Civil liabilities, Business Law and Ethics

Assignment Help:

Civil Liabilities:

LIABILITY FOR FAILURE TO STATE ANY MATTER OR REPORT

At Common Law, a contract of allotment is not a contract Uberrimae Fidei. The company is therefore not under a legal obligation to disclose or state in its prospectus any relevant matter or report. The allottee of shares has, therefore, no remedy against the company if he bought the shares which he would not have bought had the company made the relevant disclosure. This rule has not been changed by the disclosure requirements of the Companies Act.

However, the allottee may have a remedy for an omission if the failure to state any relevant fact had the indirect effect of rendering a stated fact untrue, with S.48 (a) of the Act. For example, in COLES v WHITE CITY (MANCHESTER) GREYHOUND ASSOCIATION LTD the prospectus stated that the land to be acquired by the company was "eminently suitable" for greyhound racing. No mention was made of the fact that approval of the local council was required in order to build public stands and kennels. This was held by the Court of Appeal to be a ground for rescission by the plaintiff.


Related Discussions:- Civil liabilities

What is the predevelopment phase of policy process, What is the Predevelopm...

What is the Predevelopment Phase of policy process a) Get authorization and support Who has the authority to create this type of policy? Who has the authority to approve

State the royal assent for the procedure of parliamentary, State the royal ...

State the royal assent for the procedure of parliamentary. The Royal Assent: It is specified when the Bill has passes by both Houses successfully and is usually simply fo

Defined specific acts that constitute an act of terrorism, Defined specific...

Defined specific acts that constitute an act of terrorism:- Convention on Offences on Board Tokyo Aircraft 1963 relates to hijacking. Unlawful Seizure of Aircraft in Hague 1

How he can set up a trade union of workers, QUESTION John, an employee,...

QUESTION John, an employee, at Mauricia Travel Ltd, wishes to set up a trade union. He has been told that trade unions are very beneficial to employees and if trade unions and

Explain the open method of coordination, Explain the open method of coordin...

Explain the open method of coordination There are at least five levels at which coordination can occur such as, - international, regional, national, sub-national and sectoral

Valid but irregular allotments -allotment of shares , Valid But Irregular A...

Valid But Irregular Allotments: An allotment of shares is valid but irregular under S.52 (3) if it was made before the time of the opening of the subscription lists. The secti

Description of terrorism, Description of terrorism UNSC has successfull...

Description of terrorism UNSC has successfully come up with laws to deal with terrorism and with the help of the theory of self determination, use of force and IHL, tried to re

Comparative analysis, Identify two firms with similar problems but from dif...

Identify two firms with similar problems but from different countries. Conduct a comparative analysis of the firms.Analyze political, social, ethical, and legal differences facing

Executory consideration - types of consideration, Executory Consideration -...

Executory Consideration - Types of Consideration Although Executory consideration consists of a promise made about one party and a promise made through the other party to the

Describe the term banking, Question1 Describe the term banking and what ar...

Question1 Describe the term banking and what are the permitted businesses for a banking company as per BR Act 1949 Question2 When is a negotiable instrument considered as

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd