Pearse Trust Blog

Memorandum of Wishes – Key Considerations for Settlors and Trustees

Posted by Pearse Trust on Wednesday, Sep 28, 2016

A memorandum of wishes, also referred to as a letter of wishes, is a private document in which a settlor of a trust conveys their wishes to the trustee. This can relate to the treatment of trust fund, beneficiaries or other trust matters.

There are advantages for both the settlor and trustee in creating a Memorandum of Wishes. It allows the settlor to share his personal thoughts and perspective on the trust in writing.

It can be very helpful for trustees, during the lifetime and after the death of the settlor, as it gives the trustee a greater understanding of the settlor’s intentions.

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Tags: Legal, Trusts

Benefits of Effective Governance and Compliance

Posted by Pearse Trust on Monday, Sep 26, 2016

Compliance within the Financial Services industry has in recent years become one of the most important and relentlessly developing areas.

In the last eight years a surge of new regulations has emerged across the Global Financial Sector, as has been seen with the introduction of legislation such as the 2010 Foreign Account Tax Compliance Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act in the United States, and the impending enhanced cross border scrutiny and controls that will accompany the European Union’s Regulation on Markets in Financial Instruments (MiFIR). 

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Tags: Corporate Governance, Tax, compliance

Factors to Consider Before Accepting a Trusteeship

Posted by Pearse Trust on Wednesday, Sep 21, 2016

Accepting a request to act as the trustee of a trust is an important decision, one which requires careful review of the duties and responsibilities a trustee will take on.  

A decision to accept the trusteeship of a trust should not be accepted blindly.  Under the case law of most jurisdictions, no one can be compelled to act as a trustee.  

This blog examines some of the factors that should be considered before accepting a trusteeship. 

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Tags: Legal, Trusts

Dividends - Who Gets Paid And Why?

Posted by Pearse Trust on Monday, Sep 19, 2016

A dividend is a distribution to the shareholders of a company based upon the number and type of shares that they hold.  

Dividends are voluntary in the sense that there is no legal obligation for a company to pay a dividend, unless otherwise stated in the company’s constitution. 

A dividend must be paid from the distributable profits of the company and depending on the type of dividend it will be declared at a general meeting of the company or by a resolution of the directors. Once a dividend has been declared it is due and payable.

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Tags: Ireland, Tax

The Sharing Economy – Why Are Tax Authorities Getting Interested?

Posted by Pearse Trust on Wednesday, Sep 14, 2016

The “sharing economy” may sound like one of those modern buzzwords, relevant only to those spending unhealthy amounts of time on their smartphones.

But it is turning out to be big business – but also potentially risky from a tax perspective.

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Tags: Tax, Economy

Property Tax Considerations for Irish Companies

Posted by Pearse Trust on Monday, Sep 12, 2016

Under normal circumstances, an Irish company will purchase commercial property to use for the purposes of its business.

The purchase of residential property by an Irish company may not necessarily be for business reasons.

Where an Irish company decides to acquire either a commercial or residential property, it is important to consider the Irish taxation implications.

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Tags: Ireland, Tax

Trump vs Clinton – From Rhetoric to Reality

Posted by Pearse Trust on Wednesday, Sep 07, 2016

Donald Trump and Hillary Clinton don’t agree on very much, and their tax plans reflect their intentions to take America in two very different directions.

Yet, amid the verbal barbs of an increasingly acrimonious Trump vs Clinton election campaign, they do find some common ground on tax.

Unsurprisingly, both candidates claim that their respective policies are a recipe for economic growth. Also, both claim that their plans will reintroduce fairness into the tax system.

Yet, in the main, their proposals are predictably partisan. Ergo, Trump has proposed a substantial tax cut for entrepreneurs, while Clinton’s spending programs are paid for by increasing taxes on the wealthy.

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Tags: Tax, Guest Blogger, USA

Effective Board Meetings - A How-To Guide

Posted by Pearse Trust on Monday, Sep 05, 2016

Meetings are an integral part of how companies can make effective decisions and offer a platform for discussions on major strategic decisions.

They may be held for a specific reason or to discuss a host of issues affecting the mechanics and success of the firm.

In this blog, we will focus on the holding of effective board meetings and how to improve board meetings in general.

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Tags: Directors, Corporate Governance, compliance

What To Do When a Fellow Director Declares a Conflict of Interest

Posted by Pearse Trust on Wednesday, Aug 31, 2016


Previously we discussed Conflicts of Interests and the importance of declaring a suspected conflict to your fellow directors.

In this blog we will discuss how the remaining board members should deal with a declaration of conflict of interest. 

When a board of directors is informed of a potential conflict, all reasonable steps must be followed to ensure that the company and its action are beyond reproach.

This includes discussing the issue, taking a vote and having the whole discussion is included in the minutes.

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Tags: Directors, Corporate Governance, UK

A Conflict of Interest: When & How to Make the Declaration

Posted by Pearse Trust on Monday, Aug 29, 2016

As an officer of a Company, a director must endeavour to recognise and avoid instances when their own interest may conflict with the interests of the Company.

While avoiding conflicts had historically been a director's duty covered by Common Law, formal legislation was added to the UK Companies Act on 1 October 2008. 

Section 175 of the Companies Act 2006 states that a director has a duty to avoid any “situation in which he has, or can have, a direct or indirect interest that conflict, or possibly may conflict, with the interests of the company”.  An example of an indirect interest would be if the Company you act on behalf of is considering buying land which is owned by a relative.

The Companies Act makes specific reference to the importance of acknowledging conflicts specific to property, information or opportunity, for example meeting a potential new client through your role as director of ABC Limited, but forming a business relationship through another company you act for.

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Tags: Directors, Corporate Governance, UK