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

Enumerate the working of coordination mechanism, Enumerate the Working of c...

Enumerate the Working of coordination mechanism Take interesting case which will clarify the working of coordination mechanism better. If a member State in EMU, defaults on it

Define and explain the term code of ethics, Question 1: (a) What does ...

Question 1: (a) What does Professional Practice mean to you? Define your perception of good Professional Practices. (b) Discuss some of the difficulties and challenges fac

What is an exemption clause, QUESTION 1 (a) Explain the word "condition...

QUESTION 1 (a) Explain the word "conditions" in a contract (b) Describe the various types of conditions that may exist in a contract QUESTION 2 Explain the term "war

A contract of employment or a procedure agreement, QUESTION 1 Write in ...

QUESTION 1 Write in detail on the following (a) Agency shop orders and (b) Decrease from the remuneration of a worker for the employer's benefit QUESTION 2 An indust

Torts law problem, Bazil decided to celebrate a promotion he had received a...

Bazil decided to celebrate a promotion he had received at work that week by having a few alcoholic drinks on the weekend. After a few hours spent in the local pub, Bazil decided he

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

Formation and characteristics of agency, Formation and Characteristics of A...

Formation and Characteristics of Agency An agency may come into existence by the following ways: Contract (Appointment) or agreement Further this can be done in any

Illegal partnerships - number of partners, Illegal Partnerships - Number of...

Illegal Partnerships - Number of Partners However a partnership will be illegal in the following state of affairs: like;; (a)   Whether it is formed for an illegal purpose

State the third approach to antitrust agency, State the third approach to a...

State the third approach to antitrust agency A third approach to antitrust agency interaction is the bilateral cooperation and coordination theory. This model for how an agency

Determine the example of a relational contract, Determine the example of a ...

Determine the example of a relational contract A characteristic macro example of a relational contract with a strong lock-in effect is membership of a currency community. Self-

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