Fraudulent trading, Business Law and Ethics

Assignment Help:

Fraudulent Trading:

Under s.323, if the court finds that the business of a company in liquidation has been carried on with intent to defraud creditors or for any fraudulent purpose it may declare that any persons who were knowingly parties to carrying on the business in this fashion shall be liable for debts of the company as the court may decide.

It has been said that "if a company continues to carry on business and to incur debts at a time when there is to the knowledge of the directors no reasonable prospect of the creditors receiving payment of those debts, it is, in general, a proper inference that the company is carrying on business with intent to "defraud" (per Maugham J. in William C Leitch Bros (No 1)(1932).  But in another case the same judge said that there must be evidence of "real dishonesty".


Related Discussions:- Fraudulent trading

Explain the case clipperton island, Explain the Case Clipperton Island ...

Explain the Case Clipperton Island In Clipperton Island Case , an award was made in the arbitration which resolved a dispute between France and Mexico, in 1887, on the subjec

Contracts in restraint of trade, Contracts in Restraint of Trade This ...

Contracts in Restraint of Trade This is a contract through which a person voluntarily or unwillingly restricts his future liberty to carry at his trader business or profession

Terms used in contract, Terms used in Contract However there are certa...

Terms used in Contract However there are certain terms may identify conditions and warranties like are implied into every contract covered through the Sale of Goods Act where

Types of agents - agency law, Types of Agents - Agency Law Although br...

Types of Agents - Agency Law Although broadly agents are either special or might be general depending on the scope of authority.  Subsequently an agent engaged to carry a task

Analyse and discuss to minority shareholders, "Within a company there are m...

"Within a company there are many areas of potential disagreement among members. As the range of potential disagreement is very broad, so also is the scope for exploitation and abus

Defects in appointment - company management, Defects in Appointment: S...

Defects in Appointment: S.181 provides that a director's acts shall be valid despite any defect that may afterwards be discovered in his appointment or qualification. This pro

#title.CONTRACT., WHAT ARE MITIGATING FACTORS OF A CONTRACT

WHAT ARE MITIGATING FACTORS OF A CONTRACT

Approval of the scheme - mergers and winding up, Approval of the scheme - m...

Approval of the scheme - mergers and winding up: A scheme of arrangement was agreed between Hambros and Hellenic whereby the shareholders of Hellenic were to have their shares

Analysis of ethics issues case, Purpose: To enable course registrants to a...

Purpose: To enable course registrants to apply their knowledge of ethical principles, skills in ethical analysis, and use of introspection to analyze an actual case that contains

Rights of inspection, Rights of inspection: The registers and document...

Rights of inspection: The registers and documents are subject to the following rights of inspection: (a)     The company's members are entitled to inspect them, free of cha

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