Commitment fee meaning

In this issue: Company law, governance and regulatory matters New content Useful information Dates for your diary Weekly highlights from other practice areas Company law, governance and regulatory matters FRC updates guidance on UK Corporate Governance Code in relation to remuneration The Financial Reporting Council has revised the section of its UK Corporate Governance Code guidance covering non-executive directors’ remuneration to clarify the position on share-based pay for NEDs. The Code itself is unchanged, but the guidance underscores that the existing ‘Comply or Explain’ principle gives companies latitude when designing NED fee arrangements; nevertheless, performance-related pay for NEDs remains unacceptable. These changes follow last month’s HM Treasury announcement—within its Regulation Action Plan—that the FRC would update its guidance to confirm that paying NEDs in shares is appropriate (see News Analysis: Share Incentives weekly highlights—23 October 2025—Company law, governance and regulatory matters). The update explains how boards can shape NED remuneration, acknowledging that companies may encourage NEDs to build...

In this issue: Electricity and gas market regulation and licensing Networks and network connections Oil and gas International energy New and updated content Dates for your diary Trackers Energy resources on Lexis+® Daily and weekly news alerts Electricity and gas market regulation and licensing Ofgem consults on licence modifications to implement RESP Ofgem has opened a consultation on draft licence changes intended to deliver the Regional Energy Strategic Plan (RESP). It targets four licence categories: the electricity system operator licence, the gas system planner licence, the standard conditions of the electricity distribution licence, and part D of the standard special conditions of the gas transporters licence. The consultation is scheduled to end on 28 November 2025. See: LNB News 16/10/2025 23. Electricity Code Modifications NESO’s Modification Tracker now brings together information on all live changes to the CUSC, the Grid Code (GC), the System Owner—Transmission Owner Code (STC) and the Security and...

In this issue: Arbitration in England & Wales International Arbitration Institutional and ad hoc arbitration Other arbitration and ADR-related news and developments Daily and weekly news alerts New and updated content Useful information Arbitration in England & Wales Challenge to jurisdiction resulting from a carve out in a statutory arbitration clause The New Roads and Street Works Act 1991 (NRSWA 1991) sets out a framework for resolving disputes arising from street works claims. Under section 96(3), where any provision in this Part gives a person, in defined circumstances, a right to recover costs or expenses incurred in carrying out works or other steps or measures, any dispute about whether those circumstances exist, or about the amount recoverable, must be determined by arbitration. This holds whether the provision is framed as a right of recovery, or as imposing a liability or obligation to reimburse, indemnify, or bear or meet costs. It does not apply to a provision...

When are mandate letters used? Mandate letters are ordinarily executed at the outset of a deal and are frequently appended to an agreed term sheet. They most commonly arise in syndicated transactions, serving to record the engagement terms between the borrower and the lenders that will front the syndication for the transaction (the Mandated Lead Arrangers, or MLAs). They also capture the agreed approach to the syndication of the debt. For further detail, see Practice Note: How to draft and negotiate mandate letters in loan transactions. The Loan Market Association (LMA) has two forms of mandate letter: both underwritten and best efforts. Members may obtain these documents via the LMA website. Under an underwritten mandate letter, the underwriters (often the same entities as the MLAs) commit to advance a specified share of the required debt which, in aggregate, is sufficient to fund the full required amount, irrespective of whether they succeed in bringing in other lenders to join the deal or not. This commitment applies even if no additional...

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...

This limited partnership Agreement is entered into on [ insert day and month ] 20[ insert year ] Parties [ insert name of general partner ] of [ insert address ] (the General Partner); and Each of the persons named in Schedule 1, Part B. BACKGROUND The Limited Partnership is registered as a limited partnership and designated as a private fund limited partnership in England under the LPA 1907 with number LP [ insert number ]. The General Partner has agreed to act as the general partner of the Limited Partnership and to manage the business of the Limited Partnership, and the Limited Partners have agreed to make Contributions to the Limited Partnership on the terms set out below. The General Partner and the Limited Partners intend that the Limited Partnership will carry on the Business and agree to regulate the affairs of the Limited Partnership on the terms set out below. ...

Option 1: Payments made to independent claims management company Your case has been passed to us by [ insert name of introducer ], a claims management company. We are obliged to inform you that [ insert name of introducer ] has a financial interest in introducing you to us, as we make payments to [ insert name of introducer ] for [ advertising, running a call centre and assessing potential claims ]. The sum we pay is dependent on the actual cost of the advertising/marketing and is generally in the region of around £[ insert range ] for each prospective client referred to us. Our arrangements with [ insert name of introducer ] will not be allowed to compromise our commitment to: treat you fairly protect your best interests in all our dealings with you provide independent advice and prevent others from influencing that advice If you have any queries or concerns about our arrangements with [ insert name...