Suing and being sued, Business Law and Ethics

Assignment Help:

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.


Related Discussions:- Suing and being sued

Discuss legal relationship between a bank and its customer, Question 1: ...

Question 1: Discuss the legal relationship between a bank and its customer with reference to the responsibilities of the parties towards each other. Question 2: This qu

Lifting the veil of incorporation, Lifting the Veil of Incorporation: ...

Lifting the Veil of Incorporation: The legal rule that a registered company is at law a different person altogether from the subscribers to the memorandum of association and o

Explain two scenarios of restraint of trade clause, Explain two scenarios i...

Explain two scenarios in which a restraint of trade clause would typically be used.

Statutory interpretation, STATUTORY INTERPRETATION: Conversely the pre...

STATUTORY INTERPRETATION: Conversely the precise connotation of a law written in an Act may cause a legal dispute.  So this is so because, even though the law is written and c

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

Brief theoretical conceptualization of multiple equilibria, Brief theoreti...

Brief theoretical conceptualization of  Multiple Equilibria We now come to a brief theoretical conceptualization which may give us a basis for choice of agenda or a policy prop

Cs 652 - programming problem, Q. CS 652 - Programming problem? Without ...

Q. CS 652 - Programming problem? Without using the system() function to call any bash commands, write a python program that will implement a simple version of the diff command.

Liquidators and receivers, Liquidators and Receivers: The distinction ...

Liquidators and Receivers: The distinction between liquidators and receivers must be kept clear: (a) a receiver is a representative of secured creditors appointed by them (

State the definition of equilibrium, State the Definition of equilibrium ...

State the Definition of equilibrium The approach of equilibrium refinements aims at strengthening the definition of equilibrium itself in order to purge others out as possible

Executions take place using a lethal injection, Most executions take place ...

Most executions take place using a lethal injection.  The company that manufactures the drug that is most used has now announced that it is choosing to no longer produce that drug.

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