover bids’, which was published on 1 June 2010. The consultation was the culmination of a process started by the Code Committee of the Takeover Panel at the beginning of 2010 in response to public and press comments on issues relating to the operation of the Takeover Code in the Kraft Foods Inc takeover bid for Cadbury plc. At the time, suggestions for changes to the Takeover Code were also made in speeches by the then Secretary of State for Business, Innovation and Skills, Lord Mandelson, on 1 March 2010, and by the then Financial Services Secretary, Lord Myners, on 8 March.

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Rights of audience: does age matter?

The recent decision in UK Bankruptcy Ltd [2010] has once again highlighted the different approach taken by the jurisdictions of Scotland and England. Although not separated by any physical boundaries the decision of the Inner House in UK Bankruptcy Ltd, which concerns the rights of audience of companies in Scotland, shows there are perhaps some lines that will just not be crossed.

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Legitimate expectation representations and conspicuous unfairness

As the effect of public sector budget cuts begin to bite, companies and other institutions involved in projects with public bodies will look to judicial review as a possible way of protecting those projects or salvaging something from the wreckage if funding is pulled. The recent decision in R (on the application of Grimsby Institute of Further and Higher Education) v Learning and Skills Council (LSC) [2010] illustrates very clearly the difficulties that are likely to be involved in doing so.

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