Gist of lord buckleys statement, Business Law and Ethics

Assignment Help:

Gist of Lord Buckleys statement:

The gist of Lord Buckley's statement, above, may be summarised as follows: The judges will not regard a transaction undertaken by a company as ultra vires merely because it is not written in the company's memorandum of association as one of the company's objects. They would in fact regard the transaction as intra vires by implication if -

i.   it was reasonably incidental to any of the objects which have been written in the company's memorandum of association, and.

ii. It was undertaken for the sole purpose of effectuating, or achieving, the written objects, or any of them.

Regarding the criteria to be used when deciding on whether a proposed transaction is "reasonably incidental" to the objects written in the memorandum, it was stated in Henderson v Bank of Australia (1888) that what other companies with similar objects do may be a good guide for a company regarding its implied powers. But it appears that, provided a transaction is decided on by the company (at a board or general meeting) in the bona fide belief that its pursuit would enable the company to get more customers or do more business, the court would not regard the transaction as ultra vires even though it may doubt its "reasonableness".


Related Discussions:- Gist of lord buckleys statement

Procedural technicalities, Procedural Technicalities: In fact here the...

Procedural Technicalities: In fact here the procedure in the common law courts was highly technical and many good causes of action that were lost due to procedural technicalit

Legislative options for addressing phoenix activity, Q. Legislative options...

Q. Legislative options for addressing phoenix activity? There are a range of legislative options for addressing phoenix activity and the following legislative options were expl

Analyse ethical and legal issues , Fran is a 68 year old female patient wit...

Fran is a 68 year old female patient with a history of diabetes.  Fran separated from her husband, Derek, 3 years ago (although they are not divorced) and over the past few years t

How to solve multiple equilibria problem, How to solve multiple equilibria ...

How to solve multiple equilibria problem The approach of equilibrium selection to solve multiple equilibria problem aims to retain the definition of equilibrium and accepts th

Explain the white paper of parliamentary procedures, Explain the white pape...

Explain the white paper of parliamentary procedures. White Paper: It sets out the intention of the legislation and takes in account comments which have been received onto

Compliance conference , Can general jurisdiction be obtained? Explain why/w...

Can general jurisdiction be obtained? Explain why/why not.  The Company has paid for three (3) trips for Patty to attend Prop 65 conferences in CA.  You discover that she did no

Determine the term - cyclic majority voting, Determine the term - cyclic ma...

Determine the term - cyclic majority voting The cyclic majority voting, a problem first recognized by Marquis de Condorcet in 1785, the indeterminacy of voting process, has bee

Objects clause, Objects Clause: Reasons for Stating Objects  Sectio...

Objects Clause: Reasons for Stating Objects  Section 5 (1) (c) requires the memorandum of association to state the objects of the company. The section does not however indi

Find out the tort, 1. Chuck walked into a room. As a joke, Matt stuck his l...

1. Chuck walked into a room. As a joke, Matt stuck his leg out so that Chuck would trip Chuck tripped and in so doing, dropped the bottle of soda he was carrying. In the

Relationship between banker and customer, Relationship between Banker and C...

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

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd