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

Reserve capital, RESERVE CAPITAL: The reserve capital is defined by S....

RESERVE CAPITAL: The reserve capital is defined by S.62 of the Act as the portion of the issued but uncalled capital of a limited company which the company's members, by speci

Define the term - inaction and crises, Define the term - Inaction and crise...

Define the term - Inaction and crises We know that the standard social planner does not show and delay or have tendency of inaction and adopts a policy as soon as it is proved

Purpose of a trial period in a contract of employment, QUESTION 1 S.38(...

QUESTION 1 S.38(2) and S.38(3) of the Employment Relations Act require that an employee should be given the "opportunity to answer the charge" before the employer decides to te

Removal of directors - company management, Removal of Directors: By s....

Removal of Directors: By s.185(1) a company may by ordinary resolution remove a director before the expiration of his period of office, but notwithstanding anything in the art

Accuracy of the managers certificate, Accuracy of the managers certificate:...

Accuracy of the managers certificate: Was it the duty of the auditors to test the accuracy of the manager's certificate by a comparison of the figures in the books, and were t

Compensation for removal - company management, Compensation for Removal: ...

Compensation for Removal: Subsection (6) provides that nothing in s.185 shall be taken as depriving a removed director of compensation or damages payable to him in respect of

Form of reconstruction, Form of reconstruction: Where one company tran...

Form of reconstruction: Where one company transfers its undertaking (and assets) to another company in exchange for shares to be alloted direct or distributed to the members o

Indicators of phoenix activity, Indicators of phoenix activity Stakehold...

Indicators of phoenix activity Stakeholders noted that there are a range of 'signals' or 'indicators' that phoenix activity may be about to occur. These generally occur before t

Best arguments to support the objections, A man is standing at a bar. ...

A man is standing at a bar.  His friend Sam says to him, "Jim, it was Claude who scratched your car and slashed all your seats." Two days later Jim is found beaten i

State the advantage of the information on the legislature, Advantage of the...

Advantage of the information on the legislature The main result was that voters take advantage of the information on the legislature - executive trade-offs in policy process. W

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