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

Extraordinary universal meetings, Extraordinary Universal Meetings: S....

Extraordinary Universal Meetings: S.132(1) provides for the convening of "extraordinary" general meeting but does not define it.  Neither is the word "extraordinary" defined i

Reports and balance sheets, Reports and balance sheets: The reports an...

Reports and balance sheets: The reports and balance sheets for the years ending June 30, 1925, and, June 30, 1926, were signed by two directors.  The reports annexed to these

Termination of arbitral proceeding, Termination of Arbitral Proceeding ...

Termination of Arbitral Proceeding Although the Arbitral proceedings may be terminated in any of the giving ways as; Through the final award of the arbitrator Whether

Resolutions - meetings and resolutions, Resolutions: A meeting reaches...

Resolutions: A meeting reaches a decision by passing a resolution.  There are two kinds of resolution, ie. (a) an ordinary resolution which is carried by a simple majority

Name the issue pertaining to state succession, Name the issue pertaining to...

Name the issue pertaining to state succession The first issue pertaining to state succession is treaties. The new state would have to embark upon with the treaties signed by th

State in brief about the monetary effects, State in brief aboput the Moneta...

State in brief aboput the Monetary Effects Besides real income effects there will also be monetary effects if nations seek to intervene in foreign exchange markets which govern

Determine the primary criticism of the stages model, Determine the primary ...

Determine the primary criticism of the stages model The primary criticism of the stages model is that it tends to be front-loaded, which means, more attention is paid to policy

Find out the elements of the tort, 1. Justices in the U.S. Supreme Court ar...

1. Justices in the U.S. Supreme Court are appointed for life. Unless they choose to retire, they have the right to remain in office and cannot be removed by congress or by the Pres

Prospectus issue, Prospectus Issue: Under a prospectus issue the compa...

Prospectus Issue: Under a prospectus issue the company sells the shares directly to the public rather than selling them through intermediaries.

Period within which the dismissal itself must be effected, QUESTION 1 O...

QUESTION 1 One of the main ingredients of a system of collective bargaining is the right to join and participate in the activities of a trade union. What is the extent of this

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