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

Redemption of shares, Redemption of Shares: Section 60 (1) empowers a ...

Redemption of Shares: Section 60 (1) empowers a company limited by shares to issue preference shares that are, or may be at the option of the company are to be liable, to be r

Business Law for Accounts , Hi Dear, Could you please help me in online ex...

Hi Dear, Could you please help me in online exam in ( Bus Law for Accounts).!! the exam will be open within one hour and half. Thank you

Describe the social conditions of multiple streams, Describe the Social con...

Describe the Social conditions of multiple streams Social conditions that are not defined as problems, and for which alternatives are never proposed, never become policy issues

Liability based definition of phoenix activity, Q. Liability based definiti...

Q. Liability based definition of phoenix activity? The definition used by Treasury, and used as a working definition for this project, focuses on the intent with which phoenix

TRANSFER OF TITLE, WHAT ARE THE EXCEPTINS TO THE ''NEMO DAT'' RULE?

WHAT ARE THE EXCEPTINS TO THE ''NEMO DAT'' RULE?

What is the meaning of conciliation, (a) Section 63 of the Employment Rela...

(a) Section 63 of the Employment Relations Act provides as follows: "The parties to a labour dispute may jointly refer such dispute for voluntary arbitration to the Tribunal or

When was international atomic energy agency established, Explain Internatio...

Explain International Atomic Energy Agency The  NPT  also  creates  rights and  obligations on  the  members of  NPT  to  comply  with  the provisions of the treaty and to ensu

Estate planning , Estate Planning Case Study Rich and his wife, Ruby, ...

Estate Planning Case Study Rich and his wife, Ruby, heard that you are an expert in the field of Estate Planning as a result of the superior education you received at WPU.  The

Decisions for operating a business, When operating a business, an owner has...

When operating a business, an owner has to make numerous decisions on a daily basis. In some cases, a decision may increase profits, but the owner is uncomfortable making such a de

Qualifications of advocates, Qualifications of Advocates Conversely fo...

Qualifications of Advocates Conversely for qualify to admission as an advocate one must as; Be a US citizen or can say Possess a law degree from a recognized

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