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 do you understand by collective bargaining, QUESTION 1 One of the ...

QUESTION 1 One of the main ingredients of a system of collective bargaining is the right to join and participate in the activities of a trade union. What is the extent of this

Defined specific acts that constitute an act of terrorism, Defined specific...

Defined specific acts that constitute an act of terrorism:- Convention on Offences on Board Tokyo Aircraft 1963 relates to hijacking. Unlawful Seizure of Aircraft in Hague 1

Loans to directors, Loans to Directors: Section 191(1) renders unlawfu...

Loans to Directors: Section 191(1) renders unlawful any loan made by a company to a director of the company or its holding company. It is also unlawful for the company to guar

Explain about the international commission of united nations, Explain about...

Explain about the international commission of United Nations. The International Law Commission: Established into 1948 year, the mandate of International Law Commission is

Articles of partnership - partnership law, Articles of Partnership - Partne...

Articles of Partnership - Partnership Law However a partnership need not be formed through written agreement, it is accustomed for 'Articles of Partnership' for be drawn up, s

Resident magistrate''s court , Resident Magistrate's Court Establis...

Resident Magistrate's Court Establishment Further Resident Magistrate's Court is constituted through S.3 (1) of the Magistrate's Courts Act that is provides that 'ther

Explain The international court of justice, Normal 0 false fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Advise sammy on the following issues, I. Sammy has been under continuous...

I. Sammy has been under continuous employment with World Entertainment Ltd for 5 years. Last Friday Sammy was called to the Director's Office and verbally informed that h

AUDITING, EXPLAIN THE KNGSTON COTTON MILL CASE

EXPLAIN THE KNGSTON COTTON MILL CASE

Removal of directors - company management, Removal of Directors: By s....

Removal of Directors: By s.185(1) a company may by ordinary resolution remove a director before the expiration of his period of office, but notwithstanding anything in the art

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