Fraudulent trading, Business Law and Ethics

Assignment Help:

Fraudulent Trading:

Under s.323, if the court finds that the business of a company in liquidation has been carried on with intent to defraud creditors or for any fraudulent purpose it may declare that any persons who were knowingly parties to carrying on the business in this fashion shall be liable for debts of the company as the court may decide.

It has been said that "if a company continues to carry on business and to incur debts at a time when there is to the knowledge of the directors no reasonable prospect of the creditors receiving payment of those debts, it is, in general, a proper inference that the company is carrying on business with intent to "defraud" (per Maugham J. in William C Leitch Bros (No 1)(1932).  But in another case the same judge said that there must be evidence of "real dishonesty".


Related Discussions:- Fraudulent trading

How would you ensure that the code is effective, QUESTION 1 You are giv...

QUESTION 1 You are given the task to make a Code of Ethics for your organization (a) Describe a Code of Ethics (b) What are the different aspects/issues that you might in

Equity - subsidiary legislation, Equity: Moreover the word "equity" o...

Equity: Moreover the word "equity" ordinarily means "fairness" or "justice".  In fact as a source of England law there the phrase "doctrines of equity" denotes the body of Eng

Constitutional interpretation, The United States form of government is ofte...

The United States form of government is often described as a "Constitutional Democracy ". The existence and importance of a written Constitution is a major difference between the A

Reconstruction - take-over bid, Reconstruction Under S.280: The essent...

Reconstruction Under S.280: The essential features of this type of reconstruction have been described at 8.2.1(b).  It is subject to several disadvantages and is little used.

What is the appropriate revenue recognition, Moto Knappy is a manufacturer ...

Moto Knappy is a manufacturer of automobile motors. The manufacturing process takes a couple of months. The company produces several standard and custom models. To simplify this

Define a conflict of interest, Question  How does the RTL Code define ...

Question  How does the RTL Code define a 'conflict of interest'?  Give one example of how the RTL Code suggests a conflict of interest may arise.

Powers and functions of the commission, Question 1: ‘There has been con...

Question 1: ‘There has been considerable development from the time of the Industrial Associations Ordinance 1938 to the present time of the Employment Relations Act 200

Directors report - accounts and audit, Directors Report: By S.157 (1)...

Directors Report: By S.157 (1) the balance sheet must have attached to it a directors' report on the company's affairs, including the amount, if any, which they recommend shou

Effectiveness of challenge and appeal mechanisms, Question 1: Taking th...

Question 1: Taking the case of Mauritius, in the machinery of government, the Procurement Policy Officer is the central organ of the Government that regulates the procurement

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