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 are the stages in policy process, What are the Stages in Policy Proces...

What are the Stages in Policy Process The traditional textbook approach to the study of public policy separates policy making into its component steps and analyzes each in turn.

Effect of registration, Effect of Registration: S.16(2) of the Act pro...

Effect of Registration: S.16(2) of the Act provides that "from the date of incorporation mentioned in the certificate of incorporation the subscribers to the memorandum of a

Legal pyramid, Legal Pyramid: However the sources of England law menti...

Legal Pyramid: However the sources of England law mentioned above may be described through the aid of the following diagram or "legal pyramid"; NOTE: there as;

Briefly describe the purpose of cross examination, Question 1: (a) In ...

Question 1: (a) In which instances would the legal burden shift on the defence? (b) Briefly describe the purpose of Cross Examination? (c) What are the characteristics of C

Civil liabilities, Civil Liabilities: LIABILITY FOR FAILURE TO STATE A...

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 no

Determine the central feature of politics, Determine the central feature of...

Determine the central feature of politics Indeed this manipulation is a central feature of politics: "Problem definition is the active manipulation of images of conditions by c

Class meetings - meetings and resolutions, Class Meetings: "Class meet...

Class Meetings: "Class meetings" are not provided for by the Act.  however, a class meeting may be held pursuant to the provisions of the company articles of association, if a

Public company - registration procedures, Public Company - Registration Pro...

Public Company - Registration Procedures: Consent to act as director (Form No 209) If any person is appointed director of the company by the articles which are to be deli

Show the criminal conduct definition of phoenix activity, Q. Show the Crimi...

Q. Show the Criminal conduct definition of phoenix activity? Master Builders argued that the definition of phoenix activity should focus on the existing sections of corporation

#title.32228-05, Hi do you have solutions for 32228-05 question on law

Hi do you have solutions for 32228-05 question on law

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