Weekly Wrap Up: The Great Firewall of China

Will economic ambitions force Beijing to liberalise internet policy?

In the build-up to the unveiling of China’s answer to Apple, Xiaomi’s new smartphone this week, a source leaked to Reuters that they had previously been approached by Facebook CEO Mark Zuckerberg about a possible investment, but that the deal fell through.

The meeting between Zuckerberg and Xiaomi CEO Lei Jun came ahead of the smartphone maker’s $1.1 billion fundraising last month. That brought the company’s valuation to $45 billion, making Xiaomi the world’s most valuable start-up just four years after being founded. In fact, Xiaomi now comes in just behind Samsung and Apple in sales, meaning it is one of the top three smartphone makers in the world. So it’s pretty obvious why Zuckerberg was eager to go into business with Xiaomi.

Why, then, did the talks fail? It was said that part of the reason Lei turned down the offer was due to the potential political fallout of selling a stake in his company to Facebook. The U.S. social network is banned in China. It’s all part of a bigger effort by the Chinese government, which is afraid of the impact of a free internet. This has led to the implementation of all sorts of controls, dubbed the ‘Great Firewall of China’, and the blacklisting of a number of popular social media sites. In 2009, Facebook was added to that list.

Facebook is hardly alone in this regard. A more recent example came at the end of 2014 when Google’s Gmail was blocked. There was a huge outcry, including complaints from business travellers who could no longer access their email. Their Chinese counterparts were also frustrated with the increasing difficulty of conducting business internationally.

Both the failed Facebook/Xiaomi deal and the Gmail ban highlight the difficulty that international companies can face when investing in China. It is essential that any PR strategy takes into account that many means of communication are banned. Words must be carefully chosen because both domestic and international companies can have their online presence shut down completely if they violate the ban.

It is a delicate balancing act. Consider the example of Yahoo!, which decided to comply with China’s restrictions. Yahoo! then came under fire in the U.S. and found themselves defending their decision to Congress. The Company then had to admit that that it could not protect the privacy of its Chinese customers from authorities. One customer whose identity was turned over to authorities was sentenced to 10 years in prison. Obviously, when this news leaked it resulted in plenty of bad press for Yahoo! outside of China. 

The internet ban is certainly something to consider for any company wanting to do business in China. Ultimately, the economic implications of this firewall could be a far greater threat to sentiments amongst citizens than any online communications would have been. In order to facilitate cross-border investments, it is vital for the CCP to revise its media policy. For a little advice, Communist Party leaders might want to Google the phrase, “it’s the economy, stupid.” Oh wait. They can’t.



This week Abchaps hosted a market lunch with a focus on Asia. The group discussed the market sentiment and how Asia-based companies are developing in the London market in order to gauge future investor interest. Abchaps also celebrated David Brennan’s recent promotion at Gowlings to celebrate his. We congratulate him again on reaching Partner at the firm.



Charles Stanley appointed Peter Geikie-Cobb, formerly at F&C to head its Matterley business, with a new bond fund to be provided. Meanwhile, Ian Williams, previously at SGH Martineau,joined Baker Tilly as the International Lead for its Restructuring and Recovery service line. Eric Pang joined JLL to lead its UK markets group China desk.



“Great Firewall of China”- a term to describe Internet Censorship in China under a variety of laws, administrative regulations, and execution effort



Celebrate having Scotland as part of the UK tonight by attending the Ceilidh Club Burns Night – London’s biggest Burns Night event. With three hours of energetic ceilidh dancing and a buffet dinner of traditional Scottish haggis, neeps and tatties, it is a great way to socialise, exercise and have a laugh with friends!

If you are around Greenwich over the weekend or next week pop into the Royal Observatory which hosts the Astronomy Photographer of the Year competition. The free exhibition showcases remarkable feats of astrophotography entered into four categories: ‘Earth and Space’, ‘Our Solar System’, ‘Deep Space’ and ‘Young Astronomy Photographer of the Year’ for under-16s.

Take the opportunity over the weekend to visit The Nation Gallery’s exhibition which has become one of London’s biggest attractions since opening last week. ‘Rembrandt: the Late Works’ shows just four self-portrait canvases and a tiny etching by Rembrandt Harmenszoon van Rijn, all made during the last 11 years of his life. This may not sound like a great deal but tell that to the queues outside the National Gallery!

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Weekly Wrap Up: Cyber Abuse

Cyber abuse has become an ever growing problem that has mirrored the internet’s growth over the last decade. With the introduction and vast uptake of social media in recent years, cyber abuse has become a popular topic, prompting discussions on cyber bullying and trolling. This week, Twitter announced new anti-trolling tools in an attempt to combat online trolls. ‘Trolling’ is a description for when a user’s account or post (on Twitter, Facebook etc.) is bombarded with insults, provocations or threats. Cyber bullying sees the ‘traditional’ form of bullying (physical and mental abuse) move online. This has a number of consequences: The most obvious being that it's much harder to control, monitor and discipline those partaking in cyber bullying, particularly as cyber abuse is often faceless and nameless. This means that recipients often don't know who is attacking them over the World Wide Web.

The anonymity of cyber abuse intensifies the insults because abusers feel they have the autonomy to behave without repercussion. Would they say the things they do if they were standing in front of the individual they were abusing? The internet and social media has allowed individuals to connect with a much greater audience than ever before, connecting with people who you may never meet or see face to face. This therefore makes it easier to insult another individual via keyboard. It takes away individual responsibility for what a person says as well as and more importantly, the consequences it has to the individual or the group the insult is intended for.

This also ties in with the concept of gang culture. ‘Pack mentality’ is as equally apparent online as it is in real life. More people are likely to join in if one person starts abusing a group, product, person, video or picture. For example, where avid followers of a band or artist have been seen to attack (online) journalists or individuals simply because they criticise said band or artist. What makes this scenario more worrying is the age of the online abusers and some of the deviant phrases posted. So as much as the young can be the targets for cyber abuse, they can just as easily be the culprits.

However, cyber abuse is not limited to certain categories such as age or profession. It encompasses anyone who has access to the internet. Being a part of a social media platform will also increase an individual’s chance of being targeted. Twitter in particular, has broken down barriers in terms of the contactable audience, placing every member on an even playing field. An example of this is the constant abuse aimed at celebrities on Twitter. Celebrities were once seen (and still are in some cases) as ‘untouchables’ – someone who would never be in contact with the ‘average Joe’. But with the increasing popularity of Twitter, it has been seen as a way for celebrities to connect with their fan base and stay in the public eye. It is now far rarer for example to find a celebrity who isn’t on social media than one who is.

After Robin Williams’ (comedian and actor) death earlier this year, his daughter Zelda Williams was driven to delete twitter after the intense online harassment she suffered following the suicide of her father (at least two people sent her “photoshopped” images claiming to show her father’s body). A more recent example occurred last month: Olympic gold medallist Dame Jessica Ennis-Hill received death threats via Twitter, after she said she would request her name to be removed from a stand at Sheffield United if it offered a new contract to convicted rapist Ched Evans. These are extreme examples of how easily anyone can be reached and targeted by online abuse with the even more troubling question remaining – can anything be done about it?

Twitter’s new anti-trolling tools announced this week is a good step towards abolishing internet trolls and bullies. Now a user can simply now click on a tweet and select ‘block or report’, then click through a list of reasons explaining why they wish to do this. The previous system meant the person had to fill out a report describing the alleged harassment. Users witnessing abuse will now also be able to report it. Twitter has improved their behind the scenes procedures so that reviewing and responding to abuse occurs faster. This is one step in the right direction as the attempt to eradicate this type of behaviour continues.

In the UK, there is no legal definition of cyber bullying, however a number of laws exist that can be applied to cases of cyber bullying and online harassment. In India on the other hand, cyber bullying is a bailable offence, punishable with three years of imprisonment and a fine; however the complainant and police can interpret what constitutes offensive behaviour. Perhaps using India as an example, the only way forward is to be harder on cyber abuse, making examples of the worst cases. With the internet and social media continuing to expand at such a rapid rate, cases of cyber abuse are likely to continue to rise with them. This may be the only way to turn online trolls and bullies into the equivalent of outdated technology.

Organisation All Rise are currently undertaking research into cyber abuse and collecting data on how wide spread it is. There's a short survey here which needs your input: https://www.surveymonkey.com/s/LRWKGJ9



This week, Abchaps attended the Pre Xmas Social Drink of the East meets West Club in Kensington Gardens. Abchurch and East Meets West Club share the interest of connecting businesses in Asia and the West. As well as joining Stickland Tucker's Christmas Drinks, we also participated in Gordon Dadd’s tech roundtable event, where we contributed our insights into the UK tech scene, especially on London tech IPOs.



Edison Investment Research appointed Hans Boström to its global healthcare team in London, who joins from Goldman Sachs. Meanwhile, Jim Muir has joined Baker Tilly as its new head of Financial Services. Muir Joins from KPMG. Finally WH Ireland have create the position of head of Risk for James Baptise. Baptise joins with 20 years’ experience in the industry, having previously worked for Espirito Santo Investment Bank.



‘Cyber Abuse’-Using the internet or digital media platforms to deliberately cause harm or harrass another individual or group, often repeatedly.



Starting with something a bit different, The London Illustration Fair returns with a three-day event of artist-led stands, workshops, live DJs and pop-up food stalls. Showcasing the most innovative and exciting illustrators, printmakers and draftsman working in London today, the fair also champions four invited designers as part of its Affiliated Artists scheme, which this year includes Mr Bingo and Louise Pomeroy.

Continuing with the weird and the wonderful, if you are set on spreading the Christmas cheer this Saturday, then join in with Santacon. Dress up as the man of the moment and run around London at this 'non-profit, non-political, non-religious and non-sensical' celebration of Christmas cheer. Santacon is a flash mob-style gathering that sees three huge groups of Santa’s wandering through the city, giving out gifts and free hugs, singing carols and occasionally popping to the pub. Towards the end of the routes the groups join together into a huge throng of merry Santa’s (plus a few elves and reindeer – they're allowed to join in, too).

Finally for a relaxed Sunday away from the high street crowds of Christmas shoppers, Spitalfields City Farm is the place to go. The farm is hosting stalls selling handmade cards and non-massed-produced presents, as well as Christmas tress themselves, and will be invoking a non-jarring festive atmosphere with carol singing, mulled wine and seasonal family activities.

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Weekly Wrap Up: International Tax Regulation – A Law to be Inverted?

The Democrat Party’s recent proposal to restrict companies from moving abroad for tax inversion has continued to cause considerable concern amongst US companies this week. It has been proposed that companies should be banned from tax inversions in destinations where less than 50% of the company’s dealings change hands. Previously, inversions were banned where less than 20% of the company changed hands, which would place home companies in a  disadvantaged position when compared to their foreign competitors.

Whilst many could, and do, argue that this change of regulation will be a positive step towards supporting domestic business; the international business community would do well to take into consideration the important part that Foreign Direct Investment (FDI) has to play in the growth of many of our world’s economies, and in the US itself. In the light of this new regulation, we should ask: how could the US economy suffer if tax inversion is banned?

Legal infrastructure is extremely important to Foreign Direct Investment. Asian cities like Singapore and Hong Kong have had great success in attracting FDI among their Asian counterparts due to their their transparent tax and fair arbitration systems, the explanation of their almost legendary success stories.

US trade groups have traditionally had a strong influence over tax policies, thus resulting in a distorted corporate tax system. America has the highest corporate tax rate among the 34 richest members of the Organisation for Economic Co-operation and Development (OECD), yet it implements tax breaks for interested parties from machinery investment to the highly popular NASCAR race tracks. This not only disturbs the business ecosystem, but it also increases tax risks and legal costs. The current attempt to ban tax inversion might drive businesses further away from investing into the US.

Aggressive and non-transparent tax authorities are often a great deterrent for foreign investors. One recent example being India’s Tax Authority’s attempt to recollect £1.55 billion of “outstanding” tax from Vodafone for its takeover of Hong Kong-based Hutchison Whampoa’s Indian mobile unit in 2007. Whilst under the previous tax regime it was stated that Vodafone should be subjected to no tax liability as the £6.5 billion transaction took place between two overseas companies (the transactions were made through both companies’ subsidiaries in the Cayman Islands), the Authority argues that they had the jurisdiction to tax the companies in question because the transfer of stock involved an interest in the Indian company. Despite the Supreme Court’s judgement in favour of Vodafone, the Tax Authority has reattempted to over-rule the Supreme Court judgement and collect the tax. The action has posted strong threats to multinationals that have wanted to invest into India, thus further hindering an economy already suffering from stagnation of growth.

The recent spotlight being shone on the tax situation in the US creates a useful thinking opportunity about the UK tax position going forward. Arguably, the UK has a very strong legal infrastructure in place. Its access to international arbitration, adoption of Common law, and a relatively simple tax regime places it in a much more business friendly position when compared to other places in the World. It seems that US companies are increasingly choosing to turn away from their home country so as to focus on investing into regions with more transparent and simple tax regimes. The proposed US regulation has highlighted the tax issues that US businesses currently face, issues that must be addressed if that economy is going to retain its best companies, technologies and talent.

From a British perspective, however, this development of the US tax system could represent a great opportunity to the UK for Foreign Investments. By maintaining the transparency and simplicity of the UK tax system, London could position itself as an attractive location for foreign investment, and therefore look forward to a prosperous future a buoyant economy.



As always, Abchaps were busy meeting up with City advisers this week. At a lunch completely dedicated to the Social Stock Exchange, the future of impact investing was discussed and debated. A little later in the week Abchaps swapped credentials with Altitude Corporate Finance, discussing each other’s expertise in the green and life sciences spaces. In smaller groups, Abchaps continued to be busy catching up with one of the City’s most prestigious lawyers, Richard Jordan of K&L Gates, who recently returned from cycling to Paris on a Boris Bike, as well as nurturing our relationships with a number of key journalists.



Neil McPherson has been appointed as Managing Director of pensions trustee company Capital Cranfield. He will be joining from the Conference Board’s European Pensions Council where he is currently the Council Director.

Hill Hofstetter has appointed Simon Halberstam to be the head of the firm’s technology law practice in London. He was most recently head of IT law of Kingsley Napley.



“Economic Refugee” - A person (or entity) who leaves their home country for a new country, in search of better prospects, opportunities and an improved working environment.



The Phoenix Fringe – Can’t make it up to Scotland for this summer’s Fringe Festival? Do not fear; the comics are also descending on London, with big names like Frankie Boyle, Al Murray and Ed Bryne all "doing their thing" on stage as well as some of the smaller names on the circuit.

Camden Beach – The sun is shining in London; those who can’t get away this summer but who may still be in need of some sand between their toes should head over to Camden, where a 900 sq metre beach has been constructed for Londoners who are confined to the concrete jungle this weekend. There will be great music to help sunbathers relax too!

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Weekly Wrap Up: A Tweet to Yesterday affects Share Price of Today

On Thursday, the Israeli Defense Forces (IDF) tweeted in remembrance of the (1973) Yom Kippur War, making reference to an Israeli air strike on Syria. Upon hearing this news, traders reacted and raced to buy more oil, the consequence of which was that the price of oil increased by $1 by barrel. This was despite the fact that the tweet mentioned “soviet weapons” and included the hashtag “#YomKippur73”…

Firstly, this shows how twitter content can be incredibly influential on our markets and economy. Secondly, it demonstrates that we no longer read the news. We scan it.

There is a proliferation of communication channels that we synthesize in order to form our opinions; a proliferation that has both positive and negative implications. On the positive side, it means we now have a broader view of what is going on around us on a minute by minute basis. However taking the cynical stand-point, this story also demonstrates the potential danger of these communication channels: in order to make our way through all of this information, we scan our news feeds and websites as opposed to reading them. Our brains tend to pick up on key words that trigger alarm bells, thus forcing us to act first and think second. So the traders on Thursday read the words Israel/ Syria/ Air strike, and reacted. Instantly.

There are two take home messages here: Firstly, whilst the content of our tweets is undoubtedly crucial, our choice of words and the structure is also important. Is there any way they may be misinterpreted if scanned at speed?

Secondly, and more importantly, we must remember who our twitter audience is and how important it is to communicate news via the platform. Twitter is no longer just the playground of the ex-facebook crowd; traders, analysts and other key influencers are also signing up and logging in.

We've all been mulling over how twitter may change post-IPO. The general consensus is that twitter will have less clutter and spam accounts after the float. Perhaps Thursday’s traders may give twitter a swerve for a week or two, but there is no doubt that the rest of the rest of us will carry on logging in…

This week Abchaps hosted a high-brow China market lunch, as well as attending the Temporis Capital Drinks reception, and a fascinating debate about Impact Investment at the Social Stock Exchange.

One of the highlights of the Alternative Investment Market’s calendar is the AIM-awards dinner that took place on Thursday. As well as being a guest of Meridian Equity Partners, we hosted a great table with guests from Cenkos, Sanlam, Naibu, CroweClarkWhitehill, Bird & Bird, SpAngel and Versarien. Congratulations to Allenby Capital who won Best Research Award.

This event certainly put us in a winning mood, which is appropriate considering that on Tuesday Abchurch was shorlisted for PR firm of the Year at the Quoted Company Awards. We are very much looking forward to the awards ceremony on the 29^th January 2014.

This week has seen a shake up to the big accounting and advisory practices: Grant Thornton appointed Usman Malik as director of mergers and acquisitions, Smith & Williamson appointmented John Rugman, previously of PwC, as head of valuations and finally Baker Tilly welcomed a selection of new partners to its London office - Andrew Conti, Chris Knowles, David Moran, Steve Jacob, and Mark Nisbett, congratulations!

Also on the move, Luke Whitmore of Baker & McKenzie has migrated to law firm Field Fisher Waterhouse where he is to be partner in its derivatives and structured finance division.

"Financial Shenanigans" - Acts or actions that mask or misrepresent the true financial performance of a company or entity.




Fresh from it's sold out run at Edinburgh Fringe, the hilarious Gothic comedy The Curse of Elizabeth Faulkner written by Tim Downie is on Every Thursday, Friday and Saturday from now until the end of November at the Charing Cross Theatre.

This weekend mark’s the end of London Cocktail Week, so no better excuse for a tantalising tipple! Head out to celebrate our capital's unrivalled cocktail culture at one of the many pop-up bars, tastings, parties, master-classes or even go with one of London’s 150 pre-established cocktail venues. 

For some artistic culture, opening today is the exhibition “When Britain Went Pop - British Pop Art: The Early Years” at Christie’s new Mayfair gallery - displaying 140 rare pieces of work from the likes of Eduardo Paolozzi, Gerald Laing, Allen Jones and his First Step and Swingeing London to Richard Hamilton’s famous depiction of Mick Jagger. 

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Five minute Abchat with Janan Paskaran, Partner at Torys LLP, Canada

Janan Paskaran is a corporate and securities Partner at international business law firm Torys LLP in Calgary, Canada. He was a member of the judging panel for The Oil Council’s 2012 Lifetime Achievement Award in London.

What did you want to be when you grew up?

Like most kids in Canada, I wanted to be a hockey player!
(That's ice hockey to us Brits)

Describe your role in ten words or less (if that’s possible!):

Our aim is to provide practical legal advice and come up with creative solutions to ensure the goals of our clients are achieved.

What drew you to the natural resources sector?

I was born and raised in Alberta and so I grew up with the backdrop of the oil and gas industry. It is an unbelievably dynamic and interesting industry and I enjoy the variety of work I do on a daily basis.

What is the most interesting thing about your work?

Finding creative solutions is always the most interesting part of the job. With difficult capital markets, lateral thinking is key to ensuring our clients’ needs are met.

What is the main difference between advising companies in the UK and Canada?

There are some small nuances between the legal systems, however for the most part advising companies in both jurisdictions is fairly similar.

Is there a common misconception about the legal profession?

I think the biggest misconception is that lawyers are simply out to generate fees without regard to what clients actually want or need. Our Firm has always looked to establish a long term relationship with our clients so we are able to understand their business and become part of their team so we can work together to achieve their goals.

What developments do you expect to see in emerging markets in the next twelve months?

I think we will see continued investment in emerging markets as investors look for places where they can earn a significant return.

If I wasn’t talking to you now, what would you be doing?

Working or in the gym!

Thank you Janan!

Janan Paskaran has been involved in numerous transactions including Dana Petroleum in its C$240 million acquisition of Bow Valley Energy, Premier Oil in its US$505 million acquisition of Oilexco North Sea, General Electric in its US$4.8 billion acquisition of the aerospace business of Smiths Group and many more.

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FSA fines UBS: Who's banking on wholesale change?

This week the FSA issued one of the largest fines in its history, following the conviction and sentencing of rogue trader Kweku Adoboli for two counts of fraud by abuse of his position. In addition to Adoboli’s seven year prison sentence, UBS has been fined £29.7 million for system and control failing that allowed Adoboli to lose the bank £1.4 billion. The FSA’s view that UBS’s controls were “seriously defective” is an understatement.

This equates to the third largest fine the FSA has ever issued, beaten only by Barclays, which was fined £59.5m over the Libor scandal in June 2012 and JP Morgan which was hit for £33.3m in June 2010 for failing to protect client money.

In court, the jury was told the way in which Adoboli lost the money was “unprotected, unhedged, incautious and reckless”. In Adoboli’s defence argument, his lawyers made the point that the Swiss bank’s attitude to risk depended largely on how profitable it was and the culture was to ignore risk so long as it paid. But Perry Stokes the Deputy Chief Inspector outlined how this has become the “UK’s biggest fraud, committed by one of the most sophisticated fraudsters the City of London Police have ever come across.”

Adoboli’s actions cost fellow traders their jobs, prompted the resignation of the Chief Executive Oswald Gruebel and wiped £2.7bn from the UBS share price.

The lack of awareness Adoboli had for risk highlights major flaws in the banking sector, in terms of rogue traders themselves and the negative public image of banking as a whole. There is clearly a fixation on profits at any cost in the actions of Adoboli and an encouragement on behalf of the management for him to take greater risks – just until the house of cards came tumbling down.

These issues need to be addressed if the sector is going to be considered credible and trust worthy. The threat of an imposing prison sentence and fines for potential rule breakers will help develop this. Unless the current underlying culture within banking is addressed, nothing will change. In order to reduce the risk of future rogue trading, there needs to be a change in values, where risk management is prioritised over a yearning for profits at any cost. As well as this, a personal approach where individuals take more responsibility for their actions is required. Additionally the FSA should continue to issue fines and sanctions in the event of future misconduct.

Senior managers of such institutions must review the pressure they put on junior members to succeed, seemingly at any cost.


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It’s time to turnaround: a discussion of turnaround investing

Event: Building Business in the 21^st Century
Date: Wednesday 4^th July
Location: K&L Gates, One New Change, City of London

The world of turnaround investment is not a sector for the easily offended, a sector where a sizeable return on investment is sought above everything else. If a change, however large or disruptive it may be, makes financial sense then it is almost certain to happen. When International Law Firm K&L Gates LLP and Clearwater Corporate Finance hosted a breakfast seminar on Wednesday 4^th July titled Building Business in the 21^st Century, I learnt that a three letter acronym drives the sector. ROI is almost solely all that counts.

The event began with a presentation from Simon Peckham, CEO of Melrose plc, a listed company that looks to acquire businesses, improve them and realise the value created as a result. In simple terms their investment strategy is to buy, improve and sell businesses. Simon discussed Melrose, what it does and how it looks at prospective acquisitions. What became obvious from Simon’s presentation is that the turnaround sector is very much high risk, high reward, as demonstrated by the exceptional growth that Melrose has achieved.

Next up was Jon Moulton, Chairman and Founder of Better Capital. Jon is extremely well known in the City and has over 30 years experience of turnarounds. Better Capital recently hit the headlines with the acquisition of Jaeger, the high-end fashion brand and retailer. Jon certainly didn’t mince his words about the sorts of problems they come across within companies when assessing them. After summing up what Better Capital does Jon discussed the cut throat nature of turnarounds, his experiences and why many companies need to be reinvigorated. His insights into how his team goes about the process were incredibly interesting and his notion that they look for bad management challenged the preconception that private equity looks for strong management teams. In turnaround situations, Jon explained, this is one of the most straightforward things to improve and change.

After both of the speakers had finished the floor was opened to questions from the audience and Chris Smith, Partner at Clearwater and Jeremy Davis, Partner at K&L Gates joined the panel. A number of questions were posed ranging from how big a role does the existing IT infrastructure play on their initial investment decision and what the speakers’ thoughts were on service industries.

One of the most interesting points that arose was the pace at which change is implemented. If a company is taken over, the changes (management alterations, asset disposal etc.) required to reverse the company’s fortunes are implemented immediately, and both speakers emphasised that decisive action had to be taken within the initial weeks. Another interesting point was how far ahead turnaround specialists plan when looking at a prospective purchase. When initially looking to acquire a company, Jon claimed Better Capital would already have an idea of how or when it would look to sell the Company.

The turnaround sector is in an interesting position at the moment. While the economy experiences ongoing challenges, there are many companies that could be depressed in value and therefore perfectly poised for a takeover and turnaround, however the lack of finance available means caution is at an all time high and any acquisition is riskier than usual. Turnarounds are a fascinating period in the life cycle of a company and the rewards are there to be taken for those who have the skill, capital and nerve to act quickly. 

Thank you to K&L Gates for hosting a really enjoyable and thoroughly interesting insight in to a fast-moving sector.

The turnaround investing presentations given at the event can be found at this link: http://www.klgates.com/files/Publication/7ac6ac5c-c38c-4a5b-bd72-2ea1293dc19c/Presentation/PublicationAttachment/66b5fbfd-5ff1-48bf-bcae-2ffc4cffe6bd/FINAL%20Building%20Businesses%20slides.pdf

Oli H

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King Pin 2011

The Abchurch Team joined forces last night to take part in King Pin 2011, the 10 Pin Bowling tournament, organised by Roger Gregory of global full-service lawyers Dorsey &Whitney LLP. A total of six teams from a wide range of business backgrounds gathered together to take on the challenge and compete for the title of King Pin 2011.


The Abchurch team comprised of Julian, Mark, Tania, Claire, Oliver, Joanne, Simone, and Adam and a sterling effort was made by all. New Abchap Adam was by far the star of the Abchurch team with smooth moves on the bowling alley but it was most definitely a team effort. Within some fantastic moments of true sporting talent and the bad bowling displays providing classic entertainment for everyone involved.
The highlight of the evening was Team Abchurch finishing in the top three, although perhaps the greatest disappointment was that we lost out on second place (and therefore being entered into the final Champion’s play off) by just a single point!

The King Pin 2011 title was awarded to a team fielded by Evolution Securities who definitely deserved their title!

A huge thank you to Roger Gregory and to Dorsey and Whitney for organising the event and for inviting us along to take part. We’re looking forward to returning the favour and seeing some of the team at our next Future Faces party!

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Five-minute Abchat: Allan Dunlavy, Schillings

In the first of a regular series, Allan Dunlavy, Associate at Schillings, the leading law firm protecting the reputations of high-profile individuals, corporates and brands, talks to Abchurch about life on the legal side of reputation management.

What did you want to be when you grew up?

Well, obviously there were the usual childhood and teenage fantasies of playing professional sport but these quickly faded as my lack of talent became apparent! If I wasn't practising law and I hadn't just won the lottery, then I think I would have liked to have been an archaeologist. I have always enjoyed history and you get to see remote corners of the world, excavate long forgotten sites and use your brain.

How did you get into reputation management law?

I have always wanted to be a lawyer and always had an interest in media law. At my previous firm I received a few instructions, got some good results and really enjoyed the work. I decided to pursue my career in this area and chose to join Schillings because of its expertise and reputation in the area of defamation and privacy law.

Describe your role in ten words or less (if that’s possible!):

Wow, that’s a challenge for a lawyer! I will try and keep it brief! I assist clients, both corporate organisations and private individuals, to protect their reputations and private information when they come under threat from external forces such as the media or non-media sources such as those with an axe to grind, malicious insiders and business or political rivals.

So, if I wasn’t talking to you now, what would you be doing?

I would probably be taking instructions from a client in regards to a soon-to-be-published newspaper article likely breach their confidentiality or privacy, and then liaising with the client’s PR team and the newspaper’s legal department to prevent publication. Failing that, I would be running to court to obtain an injunction preventing publication on the basis that the article would breach our client’s confidentiality / privacy and would not be in the public interest.

What is the most interesting thing about your work?

Schillings has an enviable client list including some of the worlds highest profile businesses and entrepreneurs and, on the other side, high profile sports, music and entertainment personalities. The work that the Firm and I do for them varies enormously and is often international in nature incorporating the laws of several different jurisdictions simultaneously.

Is there a common misconception about the reputation management?

The first misconception is the word ‘management’ – I prefer to call it reputation protection as the work we do complements that of PRs. We work with PR as an extension of their team to provide the client with legal tools. Second, is the idea that reputation protection is about restricting freedom of speech. No doubt all of us, regardless of our professions, believe freedom of expression is a basic tenet for any democracy. However, it is essential that this is counter-balanced with a company’s and an individual’s right to a reputation and an expectation of privacy; which is also crucial. Without reputations how can people decide who to vote for, at which school to educate their children, which companies to purchase products from, or who to work for? Every day we rely upon the reputations of people and organisations to make good, informed decisions and therefore it is essential that commentary affecting this is fair and accurate. At Schillings we play a vital role in providing access to such fair and accurate commentary.

How has the industry changed over the last couple of years?

It has become much more International with the explosion of the Internet and social media. This has made it possible for anyone, anywhere to become a ‘publisher’ and has increased the volume of media sources exponentially, thus the threats not only come from a greater volume of sources but also from all over the world.

Countering this is the increased protection available for a company's confidential information and an individual's privacy. This has come about through case law, which Schillings has been pivotal in establishing, and as the result of European legislation. Information of this nature is now better protected and we have the tools to ensure that private and confidential information that should not be in the public domain remains confidential.

What developments do you expect to see in the next twelve months?

It’s an interesting and exciting time. The Firm is currently involved in the Government’s Department for Culture, Media and Sport select committee enquiry into “Press Standards, Privacy and Libel” concerning the self-regulation of the media, and we are part of the Ministry of Justice’s 2010 Working Group on Libel reforms. This area of law is constantly moving and as such it receives intense scrutiny from the media, not least because they are directly affected by it. It is unclear what the outcome will be but the Law will no doubt continue to adapt to deal with changes that arise.

Whilst it is important to permit publication of matters that are genuinely in the public interest, too often reputations are damaged, and privacy invaded, by the publication of stories that are untrue, or where the main aim is to satisfy salacious curiosity about the lives of the rich or famous irrespective of the distress caused to them, their families, and their friends. The aims of existing laws are sound, but in practice, they frequently fail to achieve a satisfactory balance between the public interest and truth and privacy. As a result, public figures, such as CEOs, may be unable to prevent themselves being defamed, or suffering invasions of privacy which are essentially unlawful. Schillings believe there are opportunities to continue to help clients protect their privacy and reputations without compromising the vital principle of freedom of expression and we have developed a ‘Blueprint for Change’ paper outlining three key changes as a way forward.

For more information about Schillings, please visit http://www.schillings.co.uk/. You can also download selected publications from Schillings here.

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