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

Contributions of equity, Contributions of Equity Contributions of Equi...

Contributions of Equity Contributions of Equity as: Developed the so called maxims of equity and Provided additional remedies and Provided for the discovery of

Indicators of phoenix activity, Indicators of phoenix activity Stakehold...

Indicators of phoenix activity Stakeholders noted that there are a range of 'signals' or 'indicators' that phoenix activity may be about to occur. These generally occur before t

What are the prohibited acts related to this right?, QUESTION 1 Pringle...

QUESTION 1 Pringles Company Ltd is an enterprise that is not regulated by the EPZ Act. It employs 50 workers who have been employed for more than 10 years. Presently, Pringles

Disadvantages of subsidiary legislation, DISADVANTAGES: Whether delega...

DISADVANTAGES: Whether delegated or subsidiary legislation has been criticised just to a variety of reasons, the main ones being that it is:as; (a)   Less democratic Whe

Explain the principles of effective financial regulations, Question 1: ...

Question 1: a) Explain the four principles of effective financial regulations. b) Describe briefly the various regulatory tools used to achieve objectives of financ

Determine about the mundell-fleming model, Determine about the Mundell-Flem...

Determine about the Mundell-Fleming model The basic two country Mundell-Fleming model assumes that both countries are small. It is this assumption that we modify and assume in

Function and powers of chairman, Function and Powers of Chairman: In t...

Function and Powers of Chairman: In the case of National Dwellings Society v Sykes Chitty, J. stated: "It is the duty of the chairman, and his function, to preserve order,

Determine in detail about the credibility factor, Determine in detail about...

Determine in detail about the credibility factor Let us consider, 'credibility' factor. The law, institutions and other created authorities lead to circumstances that can assur

Successive stages of a capital reorganisation, Successive stages of a capit...

Successive stages of a capital reorganisation: There was a sequence of general and class meetings to approve the successive stages of a capital re-organisation.  Out of 1,600

Briefly outline the role of the state in employee relations, Question 1: ...

Question 1: (a) Briefly outline the role of the State in Employee Relations. (b) Write short notes on any three of the following: (i) The Ministry of Labour and Industrial

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