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
Continuing Guarantees – Negotiable Instrument A continuing guarantee is such type of a guarantee that extends to a series of transactions, so and such is not exhausted through

What are the origins of open method of coordination The origins of the OMC lie in the Lisbon European Council (March 2000), which made its introduction as the primary means of

QUESTION 1 (a) List down the remedies that are available for breach of contract (b) Elaborate on two of them QUESTION 2 What are the duties of seller and buyer under

Explain what are the primary & secondary sources of information that you can use to conduct your research. If it is primary/secondary, or both state reasons for your answer.

CASE LAW:    The aforesaid statutory provisions for the protection of minorities have been supplemented by judicial intervention in a variety of cases which are generally expl

Implied powers rule: The courts would regard such things as impliedly within the company's powers unless they are "expressly prohibited" by the memorandum. The range of transa

Question 1: Constructive dismissal is inherently different from dismissal in the sense that it is the employee who takes the initiative in considering the contract as having be

1. Tort reform refers to proposed changes in the civil system that would reduce tort litigation or damages. Proposals include, among other things,putting a cap on the amount a plai

Define the term- international implications of enforcement Agencies cooperate over time, they converge towards common principles that might then serve as the foundation for the

Consistent with the written Law However Islamic law is the law based on the Holy Koran and the teachings of the Prophet Mohammed as defined in his Sayings called "Hadith".