Suing and being sued, Business Law and Ethics

Suing and being Sued:

           Because a company is at law a different person altogether from its members it follows that a wrong to, or by, the company does not legally constitute a wrong to, or by, the company's members. Consequently:

(a)     A member or members cannot institute legal proceedings to redress a wrong to the company. The company as the injured party is, generally speaking,the proper plaintiff. This is illustrated by the facts of, and the decision in, Foss v Harbottle (6).

(b)     A member cannot be sued to redress a wrong by the company. This is illustrated by Salomon v Salomon& Co Ltd (3) in which it was held that Salomon was not liable for the company's debts and should not therefore have been sued to recover them.

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







Related Discussions:- Suing and being sued, Assignment Help, Ask Question on Suing and being sued, Get Answer, Expert's Help, Suing and being sued Discussions

Write discussion on Suing and being sued
Your posts are moderated
Related Questions
why is it important for a lawyer to address the victim

Obiter Dictum Thus now  "by the way" statement made through a judge before delivering his judgement within  a view to  strengthening or re-enforcing his reasons to the decis

WINDING UP ON: "THE JUST AND EQUITABLE GROUND": Unlike the other five grounds this one is widely interpreted and it is no objection that the petition is based on facts u

1. Indicate whether the following statements are true or false and briefly explain your answer. a. Actions by government to increase spending and by the central bank to increase

Statutory Provisions:  i) Definition of "Prospectus" A prospectus is defined by S.2 as "any prospectus, notice, circular, advertisement or other invitation offering to the

Create a Poster The summative assessment for the module is a poster session. The poster must take a theoretical perspective, supported by appropriate applied examples The p

Successive stages of a capital reorganisation: There was a sequence of general and class meetings to approve the successive stages of a capital re-organisation.  Out of 1,600

Question 1: (a) Describe the concept of fiduciary Issue. (b) Why do you think this is important in a country like Mauritius? (c) Explain a case from either your own coun

Advantages of Negotiable Instruments (i) A negotiable instrument provides a creditor regarding a better remedy, since once it has been issued like or accepted whether applicab

Several rules for Fraudulent trading: Various rules have been established to determine what is fraudulent trading: (a) Only persons who take the decision to carry on the co