EXPERIENCE IN CORPORATE AND TAX LAW IS

QUITE LITERALLY, TRANSATLANTIC...

Duncan Rann is the senior partner of Sandersons Solicitors, a hugely respected practice, established in 1839 and for whom the Parliament Street offices in Hull have been home for almost 100 years.

We asked Duncan about his role within Sandersons:

“I have held the post of Senior Partner, since the untimely death of my predecessor, Peter Martin in July 2001.  I practice as a corporate and tax lawyer providing all manner of tax advice but mostly in relation to direct taxation (capital gains tax, income tax and inheritance tax as opposed to VAT and stamp duty) and in giving advice to clients in relation to transactions in which they are involved.  I also have overall responsibility for the management and finances of the firm”

How did you come to this position?

“I graduated form the University of Warwick with my LLB (hons) before crossing the Atlantic to study for my Masters degree in law (LLM)at the University of Pennsylvania in Philadelphia.  Specialising in mergers and acquisitions, I subsequently passed the New York Bar exam being formally admitted to the New York Bar in 1988.  I then worked as a fully qualified attorney for a large Philadelphia firm on major corporate transactions, including mergers and acquisitions (the largest deal I worked on was $3 billion), leveraged aircraft leasing work, securities offerings and banking and finance deals.

In 2000 I decided to return home to be closer to my family.  I had expected to move to a large City to find the most interesting work but after attending an interview at Sandersons, I was delighted to be invited to join a practice that provided good quality, interesting  and challenging work.”

What key services should a corporate solicitor offer?

“A corporate solicitor should offer an understanding of and expertise in the documentation necessary to put together any complex transaction.  This includes an understanding of the commercial aspects of a range of transactions and an ability to advise a client clearly and concisely on such issues.  Specific areas of expertise included property, construction, employment law, taxation issues and specifically on maximising tax advantages when structuring a deal.  Finally they must be good communicators.  Finding one solicitor with all these skills is unlikely, but a firm with several partners can usually meet every eventuality more effectively than a small firm or sole practitioner without specialisms.”

How do good solicitors payback clients through services?

“Corporate rates should be reasonable, but bear in mind the old adage about paying peanuts.  The advantages of using a corporate lawyer however, are largely in the negative i.e. avoiding problems that could otherwise arise.  Such an example might be in the negotiation of a lease in which the opposing party could include many onerous terms that the client will only discover over a period of time.  Even more useful is an understanding of proper tax planning.  The taxing statutes are set up in such a way that it is possible to end up paying a large mount of tax or a lesser amount of tax, with the commercial consequences of a transaction remaining the same.”

What is the biggest mistake made by  companies who fail to take legal advice?

“ The examples are numerous.  Many clients however, will often discover after the fact, that they have been taken advantage of by an opposing party who took the professional advice that they espoused.  This statement does not imply any dishonesty on the part of that other party – simply that they were better prepared and subsequently fared better.”

Is it too late to employ a solicitor once you have already started the business?

“Right up to completion of a matter (but less so where there has been a prior exchange of contracts it is never too late to employ a suitably experienced Solicitor.  I have seen many cases where the Solicitor has persuaded the client not to complete or has renegotiated an unfavourable deal at the eleventh hour to the client’s substantial advantage.”

How much time do you spend digging companies out of problems, and could these have been avoided?

“Being philosophical, business would be less interesting if there were no people to dig out of holes!  It is extraordinary how many people get into difficulties, which the smallest advice could have prevented.  Because of the intensity of the work involved in regaining status quo (if it is possible at all), the cost of damage repair is usually several time what it would have cost to instruct a solicitor in the first place, and tens if not more times the cost if it leads to litigation.  Without doubt , most problems can be avoided with proper advice upfront.”

Is there a noticeable trend towards using corporate legal advisors?

“There is not in my view a particularly noticeable trend towards using corporate legal advisors, although generally businesses we come across do appear to be properly represented.  A lot of businesses are very price sensitive and choose not to be appreciate the benefits to be derived from using an expert until they are stung.  I sympathise with their desire to economise but thankfully a large number of clients do appreciate the need for expert advice and do benefit from it.”

What single piece of advice would you offer a business looking to start up?

“Make sure that you are sufficiently capitalised.  If your business is under capitalised, the chances of failing increase exponentially.  Do not underestimate the amount of capital you need.  It is easy to do this out of an abundance of enthusiasm and lack of experience.”

To conclude, tell us a little about your life away from Sandersons:

“I live locally, between Hull and Beverley, and have a wife and two young children.  I serve as the Honorary Solicitor for the Beverley Rugby Club, for whom I also play for the veterans team each week.  My hobbies include DIY and fishing and I am also a co-director of the family company, which owns and manages nursing homes.”

If you would like to get the excellent legal talents of Sandersons to join your business team contact them now on 01482 324662 or email enquiries@sandersonssolicitors.co.uk 

Source: Commerce & Industry, July 2005