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

Determine the implications of the legislature, Determine the implications o...

Determine the implications of the legislature Policy outcomes are the result of legislative bargaining. So policy becomes a compromise between the executive and the legislature

Tort example - property from injury, A landowner has a duty to protect a p...

A landowner has a duty to protect a person that enters his/her property from injury.  If the person is a guest or licensee, then it is a higher duty of care.  However, the landowne

Purchaser assert, a) Under these facts, what claim could Purchaser assert i...

a) Under these facts, what claim could Purchaser assert if she begin a lawsuit?  State the name of the claim only.   b)   What would Purchaser argue is her basis for such cla

Articles of association, Articles of association: The articles of asso...

Articles of association: The articles of association cannot absolve the auditors from any obligation imposed upon them by the statute....  Under the statute the members of the

Discuss the advantages of arbitration over litigation, QUESTION 1 Mr To...

QUESTION 1 Mr Tom, a businessman, has a commercial dispute with one of his clients. He has heard about Alternative Dispute Resolution and he believes that mediation, conciliati

Some provisions of the factories act, Some provisions of the Factories Act ...

Some provisions of the Factories Act and its amendments are given below. 1.   These provisions relate mainly to the health, safety and welfare of the workers in industry. 2.

The public procurement regulations 2008, QUESTION 1 (a) Section 45(10) ...

QUESTION 1 (a) Section 45(10) provides for remedies that the Independent Review Panel may recommend if it finds merit in an application for review. State three of those remedie

Statutory corporation and chartered corporation, Statutory Corporation a...

Statutory Corporation and Chartered Corporation Statutory Corporation However this is created through an Act of Parliament and comes in existence from the date of c

Agency, John owns a 1951 Mercedes Sl that he wishes to sell. He instructs R...

John owns a 1951 Mercedes Sl that he wishes to sell. He instructs Ross to sell the car, and in return, will be paid £5,000 commission. Ross manages to find a buyer, Paul, Paul and

Appeals - court-martial, Appeals - Court-Martial In fact in Section 11...

Appeals - Court-Martial In fact in Section 115 of the Armed Forces Act including a person who has been convicted through a court-martial to appeal to the High Court either aga

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