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

Compulsory winding up, Compulsory winding up: At the hearing other cre...

Compulsory winding up: At the hearing other creditors of the company may oppose the petition.  If so, the court is likely to decide in favour of those to whom the larger amoun

Liability - company secretary, Liability:             The secretary is...

Liability:             The secretary is an officer of the company and thus he owes fiduciary duties to the company which are similar to those of a director, eg. he must act in

Examples of laws that were created to force ethical behavior, 1. Sometimes ...

1. Sometimes laws are created that are done for ethical reasons. For instance, it is wrong to pollute, so Congress passed the Environmental Protection Act, which punished those tha

States law of refugees, State law of refugees Under international law, ...

State law of refugees Under international law, refugees are individuals who are outside their country of nationality or habitual residence; who have well-founded fear of discri

Describe about the policy agenda setting, Describe about the Policy Agenda ...

Describe about the Policy Agenda Setting Agenda setting under direct democracy. Agenda setting concerns to the rules on the grounds of which policy proposals come up for a vote

Proxies - meetings and resolutions, PROXIES - meetings and resolutions: ...

PROXIES - meetings and resolutions: By S.136(1), any member of a company entitled to attend and vote at a meeting of the company shall be entitled to appoint one more person (

The restrictions imposed on locally incorporated banks, QUESTION (a) Th...

QUESTION (a) The new Guideline on Corporate Governance relates to the processes and structures that should be put in place in order to direct and manage the business and affair

Legal pyramid, Legal Pyramid: However the sources of England law menti...

Legal Pyramid: However the sources of England law mentioned above may be described through the aid of the following diagram or "legal pyramid"; NOTE: there as;

State article 9 of universal declaration of human rights, Normal 0 ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

The essential requirements of a valid asset protection trust, QUESTION 1 ...

QUESTION 1 Discuss the position in UK with respect to the Capital Maintenance Doctrine. QUESTION 2 (i) What are the essential requirements of a valid Asset Protection T

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