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

Vacation of office - company management, Vacation of Office: In additi...

Vacation of Office: In addition to vacating office under the aforesaid provisions of Article 88 a person may cease to be a director for various reasons like as;-

Amount of compensation payable, Amount of compensation payable: In CLA...

Amount of compensation payable: In CLARK V URQUHART (44) the court explained that the amount of compensation payable under S.45 of the Act is calculated or measured in the sam

Impose a duty on directors, Impose a duty on directors: A company is, ...

Impose a duty on directors: A company is, however, free to impose a duty on its directors to attend board meetings within a certain period of time and to prescribe the consequ

International labour conference for double-discussion, The work of the Inte...

The work of the International Labour Organisation in regard to the adoption and implementation of Conventions and Recommendations involves Member States in a number of constitutio

Assets in the possession of creditors, ASSETS IN THE POSSESSION OF CREDITOR...

ASSETS IN THE POSSESSION OF CREDITORS:  If the creditor has seized assets in the course of executing a judgement for debt against the company and at the commencement of the wi

Purchase of shares - voidable contracts, Purchase of Shares - Voidable Cont...

Purchase of Shares - Voidable Contracts However an infant who applies to is allotted, a company's shares becomes a member to the company under S.28 (2) for the Companies Act f

Differences between liquidators and receivers, Differences between Liquidat...

Differences between Liquidators and receivers: There are also significant differences: (a)a liquidator has numerous statutory powers. A receiver must rely on the powers given

State article 15 of air and outer space law, State Article 15 of air and ou...

State Article 15 of air and outer space law Article  15  states  that  any  charges  that  may  be  imposed  or  permitted  to  be  imposed  by  a contracting State for the use

Discussion board question, I have an order in and I want to know what the 8...

I have an order in and I want to know what the 829.2 means and the order is 12.00?

Explain the difference between liquidation and receivership, QUESTION 1 ...

QUESTION 1 The principle of law set out in Salomon v Salomon & Co. Ltd is not always applied. Discuss when the judiciary or statutory provisions will not take into account of

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