Purchase of shares - voidable contracts, Business Law and Ethics

Purchase of Shares - Voidable Contracts

However an infant who applies to is allotted, a company's shares becomes a member to the company under S.28 (2) for the Companies Act from the moment such his name is entered into the register of members. Hence he then acquires membership rights so then becomes subject to membership obligations such any other member.  Conversely he has a legal right to rescind the contract whether as has been a total failure of thoughtfulness that he paid the money for i.e. the shares have become worthless.

Therefore in Steinberg v. Scala (Leeds) Ltd. would the plaintiff so an infant shareholder, instituted rectification proceedings about a view to as;

  1. First is Being relieved from liability with calls, and one is
  2. Second to Recovery of money she had before now paid.

Conversely the court held such she should not recover the money that already paid since the shares had some value but she as the plaintiff then had not received any dividends from the company. Hence she was entitled to have her name removed from such the members' register for as the company had agreed to do.

Posted Date: 1/22/2013 2:20:11 AM | Location : United States







Related Discussions:- Purchase of shares - voidable contracts, Assignment Help, Ask Question on Purchase of shares - voidable contracts, Get Answer, Expert's Help, Purchase of shares - voidable contracts Discussions

Write discussion on Purchase of shares - voidable contracts
Your posts are moderated
Related Questions
Evolution of Contracting  Contracts have evolved over centuries. It is a lawful binding relation between two or more parties. The contractual relationships can occur - from a s

Doctrine of "Constructive Notice":  The doctrine of "constructive notice" is a rule of company law to the effect that a person transacting business with a company is taken to

QUESTION 1 The use made of decision-making bodies such as commissions, boards, tribunals and statutory bodies for the purpose of achieving celerity in public affairs opens the

WHAT ARE MITIGATING FACTORS OF A CONTRACT

CONDITIONS FOR RELIEF: In H.R. Harmer Ltd (1959) Jenkins L.J. summarised the conditions which must be met before relief under the section can be granted by the court when he s

Beneficial Service - Binding Contracts According to such, a contract relates service or apprenticeship is such binding on an infant - which mostly provided it is substantially

A team of players from a Singapore-based university was planning a trip to Cameron Highlands, where an exhibition on the history of tea, the process of growing, harvesting and proc

Recommendations for addressing phoenix activities Over the past two decades there have been a significant range of proposals for addressing phoenix activity. Most of these opt

APPLIED LAWS: However section 2 of the Interpretation and General Provisions Act specified like an "applied law" as:; (a)   here an Act of the legislature of another countr

Alteration of Capital: A company is empowered by S.63 to alter the provisions of its memorandum of association which relates to its registered or authorised capital. However,