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Representative action:
Where individual shareholders have suffered personal loss in addition to the injury to the company one shareholder may bring a representative action on behalf of himself and all the other shareholders who have suffered similar injury. If the action is successful the plaintiff will obtain a declaration that the improper conduct has been proved. Each injured party may then claim damages without further need to prove improper conduct.
An example is Hogg v Cramphorn (1966)
Schemes of fraud: Auditors must not be made liable for not tracking out ingenious and carefully laid schemes of fraud whenever there is nothing to arouse their suspicion, and
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QUESTION 1 What measures do you consider important in ensuring good corporate governance? Explain why QUESTION 2 Explain the nature of the relationship among a bank and
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