Fraud on the minority, Business Law and Ethics

Assignment Help:

Fraud on the minority:

The exception of "fraud on the minority" depends, whereas the company is defrauded, on "wrongdoer control," i.e. the individual shareholder must show that the wrongdoers control the company, as where they control the board and general meetings and will not permit an action to be brought in the company's name.  Furthermore, wrongdoer control is essential because cases of misappropriation of property and breach of duty can be ratified by a 51 per cent majority of the members which is not controlled by the wrongdoers.

The wrongdoers will obviously be in the above position if they have voting control as they had, for example, in Menier and Cook.  However, in Prudential Assurance Co. Ltd. v Newman Industries Vinelott, J. held that de facto control was enough, i.e. the company does what the wrongdoers want even though the wrongdoers do not have voting control.  They are able to persuade the majority to follow them.


Related Discussions:- Fraud on the minority

Bulky and technical bills, Bulky and technical Bills: In fact some Bil...

Bulky and technical Bills: In fact some Bills are so bulky and technical hence they are passed without sufficient debate it means Parliament lacks the time and knowledge to th

Calls on contributories, Calls On Contributories:                     ...

Calls On Contributories:                                       Every person who is a member of the company at the commencement of winding up and every past member is in princi

Recognition of government, Recognition of government It relates to reco...

Recognition of government It relates to recognition of a government of a particular State as the legitimate representative of the people of that country. The recognition of gov

Statutory interpretation, Words are imprecise. Interpretation of words and ...

Words are imprecise. Interpretation of words and the passages in which they are contained is a difficult task, but one nonetheless that is required when Courts are asked to apply t

Effect of voluntary winding up, Effect of Voluntary Winding Up: The ma...

Effect of Voluntary Winding Up: The main difference in legal consequences between a compulsory and voluntary winding up are: (a) A voluntary winding up commences on the day

Disclaimer of assets, DISCLAIMER OF ASSETS: The liquidator has a statu...

DISCLAIMER OF ASSETS: The liquidator has a statutory right of disclaimer of assets: s.135.  The rules are: (a)     he must obtain leave of the court; (b)     the right o

All spark-producing devices, Mrs. Rusholme occupied the firm of Saunders an...

Mrs. Rusholme occupied the firm of Saunders and Watts to refinish floors in assured rooms of a home owned by her and her husband in Red Deer, Alberta. She told Mr. Saunders that sh

Discuss about the three streams, Discuss about the three streams There...

Discuss about the three streams There come times, however, when these three streams are joined. An event in the political stream, such as a change in administration, calls for

Bluebook format - located the resource, Explain how you located the resourc...

Explain how you located the resource that addresses the question and cite that resource in proper Bluebook format: Spend & Save is claiming that our client lacks standing to s

Government optimal long run policy - nash equilibrium, Government optimal l...

Government optimal long run policy - Nash equilibrium The government's optimal long run policy is associated with policy coordination at point C. However, as in the static mod

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