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

Explain claimed circumstances, Question 1 - Hatfield owned a large farm...

Question 1 - Hatfield owned a large farm on which he grew grain. His combine was inadequate in relation to the acreage of grain that he harvested annually. As a result, on seve

Determine the schemes of michael mandelbaum, Determine the schemes of Micha...

Determine the schemes of Michael Mandelbaum Michael Mandelbaum has offered a two fold scheme, the inside-out and outside-in approach. According to inside-out approach, a natio

Determine the central feature of politics, Determine the central feature of...

Determine the central feature of politics Indeed this manipulation is a central feature of politics: "Problem definition is the active manipulation of images of conditions by c

Enumerate about the short-run phillips curve, Enumerate about the short-run...

Enumerate about the short-run Phillips curve Diagrammatically the short-run Phillips curve becomes flatter under coordination as opposed to no coordination. If one country expa

Elements of estoppel, Elements of Estoppel Presentation crucially t...

Elements of Estoppel Presentation crucially to be acted on reliance on the presentation and one is Change in the legal position as a product of the reliance and one is

Statutory safeguard - non-accepting shareholders, Statutory safeguard - Non...

Statutory safeguard - Non-accepting shareholders: The non-accepting shareholders have a further statutory safeguard.  Company A is not obliged to serve notice of intention to

Definition of an industrial dispute, Question 1: (A) What is an industr...

Question 1: (A) What is an industrial dispute and what are the elements involved in the definition of an industrial dispute? (B) What are the various options available to t

Internal and external environment, This project requires you to choose an o...

This project requires you to choose an organisation of your own choice and discuss on the following with respect to your chosen organisation: External Environment Mega

Involuntary restraints - law of contract, Involuntary Restraints - Law of C...

Involuntary Restraints - Law of Contract Although these are restraints imposed by professional bodies and trade associations at their members to certain purposes as e.g. enhan

Political and education function of chief justice, Political and Education ...

Political and Education function of Chief Justice Political Function Moreover the chief justice administers the presidential oath for the person who is elected like pre

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