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

State about the underlying process - law institutions, State about the unde...

State about the underlying process - Law institutions The underlying process forms the basis of our next subtitle. The first point is, that if an optimal policy has been adopt

Determine the primary criticism of the stages model, Determine the primary ...

Determine the primary criticism of the stages model The primary criticism of the stages model is that it tends to be front-loaded, which means, more attention is paid to policy

Analytical judgment, FutureEd corp., a Bangladesh based catering company ha...

FutureEd corp., a Bangladesh based catering company has decided to extend its catering business in the main divisional cities. They have come up with the decision to open up some r

Welfare of the community act 1962 , Helen Brown's husband Mark was recently...

Helen Brown's husband Mark was recently charged with an offence under the Welfare of the Community Act 1962 (Qld).  It is likely that Helen will be called as a witness against hi

Empirical claim, One of the critical tasks we have as empirical political s...

One of the critical tasks we have as empirical political scientists is to assess the validity of the comments people around us make about the socio-political world. For this assign

State international humanitarian law, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

State the theory of international antitrust, State the theory of internatio...

State the theory of international antitrust A fourth approach is the allocation of jurisdiction over conduct with multijurisdictional effects to one agency by another agency th

Void contracts - law of contract, Void Contracts - Law of Contract Whe...

Void Contracts - Law of Contract Whereas  the Infant's Relief Act 1874 of the UK applies to the US as a statute of general application such was in force in the UK on date 12 A

restraint of trade clause, a) Explain two scenarios in which a restraint o...

a) Explain two scenarios in which a restraint of trade clause would typically be used. b) Suppose your employer wanted to include a restraint of trade clause in your employment

Corporate form based definition of phoenix activity, Q. Corporate form base...

Q. Corporate form based definition of phoenix activity? As phoenix activity entails the manipulation of the corporate form, it can be defined in these terms. A definition could

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