their funds back. Determining whether a company is insolvent predominantly involves using a cash flow test, but must be determined by reference to the facts of each case. A number of factors that a reasonable person would take into account in determining whether a company is insolvent are 14 indicators in insolvency situation: ASIC v Plymin (2003) VSC 123. Dart Limited meets several factors of insolvency: • Continuing losses. Company’s expenses exceeded income by 2.5 million every month since early
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3. Introduction Corporate Governance has become a subject in its own right over the past decade but Corporate Governance issues are as not new- there have been tensions from the beginning as the case of Salomon v Salomon [1897] illustrates. Despite the longevity the phrase ` corporate governance ` is somewhat `MALLEABLE`- i.e almost every author or book on the subject offers a different view of what the phrase means. In the broadest sense, it means the question of who should own and control the
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Part A Potential Liability Since the House of Lords decision in Salomon v Salomon & Co Ltd, it has been recognised that an inflexible application of the concepts of separate entity and limited liability will imply that can lead to undesirable consequences. Under certain occasionally, the court will go behind the corporate veil. In refer to cases of Yap Sing Hock v Public Prosecutor where the Supreme Court Peh Swee Chin SCJ would suggest the veil to be lifted by statutes, e.g. the Companies Act
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These questions have been prepared by students of BUSL301 Session 3 2012-2013. Note – I have not checked or altered them - some aren’t very clear – some may be wrong - there are spelling errors etc. Nonetheless they are still practice (but remember students don’t prepare the midsession test – I do) The ANSWERS provided by students are at the end of the questions Try the questions then look at the suggested answers 1. Which of the following statements is most accurate? a) Shares are always transferable
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observe all the provisions of the memorandum and the articles. Hence, the provision in the article is said to be effective. However, there are alternative arguments to this case. The Singapore court not only takes the Singapore CA into consideration during a ruling, but also relevant previous law cases. For this issue, the Hickman v Kent or Romney Marsh
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“In order to effectively punish and deter corporate crime, the law should impose criminal sanctions on individuals rather than on corporations.” Introduction The purpose of this research report is to discuss whether criminal sanctions should be brought upon individuals or on corporations when corporate crime is committed. In determining out who should criminal sanctions be imposed on, a key factor to consider back on is the purpose of imposing criminal sanctions, which is to ‘effectively punish
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task of attributing liability for manslaughter to a corporate entity. The essential problem is that a corporation is granted an independent status by a pragmatic legal fiction which affords an identity to entity which has no physical existence. Salomon v. Salomon & Co. [1897] is authority on this point. This is done in order to allow the corporation to assume responsibility and rights in its economic activities and this device has proved extremely useful in encouraging commercial risk taking and entrepreneurial
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Law of Business Organisations SUMMARY 2010 LAWSKOOL PTE LTD BUSINESS ORGANISATIONS LAW TABLE OF CONTENTS 1 :Types Of Business Organization.................................................... 9 1.1 Sole Proprietorships .......................................................................................... 9 1.2 Partnerships ..................................................................................................... 10 1.3 Limited Liability Partnerships ..............
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Running Head: Business Law Business Law Oweya Vincent Makaya University of Nairobi THE COMPANY AS A JURISTIC PERSON VERSUS RESPONSIBILITY FOF THE DIRECTOR’S ACTIONS. Introduction: For a very long time a company has been treated as a corporate entity or a juristic person. In fact the concept of limited liability stems from this premise. Despite being an artificial person a company is wholly a creature of human beings, by human beings and for human beings. It solely
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Workmen v. Associated Rubber Industry Ltd. (1985) 4 SCC 114 Facts of the Case – The Associated Rubber Industry Ltd. had purchased, some years back, shares of INARCO Ltd. by investing a sum of Rs 4,50,000. They were getting annual dividends in respect of these shares and the amount so received was shown in the profit and loss account of the company year after year. It was taken into account for the purpose of calculating the bonus payable to the workmen of the company. Some time in the course
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