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

Distribution of assets, Distribution of Assets A general rule the Art...

Distribution of Assets A general rule the Articles of Partnership contains complete regulations like to the rights of partners in such an dissolution. Whether in the absence

Rights of guarantor against creditor, Rights of Guarantor Against Creditor ...

Rights of Guarantor Against Creditor Consequently the rights of the guarantor are: like (a) Further at any time after that the guaranteed debt such has become due and such prev

Provisions prevent capital going out of the company, Provisions Which Preve...

Provisions Which Prevent Capital Going Out Of The Company: In Trevor v Whitworth (1887) Lord Watson stated: "Paid-up capital may be diminished or lost in the course of the

Disadvantage of a scheme of arrangement, Disadvantage of a scheme of arrang...

Disadvantage of a scheme of arrangement: The disadvantage of a scheme of arrangement is that it requires the preparation of elaborate documents and the observance of a strict

What is multiparty system and coalition, Multiparty system and coalition ...

Multiparty system and coalition We have already made conceptual excursion gaining impressions of the existence of multiple parties. Now, in this section we shall observe that h

Explain the fundamental causesof inertia, Explain the fundamental causesof ...

Explain the fundamental causesof inertia The fundamental causes of such 'inertia' which are reflected in, besides other factors, in inaction and delays. The theory must also be

Analyse ethical and legal issues , Fran is a 68 year old female patient wit...

Fran is a 68 year old female patient with a history of diabetes.  Fran separated from her husband, Derek, 3 years ago (although they are not divorced) and over the past few years t

#title., What is hire purchase?

What is hire purchase?

Hire-purchase and conditional sale – sales of goods, Hire-Purchase and Cond...

Hire-Purchase and Conditional Sale – Sales of Goods Conditional Sale is an agreement for the sale of goods like in which the purchase price or part about it is payable through

I need essay writing help, I am looking for essay writing help in topic "Ec...

I am looking for essay writing help in topic "Economic Crisis in Europe"

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