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

Dismiss a worker for misconduct, Question 1: What are the procedures t...

Question 1: What are the procedures that an employer should follow before he will dismiss a worker for misconduct? Question 2: Section 39 of the Labour Act provides fo

Age of majority act , Humble, a local high school student, wished to buy a ...

Humble, a local high school student, wished to buy a moped. He intended to use it to get to and from school which was 3kms away. He also had a part-time job involving some travelli

Functions of attorney general, Functions of Attorney general W...

Functions of Attorney general Whereas under sec 26(2) the Attorney General is the principal legal adviser for government of US And whereas he occupies a ministeria

Appointment of directors, Appointment of Directors: In the absence of ...

Appointment of Directors: In the absence of other provisions in a company's articles, the directors of the company would be appointed in accordance with the following provisio

Jurisdiction - court of appeal, Jurisdiction - Court of Appeal Howev...

Jurisdiction - Court of Appeal However S.64 (1) of the Constitution gives that the Court of Appeal 'shall have such jurisdiction and the powers in relative to appeals from t

Explain the theories of relational contracts, Theories of relational contra...

Theories of relational contracts These are long-term, non-legal or only incompletely legal agreements. The fact of incomplete foresight is taken into account by leaving gaps in

Name the hallmark events in the evolution of nuclear law, Some of the hallm...

Some of the hallmark events in the evolution of nuclear law are: a.   1945 - The United States tested its first nuclear bomb. b.   1945 - Hiroshima and Nagasaki were attacke

Provision of fiduciary duties - company management, Provision of Fiduciary ...

Provision of Fiduciary Duties - company management: This provision is supplemented by Article 84 of Table A which provides that-  i. The director shall not vote in respect

Contracts of guarantee, Contracts of Guarantee However a contract of g...

Contracts of Guarantee However a contract of guarantee or suretyship is such a contract through one person to answer that for the debt, such default or miscarriage of another.

Business ethics, Imagine yourself in a situation of being encouraged to inf...

Imagine yourself in a situation of being encouraged to inflate your expense account. Do you think your choice would be most affected by your individual moral development or by the

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