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

What is the common law, Question 1: (a) What is "The Common Law"? (...

Question 1: (a) What is "The Common Law"? (b) What are the virtues of the Common Law? Question 2: (a) Name the three facets of "the concept of justice". (b) E

What are usually accepted principles of corporate governance, QUESTION 1 ...

QUESTION 1 (a) What are usually accepted principles of corporate governance. (b) What factors can lead to incrising corruption in the business environment? QUESTION 2

Determine the name of tort, Patrick works in the same office as Marian...

Patrick works in the same office as Marian and they do not work well together. One day, Marian got credit for a job well done and Patrick got angry over it. He walked int

Gist of lord buckleys statement, Gist of Lord Buckleys statement: The ...

Gist of Lord Buckleys statement: The gist of Lord Buckley's statement, above, may be summarised as follows: The judges will not regard a transaction undertaken by a company as

Explain about the policy co-ordination of each countries, Explain in detail...

Explain in detail about the policy co-ordination of each country With no policy coordination each country will attempt to maximise its own welfare, taking the other country's m

Explain ihl prohibitions, Important to observe that IHL prohibitions It...

Important to observe that IHL prohibitions It is important to  observe that  IHL prohibitions should be identified and followed as  their violations/breach may be considered as

Describe five major types of employee rights, QUESTION 1 What are the i...

QUESTION 1 What are the individual and situational factors that influence ethical decision making in the workplace QUESTION 2 (a) How is unemployment socially distribut

Explain court of final appeal arrived, Read Fateh Muhammad v Commissioner o...

Read Fateh Muhammad v Commissioner of Registration [2001] 2 HKLRD 659 which can be found in the westlaw HK website of our library database in which there is a summary of what the c

Procedures established under the employment rights act, Question : a. ...

Question : a. What are the procedures established under the Employment Rights Act 2008 on the reporting of labour disputes? b. One of the fundamental requirements of a val

Duty of an auditor, Duty of an auditor: The duty of an auditor general...

Duty of an auditor: The duty of an auditor generally was very carefully considered by this court in RE: LONDON AND GENERAL BANK (1895) and I cannot usefully add anything to wh

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