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

Explain the need for rules in interpreting statutes, Question 1: (a) I...

Question 1: (a) In the Mauritian Legal System, there is a hierarchy of courts. Describe the various courts. (b) State and critically examine the features of the 5 main sour

Glen signs a release, Glenda has taken a household insurance on her classic...

Glenda has taken a household insurance on her classic Queenslander home in North Queensland.  At the time of application, the insurer "URINSURED" asked various questions regarding

Normative ethics theory, As you have already learned during your tenure at ...

As you have already learned during your tenure at Midwest Valueland (MV) and from exposure to business news, it is not unusual for leaders and managers to encounter ethical situati

Use of shares of the minority, Use of shares of the minority: X, Y and...

Use of shares of the minority: X, Y and Z held 4,500, 4,500 and 1,000 one pound shares respectively, of Company B.  They were the only shareholders and  X and Y were the direc

Lanuzzi v. Phillip Morris_IRAC, Mrs. Lanuzzi began smoking in 1951 when she...

Mrs. Lanuzzi began smoking in 1951 when she was fifteen. She smoked two packs a day until her death from lung cancer in 1984. She had tried several times, unsuccessfully, to quit.

Allotment of shares and debentures - mergers and winding up, Allotment of s...

Allotment of shares and debentures - mergers and winding up: When the scheme is before the court for final approval a minority may object on any of the various grounds indicat

Practical consequences of incorporation, Practical Consequences of Incorpor...

Practical Consequences of Incorporation: In the course of delivering his judgment in Salomon's case Lord Halsbury stated that "once the company is incorporated, it must be tre

Shares issued at a premium, Shares Issued At A Premium: A company may ...

Shares Issued At A Premium: A company may at times issue its shares at a price above their nominal value, i.e at a premium. This may be necessitated by the fact that the compa

Describe remedies available for a case of judicial review, Question 1: ...

Question 1: (a) What is meant by: (i) Ratio Decidendi (ii) Obiter Dicta (iii) Legal Doctrine (b) Distinguish between Criminal Law and Civil Law.

Describe the term- higher national income and interest rate, Describe the t...

Describe the term- higher national income and interest rate This causes country B to adjust to point B with both a higher national income and interest rate. At this point the f

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