Gist of lord buckleys statement, Business Law and Ethics

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".

Posted Date: 1/12/2013 2:34:51 AM | Location : United States

Related Discussions:- Gist of lord buckleys statement, Assignment Help, Ask Question on Gist of lord buckleys statement, Get Answer, Expert's Help, Gist of lord buckleys statement Discussions

Write discussion on Gist of lord buckleys statement
Your posts are moderated
Related Questions
1. How do mandatory terms limit freedom of contract? 2. How do contract interpretation issues arise? 3. What is the difference between subjective and objective intent?   4

Contents of the Notice: The notice convening a meeting must be clear and explicit so that the person receiving it may be in a position to decide whether or not he ought in his

Business and Social Agreements Business Agreements Therefore is a rebuttable presumption that parties intended generate a legally enforceable agreement to example in Cr

You act for Fred who is the secured lending manager of BigBank. He has a troublesome customer, Macs Tires Pty Ltd. This is a family run tire business with three directors. The prin

Leon, a bank vice president, joined Fitness Center, Inc. (FC). He signed a contract stating, among other things, an exculpatory clause that FC

Members voluntary winding up: In a members' voluntary winding up the creditors play no part since the assumption is that their debts will be paid in full.  There is no committ

Question 1: (a) Discuss the powers and duties of the employer under the Employment Rights Act 2008? (b) Discuss the powers and duties of the worker under the Employme

Question 1: Public Private Partnership (PPP) means investment through private sector participation by a contractual arrangement between a procuring entity and a private sector

Meaning Of "Public":                    For the purposes of the prospectus issue the word "public" is declared by S.57 (1) to include "any section of the public, whether selec

Define the meaning of Lobbyists Lobbyists place a premium on information. While framing their arguments; they often turn to research and analysis that supports the case they ar