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

Defects in appointment - company management, Defects in Appointment: S...

Defects in Appointment: S.181 provides that a director's acts shall be valid despite any defect that may afterwards be discovered in his appointment or qualification. This pro

#title.writhe some stetment about morality of iinternationa, writhe some s...

writhe some stetment about morality of international context

Discuss the anti-money laundering act 2002, QUESTION 1 Mr. Smith is goi...

QUESTION 1 Mr. Smith is going for his driving test at the Traffic Branch of the police force in Port- Louis. On his arrival, he approaches Police Constable Edouard to facilitat

Law of negligence not every error is negligence, Every person is having dif...

Every person is having different set of knowledge and skill with them which is different from other individual, this difference in skill and knowledge factor among various individu

What is the theory of contracts, What is the Theory of Contracts The sp...

What is the Theory of Contracts The specialized relationship between principal and agent and between agents themselves in the policy process has been explained with the economi

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

What are the functions of the commission for conciliation, Question 1: ...

Question 1: (a) Explain what you understand by the following legal terms under the Employment Relations Act - (i) Collective bargaining (ii) Collective agreement (iii

Bidding process in specific circumstances, QUESTION 1 Section 39 of the...

QUESTION 1 Section 39 of the Public Procurement Act provides for cancellation of a bidding process in specific circumstances. State those circumstances and the implications of

Explain the law of treaties, LAW OF TREATIES Treaties are an important ...

LAW OF TREATIES Treaties are an important and major source of international law. It is a convenient way by which the States deliberately  enter into agreements with other State

District magistrate''s court - criminal jurisdiction, District Magistrate's...

District Magistrate's Court - Criminal Jurisdiction However Statute Law like as Miscellaneous Amendments Act 1983 amended the criminal jurisdiction of district magistrate's co

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