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
Question 1: (a) State five differences between Law and Ethics. (b) Define what is meant by a ‘code of ethics' and state its importance for engineers. (c) Define the followin

Explain the important provisions of the UN charter Some important provisions of the UN charter are the Article 92, which makes the ICJ an integral part of the UN charter, Artic

Consideration - Element of Contract Just to an agreement to constitute a contract the common law of the England then adopted in the US, requires such, must be supported with c

Hi Dear, Could you please help me in online exam in ( Bus Law for Accounts).!! the exam will be open within one hour and half. Thank you

Question 1: Should the Judicial Committee of the Privy Council be maintained at the summit of the hierarchy of our judicial system? Critically discuss on the above. Ques

Define the term - authoritative government decision We can sum up by way of saying that the intent to implement a policy is not the same thing as a real policy. Failure to impl

Partnerships - Unincorporated Associations Conversely Partnership is defined through S.3 (1) of the Partnership Act as "the relation that subsists between persons carrying at

Legal Profession - Judges However in general speaking that judges of the High Court of Kenya are appointed from among advocates of in case of seven years' standing as like i.e

Decode the Code Problem Description Smugglers are becoming very smart day by day. Now they have developed a new technique of sending their messages from one smuggler to another. In

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