Fraud or improper conduct, Business Law and Ethics

Assignment Help:

Fraud or improper conduct:

English courts have intervened on numerous occasions and lifted the veil of incorporation in order to circumvent a fraudulent or improper design by a bunch of scheming promoters or shareholders. This is illustrated by the decisions in Jones and Another v Lipman and Another (13) and Gilford Motor Co Ltd v Horne (14). The court's order in the latter case is usually cited as an instance of  lifting the veil but it should be noted that the  defendant (Horne) was not a member of the company and, in principle, no veil existed between him and the company which would have been lifted by the court. It is rather an instance of the court regarding the company as Mr Horne in another form ("alter ego").

Enemy Character

A company may be regarded as an enemy if, inter alia, all or substantially all of its shares are held by alien  enemies. This is illustrated by Daimler Co Ltd v  Continental Tyre & Rubber Co (Great Britain) Ltd (15). Since there appears to be no Kenya case on the point, the principles summarised by Lord Parker may be useful guidance to a Kenyan who might have to determine, in a given case, whether a particular company is to be  regarded as a friend or enemy of Kenya.


Related Discussions:- Fraud or improper conduct

Disadvantages of entrepreneurship development , Disadvantages of Entreprene...

Disadvantages of Entrepreneurship Development You will be your own boss and the boss of other people and make the decisions that are crucial to the business' success or fa

Determine about the mundell-fleming model, Determine about the Mundell-Flem...

Determine about the Mundell-Fleming model The basic two country Mundell-Fleming model assumes that both countries are small. It is this assumption that we modify and assume in

Salient features of the fisheries and marine resources act, Question 1: ...

Question 1: The Ministry of Agro Industry & Fisheries has come up with a new Fisheries and Marine Resources Act to provide a coherent legal and institutional framework with a v

What is the meaning of policy convergence, What is the meaning of Policy Co...

What is the meaning of Policy Convergence Under representative democracy - the number of voter with each preferred policy proposal can be illustrated by a frequency distributio

Ejusdem generis rule, Ejusdem generis rule: Therefore this rule states...

Ejusdem generis rule: Therefore this rule states whereas simple words in an Act obeyed particular words, the general words are to be made as being limited to the persons or th

Contingent and prospective liabilities of the company, Contingent and prosp...

Contingent and prospective liabilities of the company: A creditor who petitions on grounds of the company's insolvency may rely on any of the following situations to show (as

Liability of members, Liability Of Members: S.72 (1) provides that in ...

Liability Of Members: S.72 (1) provides that in the case of a reduction of share capital a member of the company so there past or present and shall not be liable in respect of

Misfeasance - winding up, Misfeasance: Under s.324, misfeasance procee...

Misfeasance: Under s.324, misfeasance proceedings may be instituted against a director, promoter, manager, liquidator or "officer" (including an auditor) of a company in liqui

State article 2 of air and outer space law, State Article 2 of air and oute...

State Article 2 of air and outer space law Article 2 states that for the purposes of this Convention the territory of a state shall be deemed to be the land areas and territori

Explain ensuring good corporate governance, QUESTION 1 What measures do...

QUESTION 1 What measures do you consider important in ensuring good corporate governance? Explain why QUESTION 2 Explain the nature of the relationship among a bank and

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