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

Lapse of time - termination of an offer, Lapse of time - Termination of an ...

Lapse of time - Termination of an Offer Therefore offer of "lapses" that i.e. comes for an end robotically through operation about law whenever like: First is not

Compensation for removal - company management, Compensation for Removal: ...

Compensation for Removal: Subsection (6) provides that nothing in s.185 shall be taken as depriving a removed director of compensation or damages payable to him in respect of

Relationship of partners inter se, Relationship of Partners Inter Se W...

Relationship of Partners Inter Se Whether various terms are in utilize to denote the different specification of partners.  Then the most central of these terms are like: (

Annual general meeting - meetings and resolutions, Annual General Meeting: ...

Annual General Meeting:           Section 131(1) provides that "every each company shall in each year hold a simple meeting as its annual frequent meeting in addition to any o

Business organisation, what are the business organisation of objecetive

what are the business organisation of objecetive

Explain about the general assembly of united nations, Explain about the gen...

Explain about the general assembly of United Nations. The General Assembly: The General Assembly is the major deliberative organ of the United Nations. This is composed o

Business Ethics, As organisations affect many people, they have obligations...

As organisations affect many people, they have obligations to their employees, consumers, community and the world. They have a responsibility to conduct business in a way that is n

Best arguments to support the objections - law, Dennis and his brother, Oti...

Dennis and his brother, Otis, are charged with murdering Johnson. Eyewitnesses had seen the two defendants fighting with the victim outside a bar after midnight. Shortly afterwards

Advantages of stare decisis - certainty and predictability, Advantages of S...

Advantages of Stare Decisis - Certainty and Predictability However the doctrine of stare Decisis includes an element of certainty and uniformity in the administration and mana

Differences between registered companies and partnerships, Differences betw...

Differences between registered companies and partnerships: The basic differences between registered companies and partnerships are as follows: (a) Formation Registration

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