MUST READ!: State Of The Nigerian Economy

MUST READ!: State Of The Nigerian Economy: By Nebo Ike When the decisions of the apex court on the 2015 election petitions, in which the ruling party (PDP) got badly wounded was ann...

Corporate Social Responsibility: BREXIT: CHANGES AND CHALLENGES

Corporate Social Responsibility: BREXIT: CHANGES AND CHALLENGES: BREXIT: CHANGES AND CHALLENGES As ROUND 3 of Brexit negotiations commences this paper highlights some major positive and negative chan...

BREXIT: CHANGES AND CHALLENGES

BREXIT: CHANGES AND CHALLENGES

As ROUND 3 of Brexit negotiations commences this paper highlights some major positive and negative changes that have taken place; and the changes expected sooner or later as well as challenges facing them.

The first legal impact of Brexit is the shock of stripping UK of all the benefits of EU nations, especially the rights accruing from European Economic Area Act 1993(EEA). To avoid the greatest economic, diplomatic and constitutional problem supporters of staying in the EEA at least temporarily believe it is the best model for providing certainty for businesses without EU membership. The UK is a member of the EEA by virtue of membership of the EU.

This provisional arrangement, which would avail UK with the advantages of the single market and largely persist with free movement, would give UK breathing space. Presently members of the EEA are part of the EU’s single market; existing non-EU members include Norway and Iceland. If they succeed with this submission the transitional period would end in March 2019 and for at least a few years after Brexit. Some Labor and conservative MPs have demonstrated support for this submission.

Apparently the success of the above submission would provide escape route from a possible return to WTO rules for trade between the two markets; high customs duties, burdensome controls and high transport costs. But the snag remains that EU treaties provides that there can be no trade deal until the UK leaves the EU. So chicken and egg, which one comes first?

UK jobs, Work Permit and Visa

UK Immigration Policy is geared towards tight control. Prime Minister May has also committed to a long-term numerical cap for 100,000 net migration to the UK. For applicants to UK to include a requirement for migrants to have a firm job offer before being granted entry to the country. Besides the usual requirement that the applicant at the date of the application must be 18 years old with valid international passport expiring not less than five months time; bank statement of account is also required to ascertain the viability of the source of sustainability.

It is speculated that UK would be divided according to labor target areas. The visa would allow for migrants to be able to work in areas of labor shortages but would not entitle them to seek for employment in other areas of the UK

According to experts EU fishing boats can still operate in UK waters after Brexit. One of the implications is that UK lost some rights even after leaving EU. Farmers say the UK produces only 60% of its own food therefore must increase production to forestall food insecurity after leaving the EU. This may trigger off demand for farm and agriculture workers.

France has commenced review of its Labor Laws to make is easier for job seekers to comply with the extant regulations. Besides other EU cities are gearing up to take the role UK cities played during their sojourn in the EU.

UK Border controls as she leaves EU market

Leaving the EU is UK’s long term political commitment as well as leaving European Court of Justice (ECJ). Coming with that will be the imposition of greater controls on immigration and trans-border commercial transactions. This scenario presents a difficult time for UK and EU nations, especially regarding existing policies on electricity, gas and other energy issues. So expecting changes in these areas would make common sense by prospective business people.

According to the guidance issued by the UK Financial Conduct Authority, Six months “processing time” required by the new Market in Financial Instrument Directive that “to be sure that we can determine an application in time for January 3, 2018, it needs to be complete by July 3, 2017”. This is for both domestic and cross border businesses. The compliance of this policy change is to be enforced by European Securities Market Authority.

One member of UK parliament commented on the necessity for these imminent changes that the situation with the status quo appears defective because it “dismantles the apparatus of the single market and the customs union and it extinguishes any role for the European Court of Justice”.

Citizenship

However, Barnier an MP said, a stumbling block remained the issue of whether the rights of EU nationals in the UK would be overseen by the European court of justice, something Theresa May has ruled out. UK negotiators have been advised to be more flexible and imaginative on the issue of citizenship. This follows the decision of Brussels that British citizens living in EU nations could lose their rights after Brexit.

Pending UK judicial processes are still subject to European Court of Justice until such changes that are being proposed the Brexit bill.

Iyke Ozemena

Attorney

IKECHUKWU O. ODOEMELAM & CO

Corporate Attorneys/Consultants

#BREXIT

Corporate Social Responsibility: THE HARVEST OF PRACTICAL ENTREPRENEURSHIP GETTING ...

Corporate Social Responsibility: THE HARVEST OF PRACTICAL ENTREPRENEURSHIP GETTING ...: THE HARVEST OF PRACTICAL ENTREPRENEURSHIP GETTING BOUNTY Entrepreneurship is private enterprise that produces enough reward that sustain...

THE HARVEST OF PRACTICAL ENTREPRENEURSHIP GETTING BOUNTY

THE HARVEST OF PRACTICAL ENTREPRENEURSHIP GETTING BOUNTY

Entrepreneurship is private enterprise that produces enough reward that sustains the venture or economic activities.  Usually the profits realized support survival, growth and expansion of the project.  

The initial challenges are the visualization of business opportunities which involves huge, expensive researches and resources.  Another problem is non-availability of capital.  Even after acquisition of such capital the risk of losing the meager sum when the experiment fails. Americans are better off in this regard because of special fund available for trying entrepreneurs against possible failure.

For these reasons entrepreneurship is not a palatable or voluntary vocation of many school leavers, especially for those who have the opportunity of acquiring tertiary education.  Having attained that height in countries with poor size of trained and skilled manpower, the propensity is to hunt for white-collar job in order to recoup the cost of high education.

A couple of years ago, not quite long because even in the ‘90s Nigeria was still referred to as a country that was inadequate in terms of qualified and skilled human capital, especially in top  management, ICT, banking and finance, oil and gas as well as technology which is a measure of nations’ social progress.  Just after the end of last millennium there was sudden turn reported by the media that job market was gradually becoming saturated with job-seeking graduates. It was only then that it dawned on the jobless graduates that beyond academic qualifications paraded by the applicants, other skills were required to grab few jobs available, then competition to become skilled heightened.

It is this desire to be skilled in order to grab white-collar job drove a lot of graduates and non-graduates to involuntary entrepreneurship. However, both federal and state governments  responded appropriately by providing infrastructures for skills acquisition and empowerment programmes.

To further enhance the opportunities of earning income the government introduced NPower programme, conditional cash transfer, agri-preneur and other economic and engaging activities. Even as Abia  government  trains hundreds youths from each of the 17 LGAs.  For Rivers state more and more of its youths receive scholarship annually for professional training/entrepreneurship  abroad. Kenyan government went beyond all these  to make it mandatory for the youth and women to undertake 30% of contracts it awards thereby encouraging entrepreneurship.

Some beneficiaries of these programmes that embraced entrepreneurship involuntarily may have reached a point of no-return  with Education fo Employment programme embarked upon by the Abia state government.  Recently the first batch numbering over 200 graduated by this programme had their convocation attended by prominent entrepreneurs and influencers including former Governor of Anambra state, Mr Peter Obi.

The  chairman of Nigeria Security and Exchange Commission, after applauding the government’s programme urged the grandaunts to consider themselves fortunate for among them would come a ‘Bill Gate’, the world richest technologist and entrepreneur.  For the grandaunts there can be no higher wish than that.

Iyke Ozemena

Attorney

IKECHUKWU O. ODOEMELAM & CO                                                                                     Corporate Attorneys/Consultants

amazon.com/iyke ozemena books

http://www.amazon.com/dp/B0075RXXLE    COMPANY SECRETARIES HANDBOOK

http://www.amazon.com/dp/B005783S6S      DIRECTORS
http://www.amazon.com/dp/B005MKCESY    MEETINGS: Dynamics and Legality 

Corporate Social Responsibility: EU BUSINESS REGULATIONS IN UK

Corporate Social Responsibility: EU BUSINESS REGULATIONS IN UK: EU BUSINESS REGULATIONS IN UK It is certainly not business as usual since British electorates opted to leave EU, now known as Brexit....

EU BUSINESS REGULATIONS IN UK

EU BUSINESS REGULATIONS IN UK

It is certainly not business as usual since British electorates opted to leave EU, now known as Brexit.  Coming together in the first place was a product of a huge legal labyrinths.  Disentangling the structure means another elaborate legal  challenges especially to the international business community, as well as the common understanding of the legal environment by citizens.

Members of EU have uniform commercial code which are like templates for international business transactions across member nations.  Of course with Brexit the equation has been altered.  Some business deals that were concluded before the commencement of Brexit are clearly out of the purview of this discourse, except to watch out how UK laws would affect the status quo.  However, for many of such negotiations that were not concluded before Brexit they remain ‘unfinished business’.

A bill in the making at the UK parliament shall, when passed into law, repeal  such laws that subjugated UK extant business laws to the EU uniform commercial code. It would provide also the power to retain such laws that are beneficial to UK business environment and overall interest.  To this end, any enforcement process against UK companies and businesses regarding compliance of EU laws would fail unless it coincides with UK laws.

Although UK has not completed the processes of exit and so not clear as to the contents of the package, it is feared  that Britons living in EU nations stand to lose their rights accruing to other EU citizens.  Also feared not to be available to UK citizens is the right of appeal from UK to EU Court of Justice that has been the vanguard of EU citizens human rights.

There is no doubt that EU has demonstrated global leadership in the protection of fundamental human right, insisting also that it should be the world’s parameter. Through its surveillance it warns nations derailing from the parameter to refrain from excesses. Recently such reprimand went to Polish government whose proposed judicial reforms would allow parliament and justice minister to appoint judges.  Although Poland finds a strong ally in Hungary which has shown solidarity towards the reforms against possible EU criticisms and sanctions, similar situation is about to occur in Zimbabwe without a hoot from Africa Union.

Meanwhile UK business negotiations should be undertaken with the hindsight of Brexit.  Except pending transactions aka ‘unfinished businesses’ sanctions and remedies are now based on UK laws.  The intricacies and details shall engage the attention of subsequent comments. 

Iyke Ozemena

Attorney

IKECHUKWU O. ODOEMELAM & CO                                                                                                         Corporate Attorneys/Consultants

amazon.com/iyke ozemena books

http://www.amazon.com/dp/B0075RXXLE    COMPANY SECRETARIES HANDBOOK

http://www.amazon.com/dp/B005783S6S      DIRECTORS
http://www.amazon.com/dp/B005MKCESY    MEETINGS: Dynamics and Legality