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

Implementation of the international law, Implementation of the internationa...

Implementation of the international law This further leads to the issue of implementation of the international law. There are certain ways through which the international law c

Business law for commercial transactions, (These are short answer assignmen...

(These are short answer assignments; just a few paragraphs for each part is all that is required) Assignment 1: Discussion Questions In this assignment, you will research and appl

Managing director - company management, Managing Director: In Ellis v ...

Managing Director: In Ellis v Bailey and Company (East Africa) Limited (76) it was stated that "without specific authority in the articles directors may not appoint one of the

Article 2 - state responsibility, Article 2 - State Responsibility Art...

Article 2 - State Responsibility Article 2 . This article lists down the elements of what constitute International wrongful act of a state. Means both wrongful acts and omissi

Describe ways in which subsidiary legislation is controlled, Question 1: ...

Question 1: (a) Explain what is meant by Subsidiary Legislation and the reasons for using such a law. (b) Describe the ways in which Subsidiary Legislation is controlled.

Rights of co-guarantors, Rights of co-guarantors among themselves A guar...

Rights of co-guarantors among themselves A guarantor who that has paid more than his share below the guarantee is entitled such to contribution from his co-guarantors, although

Can you describe international law, Q. Can you describe International law? ...

Q. Can you describe International law? International law comprises of a set of rules that govern the international relations between sovereign states. It can be classified into

Issue of restraining order services , Sub: Filing Divorce and Issue of Rest...

Sub: Filing Divorce and Issue of Restraining order services Dear Kimberly Frederick Bumfree, Warm Greetings from Donald & Matthews Law firm, This letter is for your imme

Right to sell - terms used in contract, Right to sell - Terms used in Contr...

Right to sell - Terms used in Contract With S.14 (a) provides that there is an implied condition such seller has a right for sell the goods and, like in the case of an agreeme

Take-over bids, Take-over bids: Section 210 provides that where a sche...

Take-over bids: Section 210 provides that where a scheme or contract  involving the transfer of shares or any class of shares in a company to another company has been approved

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