Amount of compensation payable, Business Law and Ethics

Amount of compensation payable:

In CLARK V URQUHART (44) the court explained that the amount of compensation payable under S.45 of the Act is calculated or measured in the same way as damages for fraudulent misrepresentation is measured. The court also explained that the word "compensation" was chosen in order to avoid the "invidious association" of damages with dishonesty in such a situation". In fact the specified persons were to be made liable as a matter of policy, irrespective of their moral innocence.

A person sued under S.45 can rebut the presumption of liability by proving that-

i)                    having consented to become a director he withdrew his consent before the issue of the prospectus and that it was issued without his authority or consent; or

ii)                  the prospectus was issued without his knowledge or consent, and which on becoming aware of its matter he forthwith gave reasonable public notice that it was issued without his knowledge or authority; or

iii)                after the issue of the prospectus and before allotment thereunder he, on becoming aware of the untrue statement, withdrew his consent to the prospectus and gave reasonable public notice that he had done so and why; or

iv)                as regards every untrue statement not purporting to be made on the authority of an expert or of a public official document or statement, he had reasonable ground to believe that the statement was true; or

v)                  the statement was made by an expert and the expert consented to the inclusion of his statement in the prospectus and that he believed the expert to be competent to make the statement; or

vi)                the statement was taken from a public official document or was made by an official, and was a correct and fair representation of the document or statement.

Posted Date: 1/12/2013 3:11:18 AM | Location : United States







Related Discussions:- Amount of compensation payable, Assignment Help, Ask Question on Amount of compensation payable, Get Answer, Expert's Help, Amount of compensation payable Discussions

Write discussion on Amount of compensation payable
Your posts are moderated
Related Questions
QUESTION 1 (a) What are the three main features of security? Define the different types of security that banks normally take to secure credit facilities (b) The Borrower Pro

As you think about the rights of workers enhanced by anti-discrimination laws, have society and organizations become more tolerant and competitive due to less discrimination in the

Unsecured trade creditors: It refers to a "class" of members or of creditors. Obviously if two or more companies are involved or if one company has two classes of shares, eg.

Unauthorized Contracts: It may sometimes happen that a company's agent, while entering into a contract on behalf of the company, exceeds his powers under the articles of assoc

Q. Impact of phoenix activity on employ superannuation? Employees experience a range of impacts other than lost wages, entitlements and superannuation from phoenix activity. Fi

Formation of Contract - Law of Contract However a legally binding agreement prepared between two or persons or more parties.  Whereas it has also been explained as a promise o

QUESTION 1 The global business sector has been expanding rapidly in Mauritius. Discuss the role of the FSC in this sector QUESTION 2 Tony is the director of Xservices L

Question 1: (a) According to Archie Carroll what are the four interrelated aspects of corporate social responsibility? Use examples from the Mauritian context to illustrate you

Shares Issued At A Premium: A company may at times issue its shares at a price above their nominal value, i.e at a premium. This may be necessitated by the fact that the compa

State in brief aboput the Monetary Effects Besides real income effects there will also be monetary effects if nations seek to intervene in foreign exchange markets which govern