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Trading companies

trading companies

supporting you in realising your teaching school model

There are many reasons why schools and academies may want to establish a company to support their activities. These will include supporting income generation, effective collaboration with other schools, supporting teaching school alliances or simply to ring fence risk. However, it is often a complex decision which is based on a number of competing factors. It is therefore important you take legal advice at an early stage.

If you decide a trading subsidiary is the most appropriate option, you will need to put in place robust arrangements which go beyond simply incorporating a ready-made company. It is important to have in place an agreement that not only sets out the basis of the provision of services between the school and its subsidiary, but also ensures the governing body of the school has appropriate control over the activities of its subsidiary.

Our expert team will provide you with straightforward, practical advice in putting the appropriate arrangements in place. We have extensive experience in advising a large number of clients on a wide range of issues involving trading companies.

what we do...

Extensive experience dealing with the issues which affect establishing a company - from assisting with the decision-making process, establishing the appropriate governance and commercial mechanisms to advising on the legal and practical issues, including employment, pensions, property, commercial and intellectual property
Working closely with accountants and tax advisers to ensure the model proposed is the most effective from a tax and financial perspective.

Advising on all manner of sizes and types of the companies - from establishing a small company to support after school activities to teaching school alliances to an 80 strong school partnership.
Working with the National College to establish a model for how companies can support collaborations, specifically around teaching school activities.

related resources

Legal updates

HR and employment conference law in education 2016

We were thrilled that nearly 150 delegates joined us for our fifth annual HR and employment conference for school leaders in Birmingham. The slides from each of the sessions can be found here.

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accountability, regulation and leadership in our school system - exploring a ten year vision

Hear from education leaders following the 10 year vision roundtable

We caught up with education leaders following our latest roundtable discussion on the accountability, regulation and leadership in our school system

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View all

what the directories say...

A client adds: 'The firm is a very efficient and effective organisation, and I often hear other colleagues around the country reflecting on the high quality of their work, guidance and support.'

Chamber 2018

The ‘highly professional and responsive’ team at Browne Jacobson LLP assists educational providers, including multi-academy trusts, with restructuring and academisation as well as providing regulatory advice and representing institutional clients in discrimination claims.

Legal 500 2017

A highly ambitious organisation with a superb corporate image, excellent client support and good commercial awareness.

Chambers 2017

Leading national education practice, with significant experience advising on academic issues

Chambers 2016

A deep understanding of the legal framework associated with schools and academies.

Legal 500 2016

recent experience

Acting for a group of academies who collaborated by using a trading company to address behaviour and attendance issues where the local authority were unable to continue providing services. We provided guidance on the governance structures and also advised on the impact of employment and pensions on the operation of the company. We also put in place stringent arrangements to ensure the academies complied with EFA requirements.
Acting for a group schools (which includes academies, maintained schools and private schools) in forming a company to support collaborative arrangements whereby the schools would jointly tender to sponsor four brand new schools to be built by the local authority through targeted need provision funding. The project involved putting in place robust governance arrangements necessary to support joint working.
Advising a teaching school alliance on establishing a trading company to support their teaching school activities. This involved advising on the most appropriate governance structure and on key aspects of use of a company, including the advice on impact on student loans, ensuring that appropriate membership and alliance arrangements were in place and also ensuring there were appropriate contractual protections in place between the teaching school company and the students.