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Prospectus Issue And Statutory Provisions:
A company's shares are legally regarded as goods. Consequently, the common law rule known as "caveat emptor" applied to their sale. In particular, the company as a seller was not bound to say anything to potential buyers which would enable them to assess the risks involved. Buyers were therefore left without a legal remedy if they bought shares which they would not have bought if the relevant material facts had been disclosed by the company's agents. In an attempt to remedy this situation the Companies Act incorporated a number of statutory provisions which must be complied with.
Utmost Good Faith Whether a partnership is such contract of the chief good faith. Every one partner is entitled for utmost gaviness rom his co-partners. Therefore this equitab
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Issue is sanctioned by the court - allotment of shares: Not less than one year has elapsed since the company was entitled to commence business. This provision obviates the
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Judicial Control: Conversely the courts can declare any law made as subsidiary legislation to be invalid or unacceptable under the ultra vires doctrine. Thus the law may be de
Explain Self determination Self determination is actually the foundation of United Nations (UN) Charter. It is defined as a right of people to determine and to choose their ow
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