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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.
Principle of statutory provisions: Most of the cases in which the principle has actually been applied appear to fall within one of the following two classes:- 1. Where the
There are certain legislations passed regarding state succession. For example, The continuance of legal Proceedings Act 1950; The Pakistan Currency Act 1950; The Pakistan
Class Meetings: "Class meetings" are not provided for by the Act. however, a class meeting may be held pursuant to the provisions of the company articles of association, if a
What are the disadvantages of delegated legislation? Disadvantages of delegated legislation: • The delegated body that is responsible for the legislation is not represent
Duties or Obligations of Hirer However these are not provided in the Act although are usually found in such the agreement itself Like: a) Take delivery: whether upon ente
Articles of association: The memorandum of a company limited by shares or by guarantee must state that the liability of the company's members is limited. Hence the memorandum
Arbitral Award However the decision of the arbitral tribunal is referred to like an arbitral award. Therefore the terms of employment really require the arbitrator that must m
WINDING UP ON: "THE JUST AND EQUITABLE GROUND": Unlike the other five grounds this one is widely interpreted and it is no objection that the petition is based on facts u
Dissolution by the Court Conversely Section 39 of the Act prescribes the state of affairs that the court will decree the compulsory dissolution about a partnership. They are: li
Business Names: If a company has a place of business in Kenya and carries on business under a business name which does not consist of its corporate
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