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

Defining phoenix activity, Stakeholders felt the working definition was bro...

Stakeholders felt the working definition was broadly appropriate. It was also noted that the Treasury definition, used as the working definition, has been endorsed by the ATO. A nu

What do you understand by business ethics, Question : (a) Who is a ‘whi...

Question : (a) Who is a ‘whistle blower'? Explain the main disadvantage a ‘whistle blower' may face. (b) Name two engineering disasters (c) What do yo

High court - establishment and composition, High Court - Establishment and ...

High Court - Establishment and Composition Establishment Further the High Court is established through S.60 (1) of the Constitution that states which 'there shall be a

Who are the persons to whom administrative law apply, Question 1: Trace...

Question 1: Trace the development of administrative law in the English legal system from its questioned beginning to the present day. What recognition is it being given today i

Resolution to wind up voluntarily, Resolution to Wind Up Voluntarily: ...

Resolution to Wind Up Voluntarily:  The type of resolution to be passed varies with the circumstances of the case, as provided in s.271(1): (a) If the articles provide for

Explain causation, Explain the Causation, Remoteness and Contributory Negli...

Explain the Causation, Remoteness and Contributory Negligence in short. Causation: When the accident was going to occur anyway then causation is not proved, which is a third

Principle of floating charges, Principle of floating charges: The gene...

Principle of floating charges: The general purpose of the rule is to prevent an unsecured creditor of an insolvent company from getting advantage over other creditors by obtai

Write briefly on two types of ppp, Question 1: Public Private Partnersh...

Question 1: Public Private Partnership (PPP) means investment through private sector participation by a contractual arrangement between a procuring entity and a private sector

Powers and duties - Company secretary, Powers and Duties:  The powers ...

Powers and Duties:  The powers and duties of the secretary depend on the size and nature of the company and the personal contractual arrangements that it makes with him. Howev

Illustrate the economic and social council of united nations, Illustrate th...

Illustrate the Economic and Social Council of United Nations. UN Economic and Social Council: The Economic and Social Council (ECOSOC) functions as the central forum for

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