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The Key to Company Protection

Article Abstract:

The insurance industry has responded with a variety of flexible insurance packages. The departure of a senior staff can be disastrous for a company. Under permanent health insurance, seventy-five per cent of salary of a senior staff would be payable after the deferred period. If a permanent health scheme is set up for employees, the premiums are deductible in computing profits and are not assessable as the employee benefit. Under keyman assurance, the possible loss of profitability by the death of keyman is covered. One of the disadvantages of existing pension schemes is that once contributions are paid, it is inaccessible until death or retirement. Life offices have recently provided a scheme with loanback facility. Payment of capital transfer tax on the death of a director is disastrous if no arrangements are made for it. Life offices provide a scheme under which a trust is created to alleviate the problem.

Insurance, Compensation and benefits, Health insurance

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The Purchase of Private Company Shares

Article Abstract:

The Companies Act 1981 includes provisions which allow companies to purchase their own shares. This is valuable for closely-held private companies. The procedure involves first, amending the memorandum and Articles of Association to allow the company to purchase its own shares. Payment must actually be made, out of profits. Purchase can be made out of capital with special conditions. Caution should be used when examining this option due to taxation problems. It is still unclear how this purchase would affect taxation. Special tax treatment is discussed under Finance Act of 1982, Section 53 and schedule 9. These are discussed in light of this purchase. Life insurance for a director to finance a company's purchase of its share on his death is considered. Tax consequences must be carefully considered. For closely- held private companies a single policy is advised.

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Efficient Fuel Management

Article Abstract:

Cost control management of a fleet of cars is crucial, but difficult. Approximately twenty per cent of charges are found to be for extras, not fuel or maintenance of vehicles. Many companies are turning to outside help. The services available can include a voucher system, records by the car of mileage costs, and statistics on maintenance. Cost for services varies. Service stations may be far apart which will use a certain charge card and charge cards are not long-term credit cards. Invoices are to be paid on time.

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