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

The law making process of primary legislation in mauritius, QUESTION 1 ...

QUESTION 1 Interpreting legislation is a very important function of the Court. However, Judges must only have recourse to the intention of parliament while interpreting legisla

Fraud on the minority, Fraud on the minority: The exception of "fraud ...

Fraud on the minority: The exception of "fraud on the minority" depends, whereas the company is defrauded, on "wrongdoer control," i.e. the individual shareholder must show th

Annual general meeting - meetings and resolutions, Annual General Meeting: ...

Annual General Meeting:           Section 131(1) provides that "every each company shall in each year hold a simple meeting as its annual frequent meeting in addition to any o

Conditions for relief - statutory provisions, CONDITIONS FOR RELIEF: I...

CONDITIONS FOR RELIEF: In H.R. Harmer Ltd (1959) Jenkins L.J. summarised the conditions which must be met before relief under the section can be granted by the court when he s

What is cyber crime?, Question 1 Explain the sections 167 and 172 of the I...

Question 1 Explain the sections 167 and 172 of the Indian penal code Question 2 Write a note on the Cyber Regulations Appellate Tribunal Question 3 Write a note on Digit

On which convention international humanitarian law is based, On which conve...

On which convention International humanitarian law is based International humanitarian law  is  not  wholly  based  on  the  Geneva  Convention and  Hague convention. These law

Country strategy in harmonising national, Country Strategy in harmonising n...

Country Strategy in harmonising national It is proposed that the OMC should enhance the role of such Country Strategy in harmonising national and EC aid programmes. The OMC wi

Determine the agenda-setting process, Determine the agenda-setting process ...

Determine the agenda-setting process The "agenda" is the list of subjects or problems to which government officials, and people outside of government closely associated with t

Determine the term - cyclic majority voting, Determine the term - cyclic ma...

Determine the term - cyclic majority voting The cyclic majority voting, a problem first recognized by Marquis de Condorcet in 1785, the indeterminacy of voting process, has bee

Identified and create all contract, The Laws of Contract DSL Limited decide...

The Laws of Contract DSL Limited decide to buy a ferry on operate it between CMI and Downtown, Kingston. They did not have enough money to buy the vessel, so they borrow some from

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