Fraud or improper conduct, Business Law and Ethics

Assignment Help:

Fraud or improper conduct:

English courts have intervened on numerous occasions and lifted the veil of incorporation in order to circumvent a fraudulent or improper design by a bunch of scheming promoters or shareholders. This is illustrated by the decisions in Jones and Another v Lipman and Another (13) and Gilford Motor Co Ltd v Horne (14). The court's order in the latter case is usually cited as an instance of  lifting the veil but it should be noted that the  defendant (Horne) was not a member of the company and, in principle, no veil existed between him and the company which would have been lifted by the court. It is rather an instance of the court regarding the company as Mr Horne in another form ("alter ego").

Enemy Character

A company may be regarded as an enemy if, inter alia, all or substantially all of its shares are held by alien  enemies. This is illustrated by Daimler Co Ltd v  Continental Tyre & Rubber Co (Great Britain) Ltd (15). Since there appears to be no Kenya case on the point, the principles summarised by Lord Parker may be useful guidance to a Kenyan who might have to determine, in a given case, whether a particular company is to be  regarded as a friend or enemy of Kenya.


Related Discussions:- Fraud or improper conduct

Law for Business organisation, The concept of separate legal personality is...

The concept of separate legal personality is fundamental to company law. With close reference to leading cases, explain this concept and its relationship to the doctrine of limit

Termination - duties of owner, Termination - Duties of Owner Although be...

Termination - Duties of Owner Although below S.12 of the Act the hirer may on any time before the final payment may or instalment falls due to terminate the agreement through li

What do you mean by electrolysis, Q. What do you mean by Electrolysis? ...

Q. What do you mean by Electrolysis? In electro refining, the impure metal is taken as the anode and a strip of pure metal coated with a thin layer of graphite is made .the cat

BUSL320, How much for a 1000 word report? Graduate level

How much for a 1000 word report? Graduate level

Find the murderer, Your first big case is a multiple murder. As defense att...

Your first big case is a multiple murder. As defense attorney for SyKopath, you have come to the realization that he really did break into a couple's home and torture and kill them

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

Sale of goods act, 15 cases under sale of goods act within the year 2000- 2...

15 cases under sale of goods act within the year 2000- 2016?

Important resolutions which have great impact of terrorism, Two very import...

Two very important resolutions which had a great impact on description of terrorism UNSC has also declared incitement as an offence. The interpretation of terrorism formulated

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.

Ratified - pre-incorporation contract, Ratified - pre-incorporation contrac...

Ratified - pre-incorporation contract: If the agreement is a written one and it shows that the proposed company was the contracting party the promoters will not be allowed to

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