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

What do you understand by the rule of law, Question 1: Should the Judic...

Question 1: Should the Judicial Committee of the Privy Council be maintained at the summit of the hierarchy of our judicial system? Critically discuss on the above. Ques

Claims and create a decision , 1. Each country in the world is a member of ...

1. Each country in the world is a member of the World Trade Organization (WTO). 2. A federal court of the United States and a state court can both "hear," i.e., listen to the cl

Termination of partnership, Termination of Partnership The Articles of P...

Termination of Partnership The Articles of Partnership will contain like a rule or be the regulations with regard for the termination of the partnership. Almost in the absence o

Discuss the parties'' criminal liability, QUESTION Albert approaches the...

QUESTION Albert approaches the National Transport Authority to have a taxi's license. The Chairman of the Authority, Mr. Smith, agrees to give him a license provided that Albert

Disadvantages of arbitration, Disadvantages of Arbitration F...

Disadvantages of Arbitration First is, Arbitral awards have no precedential value as that they cannot be relied on in subsequent proceedings Second is, Arbitrati

Increasing the risk rating of building and construction, Q. Increasing the ...

Q. Increasing the risk rating of building and construction? Stakeholders indicated that there is a significant risk of phoenix activity in the building and construction industr

Discuss legal relationship between a bank and its customer, Question 1: ...

Question 1: Discuss the legal relationship between a bank and its customer with reference to the responsibilities of the parties towards each other. Question 2: This qu

Tort law and employment law, Tort law and Employment law: Pat, a build...

Tort law and Employment law: Pat, a builder, is an employee of Tom's. One day on site the scaffolding that Pat is standing on collapses and he suffers personal injuries. The s

What is phoenix-like activities, Q. What is phoenix-like activities? Ph...

Q. What is phoenix-like activities? Phoenix activity and phoenix-like activities Many activities are referred to as "phoenixing" which do display phoenix-like characteristic

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