Exceptions in turquands case, Business Law and Ethics

Exceptions:

The rule in Turquand's case will not apply if:

i.The person suing the company is in fact an insider, such as a director of the company:

Howard v Patent Ivory Co (82). Such a person has access to the company's documents from which he may discover the lack of authority. Exceptionally, he may succeed against the company if he proves that he was a recently-appointed director and had not fully acquainted himself with the internal procedures of the company.

ii.  The company's articles prescribed a special resolution which had not been passed, as illustrated by Irvine v Union Bank of Australia (83).

A special resolution is registerable under s.143 of the Companies Act and if it had been passed a copy thereof would have been delivered for registration and would have been found among the company's documents at the companies registry. Its absence shall have warned the outsider that it had not been passed.

v. There were special circumstances which should have put the outsider on inquiry: Underwood Ltd v Bank of Liverpool (case No 5); Liggett v Barclays Bank (84).

vi. The transaction is ultra vires the company, since a company's agent cannot have authority to transact a business which the company itself lacks capacity to transact.

vii. The transaction relates to the issue of a forged document, such as a forged share certificate issued by the secretary without the authority of the board, as illustrated by Ruben v Great Finggall Consolidated Ltd.

viii. Knowledge of irregularity: Liggett v Barclays Bank

vii As insider.

Posted Date: 1/12/2013 5:16:14 AM | Location : United States







Related Discussions:- Exceptions in turquands case, Assignment Help, Ask Question on Exceptions in turquands case, Get Answer, Expert's Help, Exceptions in turquands case Discussions

Write discussion on Exceptions in turquands case
Your posts are moderated
Related Questions
Are you searching Canadian business law assignment tutors for help in your college and university assignments? Do you need expert’s assistance in Canadian law assignments? We at w

Part A Approach a small business owner and find out the following: a. What is the legal structure of their business? - Discretionary trust legal structure for an Accounti

Function and Powers of Chairman: In the case of National Dwellings Society v Sykes Chitty, J. stated: "It is the duty of the chairman, and his function, to preserve order,

Question 1: "A revolutionary change is occurring in the theory and practice of public administration. The approach known as New Public Management is seen by many as the new par

State in brief about the term - Reputations Reputations can be defined as the actions an agent and expected to take. If he takes it up, he establishes his reputation or otherwi

Frank, a student at Anne Arundel Community College, is on his way to class one day. He enjoys his class very much and is looking forward to this particular class on tort law, but d

Compulsory Liquidation :                                       A petition is presented to the High Court under s.218 of the Companies Act.  The petition will specify one of the

Sale of Goods However in US Law relating to the sale and purchase of goods is such contained in the Sale of Goods Act like cap 31. Therefore the Act is a reproduction of Goods

Presentment for Acceptance - Rules Relating To Acceptance Even though a bill must be presented to with acceptance and be accepted through the drawee in order to render him lia

District Magistrate's Court -Civil Appeals Moreover in S.11 (1) of the Magistrate's Court Act gives that 'any person who is aggrieved through an order of a magistrate's court