Fraud or improper conduct, Business Law and Ethics

Fraud or improper conduct:

English courts have intervened on numerous occasions and lifted the veil of incorporation in order to circumvent a fraudulent or improper design by a bunch of scheming promoters or shareholders. This is illustrated by the decisions in Jones and Another v Lipman and Another (13) and Gilford Motor Co Ltd v Horne (14). The court's order in the latter case is usually cited as an instance of  lifting the veil but it should be noted that the  defendant (Horne) was not a member of the company and, in principle, no veil existed between him and the company which would have been lifted by the court. It is rather an instance of the court regarding the company as Mr Horne in another form ("alter ego").

Enemy Character

A company may be regarded as an enemy if, inter alia, all or substantially all of its shares are held by alien  enemies. This is illustrated by Daimler Co Ltd v  Continental Tyre & Rubber Co (Great Britain) Ltd (15). Since there appears to be no Kenya case on the point, the principles summarised by Lord Parker may be useful guidance to a Kenyan who might have to determine, in a given case, whether a particular company is to be  regarded as a friend or enemy of Kenya.

Posted Date: 1/12/2013 2:10:04 AM | Location : United States







Related Discussions:- Fraud or improper conduct, Assignment Help, Ask Question on Fraud or improper conduct, Get Answer, Expert's Help, Fraud or improper conduct Discussions

Write discussion on Fraud or improper conduct
Your posts are moderated
Related Questions
Explain United Nations Commission on India and Pakistan One such resolution dated 20th  January 1948 created United Nations Commission on India and Pakistan (UNCIP), which was


What is the use of reprisal the use of reprisal should also be categorized under the heading of the lawful use of force. It is defined as a counter action taken by a state to p

Jerry contracted with Sally to purchase Sally’s Restaurant for $50,000ion #Minimum 100 words accepted#

REGULATIONS REGARDING ALCOHOL PURCHASE AND STORAGE As YOU know, ethyl alcohol is one of the laboratory chemicals which can be misused. To control its purchase, storage and use,

Self-Confidence: Entrepreneurs are self-confident and tackle problems immediately with confidence and are persistent in the pursuit of their objectives. Most are at their best in

Relationship between Banker and Customer Therefore the relationship between a banker and the customer is a debtor-creditor association that was articulated In the chief case o

Two very important resolutions which had a great impact on description of terrorism UNSC has also declared incitement as an offence. The interpretation of terrorism formulated

Variation of class rights of the preference shareholders: This was not a variation of class rights of the preference shareholders.  The company could resolve to go keen on liq

Law institutions and delegation of authority How time-consistency plays a significant role in policy process. The problems induced by the heterogeneity leading to the problem o