ACCA Paper F4 Free course notes

corporAte And Business lAw

(ENgLIsh)

Paper

F4

ACCA QuAlifiCAtionCourse notes

June 2011 examinations

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F1 Accountant in Business

F2 Management Accounting

F3 Finanticial Accounting

F4 Corporate & Business Law

F5 Performance Management

F6 Taxation (UK)

F7 Financial Reporting

F8 Audit and Assurance

F9 Financial Management

P1 Governance, Risk & Ethics

P2 Corporate Reporting

P3 Business Analysis

P4 Advanced Financial Management

P5 Advanced Performance Management

P6 Advanced Taxation (UK)

P7 Advanced Audit & Assurance

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June 2011 Examinations Paper F4

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Contents

1 Structure of The Legal System 1

2 Courts 7

3 Statute Law 11

4 Contract Law 17

5 Common Law 35

6 Law of Tort 37

7 Employment Law 43

8 Agency Law 51

9 Partnership 53

10 Company Law 59

11 Company Law: Directors and Officers 77

12 Company Law: Meetings and Resolutions 91

13 Company Law: Loan Capital 99

14 Company Law: Liquidations 103

15 Company Law: Corporate Governance 109

16 Company Law: Illegalities 113

17 Capital Maintenance 117

18 Cases 123

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Chapter 1

StruCture of the LegaL SyStem

Civil Law

• Privatelaw

• Tosettledisputesbetweenindividuals

• Noconceptofpunishment

• Objectiveistocompensatethewrongedparty

• Needtoprove‘onthebalanceofprobability’

• Suedincourt

• Ifliable,thencompensationpayable

• Plaintiffanddefendant

• Personalactionbroughtbytheaggrievedparty

• Courtmayawarddamagesoranequitableremedyifdamagesareinappropriate

1June 2011 Examinations Paper f4


Criminal Law

• Publiclaw

• Awrongdoerhasbrokenthelaw

• Awrongdonetosociety

• Prosecutedincourt

• Ifguilty,thenpunished

• Communityservice,fine,imprisonment

• Prosecutorandaccused

• Needtoprove‘beyondreasonabledoubt’

• Policedecidewhethertoprosecute

• ThisdecisionisreviewedbytheCrownProsecutionService

June 2011 Examinations Paper f4

StructurE of thE LEgaL SyStEm chapter 1 2

Common Law

• Developmentstartedwitheffectfrom1066

• King’srepresentativesattendedlocalcourts

• ThenmetinLondononaregularbasistodiscuss

• Overaperiodof200years,lawwascommonised–“CommonLaw”

• CornerstoneofCommonLawisjudicialprecedent

• Ratiodecidendiandobiterdicta

• Withcommonisationcamerecognitionofdeficiencies

• Highlightedtheneedforalternativeremedies–Equity

• CommonLawremedyis‘damages’–amonetaryaward

• CommonLawcourtswereseparatefromcourtofequityuntilthelatenineteenthcentury


StructurE of thE LEgaL SyStEm chapter 1

Equity Law

• GrewfromtherecognitionofdeficienciesofCommonLaw

• Ifamonetaryawardofdamageswasnotappropriate,therewasnothingelsetooffer

• Infourteenthcentury,Aequitas

• Chancellor’scourt

• Earlyseventeenthcentury,EarlofOxford’scase

• Equityshallprevail

• Confirmedby1873–1875JudicatureActs

• Mainremedies:

• Specificperformance

• Injunction

• Rescission

• Rectification

• RemediesaregivenatCourt’sdiscretion

• Onlygivenifdamagesisinappropriate



Ratio Decidendi

• Ratiois‘thereasonforthedecision’

• Ratioisbindingonfuturejudgesinsimilarcases

• Reversing–highercourtreverseslowercourtdecisioninsamecase

• Overruling–highercourtoverruleslowercourtdecisionindifferentcase

• Distinguishing–courtavoidsearlierprecedentbydistinguishingthefacts

• Rationotbindingiftooobscure

• Rationotbindingifmadewithoutcare(perincuriam)

• Rationotbindingifinconflictwithabasicprincipleoflaw

• RationotbindingifinconflictwithEuropeanlaw

• Rationotbindingiftoowide

• Rationotbindingifmadeininferiorcourt


StructurE of thE LEgaL SyStEm chapter 1

Human Rights Act

• Rightsto:

• life

• freeassembly

• personalprivacy

• respectforprivateandfamilylife

• bodilyintegrity

• personalliberty

• participateingovernment

• protectionofthelaw

• toownproperty

• Freedomofexpressionandconscience

• Freedomofassociation

• Noarbitrarysearchesorseizures

• Economicandsocialrights

• Genderrecognition

• FromEUlaw,freedom...

• ofmovementbetweenEUmemberstates

• ofprovidingservices

• ofmovingcapital

• ofmovinggoods



Chapter 2

Courts

Hierarchy of the Courts

• EuropeanCourtofJustice(ECJ)

• BindsallEnglishcourts

• Notboundbyanyone,notevenitself

• SupremeCourt(judicialcapacity)(SC)

• BindsallEnglishcourts,butnotitself

• BoundbyECJ

• CourtofAppeal(CofA)

• Bindsalllowercourts

• BoundbyECJ,SCanditself……..

• ……..unless

• …..unless

• Twosimilardecisionsconflict–mustthendecidewhichtofollow

• EarlierdecisionconflictswithalaterSCdecision

• Earlierdecisionmadeperincuriam

7June 2011 Examinations Paper F4


Hierarchy of the Courts continued

• HighCourt(HC)

• 3divisions

• Bindsalllowercourts

• Boundbyallhighercourts

• Anditself

• CrownCourt(CrownC)

• Criminalcases

• Bindsno-one,notevenitself


• CountyCourt(CountyC)

• Civilcases




Courts Chapter 2 8

Hierarchy of the Courts continued

• MagistratesCourts(MC)



• Tribunals(egEmploymentTribunal)

• Lessformalprocedures

• Quicker

• Hearsdisputesbetweenemployeesandemployers

• Canappealto….

• EmploymentAppealTribunal(EAT)

• EqualstatusasHC

• CanfurtherappealtoCofA

• Butonlyonapointoflaw,notonamatteroffact


Courts Chapter 2

Tracking

• 3typesoftracking:-smallclaims,fast,multi

• Smallclaimstrack

• <£5,000

• Quick

• Informal

• Noneedforlegalrepresentation

• FastTrack

• £5,000<£15,000

• Trialwilllast<1day

• Lessformalcourtprocedures

• Claimwillbedeterminedwithin30weeks

• MultiTrack

• £15,000

• Fullcourthearing,butmanagementconferenceheldtoencouragealternativedisputeresolution


Courts Chapter 2 10

Chapter 3

Statute Law

Statute Law

• Parliamentpasseslaws(statutes),andonlyparliamentcanchange/repealthoselaws

• Greenpaper –aproposalfornewlaw

• Whitepaper –aftercommentsreceived,adraftforthenewlaw

• Firstreading –introductiontotheHouse

• Secondreading –debateaboutthemeritsoftheproposedlegislation

• Committeestage–all-partycommitteediscussandamendthedraft

• Reportstage –theamendeddraftthenpresentedtotheHouseforapproval

• Thirdreading –finalapprovalbytheHouse

• SameprocedureintheotherHouse

• RoyalAssent



Statutory Interpretation Rules

• Literalrule–ordinaryeverydaymeaning,unless….

• Goldenrule….wouldleadtoanabsurdity

• reSigsworth

• WhitelyvChappell

• Mischiefrule-whatisthestatutetryingtocontrol

• GardnervSevenoaks

• GorrisvScott

• Ejusdemgeneris

• EvansvCross

• Expressiouniusestexclusioalterius

• Nosciturasociis

• Inparimateria

• Purposiveapproach,forexample,civilpartnerships

• CannotinterpretstatutewhichwouldleadtoconflictwithEuropeanLaw


StatutE Law Chapter 3 12

Statutory Interpretation Presumptions

• Aswellasbeingboundbyrules,judgesarealsoboundbypresumptions

• Statuteisnottoalterexistingcommonlaw

• Wherestatutedeprivesapersonofhisproperty…

• Statutedoesnotoperateretrospectively

• StatutedoesnotbindtheCrown

• Statuteisnottodepriveapersonoftheirliberty

• StatuteoperatesthroughouttheUK…

• …butnotinconflictwithEurope

• Unlessperfectlyclear,statuteisnottocreateanoffenceofabsoluteliability

• Statuteisnottoconflictwithexistingstatute


StatutE Law Chapter 3

Aids to Interpretation

• 2types:Intrinsicandextrinsic

• Intrinsic

• Thetitleofthestatutemaygiveanindicationofitsobjective

• EgAnzac(RestrictiononTradeUseofWord)Act1916

• Thepreamble–theintroductiontothestatuteatthestartofthedocument

• Interpretationsectionwithinthestatute

• Marginnotes

• Extrinsic

• Reportsofcommittees

• Hansard

• Dictionary

• Booksofauthority

• InterpretationAct1987


StatutE Law Chapter 3 14

Delegated Legislation

• Statutoryinstruments(responsibleministers)

• Bye–laws(Burnley)

• RulesofCourt(madebyjudiciary)

• Professionalregulations(egGeneralMedicalCouncil)

• OrdersinCouncil(privycouncil–veryrare)

• ADvAntAgeS / ImPoRtAnce

• Savesparliamentarytime

• Greaterflexibility

• Allowsgeneralprinciplestobewrittenintostatute,withfinedetailaddedlaterbyminister

• Allowsveryquickpassingofstatuteincasesofegnationalemergency

• Preventsparliamentfrombeingoverwhelmedwithexcessivework-load


StatutE Law Chapter 3

ChaT WiTh aCCa sTudenTs


Chapter 4

ContraCt Law

• Acontractisanagreement,supportedbyconsideration,madewithintentiontocreatelegalrelations.

Invitations, offers and acceptance

• Aninvitationmustbedistinguishedfromanoffer

• Aninvitationisnotcapableofacceptance

• Aninvitationisinvitinganotherpersontomakeanoffer

• Goodsinasupermarketareinvitations(Boots)

• Goodsinashopwindowareinvitations(Bells)

• Advertsarenormallyinvitations(Birds)

• Veryoccasionally,advertsmaybetakentobeoffers(Balls)

• Mailcataloguesareinvitations(GraingervGough)

• Theprocessofanauctionsaleconstitutestheauctioneerinvitingofferstobemade

• Anadvertofferingarewardisanoffer,notaninvitation(WilliamsvCarwardine,RvClark,CarlillvCarbolic)



Termination of Offer

• Mayberevokedatanytimebeforeacceptance

• Revocationmustbecommunicatedtotheofferee

• Postalruledoesnotapply

• Lapseoftime(RamsgateVictoriaHotelvMontefiori)

• Rejection(HydevWrench)

• Death(personalservices)

• Notificationofdeath(non-personalservices)(BradburyvMorgan)

• Failureofaconditionprecedent

• Noticeofrevocationmaybecommunicatedthroughareliablethirdparty(DickinsonvDodds)

• Counteroffer

• Acceptance

• Refusal


ContraCt Law Chapter 4 18

Offers

• Halfofthe‘agreement’

• Anexpressionofwillingnesstobeboundonspecificterms

• Mustbecertain(GunthingvLynn)

• Muststillexistwhen‘accepted’

• Mustbedistinguishedfrominvitations

• Mustbedistinguishedfromstatementsofintent(HarrisvNickerson)

• Aresponsetoarequestforinformationisnotanoffer(HarveyvFacey)

• Arequestforinformationisnotacounteroffer(StevensonvMcLean)

• Revocationmustactuallybecommunicatedtotheofferee(ByrnevVanTienhoven)

• Maybemadetotheworldatlarge(RvClark,WilliamsvCarwardine,CarlillvCarbolic)


ContraCt Law Chapter 4

Acceptance

• Theotherhalfofthe‘agreement’

• Acceptancemustbecompleteandunconditional

• Acceptance cannot vary the original offer.Thatwould be a counter-offer ( Northland Airlines v DennisFerrantiMeters)

• Theoffermuststillbe‘open’atthetimeofacceptance(HydevWrench)

• Acceptancemust be communicated to the offeror, but offerormaywaive the right of communication(CarlillvCarbolic)

• Itmaybecommunicatedbyareliablethirdparty(PowellvLee)

• Silencecannotbeacceptance(FelthousevBindley)

• Acceptancemaybeby conductonce you’ve started ( Brogden vMetropolitanRailways ) ( Errington vErrington)

• Postalruleapplies(HouseholdFireInsuranceCovGrant)

• Acceptancemustbemadewithinareasonabletime(RamsgateVictoriaHotelvMontefiori)



Consideration

• Everycontractmustbesupportedbyconsiderationexceptspecialty

• Considerationisatwo-waythinginsimple/parolcontracts(onlyonewayisnecessaryinspecialtycontracts/deeds)

• CurrievMisa

• DunlopvSelfridges

• Executed–anactinexchangeforapromise

• Executory–apromiseinexchangeforapromise(oranact)

• Pastconsiderationisnoconsideration(reMcArdle),(RoscorlavThomas)

• Considerationmustbelegalandpossible

• Considerationmustmovefromthepromisee(privityofcontract)

• Courtsmayimplyanimpliedpromisetopayareasonablesum(LampleighvBraithwait)



Consideration – Sufficient Not Necessarily Adequate

• Courtswillnotlookattheadequacyofagreedconsideration

• Considerationmusthavesomevalue(sufficient)(ChappellvNestle)

• Notsufficientifinaccordancewithanaturaldutyalreadyowed(WhitevBluett)

• Notsufficientifinaccordancewithalegaldutyalreadyowed(CollinsvGodefroy)

• Notsufficientifinaccordancewithacontractualdutyalreadyowed(StilkvMyrick)

• Ifoverandaboveanaturalduty,OK(WardvByham)

• Ifoverandabovealegalduty,OK(GlasbrookvGlamorgan)

• Ifoverandaboveacontractualduty,OK(HartleyvPonsonby)

• WilliamsvRoffey

• ThomasvThomas



Privity of Contract

• Onlyapartytoacontractmaysuetoenforceit,butthereareexceptions

• Apersonentitledtobenefitunderthirdpartymotorinsurancecansuetheinsurer

• Aprincipalmaysuetoenforceacontractenteredintobyhisagent

• Aholder-in-due-courseofabillofexchangecansueallpriorparties

• Whereaspecialrelationshipexists;forexample,anexecutormaysuetoenforceacontractenteredintobythedeceased(BeswickvBeswick)

• Abeneficiarymaysueatrustee(KeechvSandford)(ShamiavJoory)

• Amanufacturerofgoodsmaybesuedbytheultimateconsumer(DonohuevStevenson)

• Anemployermaybesuedforthenegligentacts ( tort,notcontract )of itsemployees(MerseyDocksvCoggins)

• Restrictivecovenantsonlandapplytosubsequentowners(TulkvMoxhay)

• Incollateralcontracts,aninjuredpartycansueeventhoughtheotherpartyisnotapartytothecontract(ShanklinPiervDetelProducts)



Pinnell and its Exceptions

• Generalprinciple–partpaymentofadebtdoesnotachievefullsettlement(Pinnell’scase)

• IllustratedbyFoakesvBeer,butthereareexceptions

• Receivingsomethingdifferenttowhichyouwerenotalreadyentitled

• Goodsinsteadofcash

• Settlementbeforetheduedate

• Arrangementwithcreditorsgenerallythatcollectivelytheyagreetoacceptonlypartpayment

• Paymentbysomeoneotherthanthedebtor(WelbyvDrake)

• Paymentatadifferentlocationthanoriginallyagreed

• Doctrineofpromissoryestoppel

• CentralLondonPropertyTrustvHighTreesHouse

• CombevCombe

• D&CBuildersvRees



Intention to Create Legal Relations

• Maybeexpressorimplied

• Presumedunlessrebutted

• Domesticarrangements,husbandandwife,livingtogether

• BalfourvBalfour

• SpellmanvSpellman

• Domesticarrangements,husbandandwife,livingapart

• MerrittvMerritt

• Domesticarrangements,otherthanhusbandandwife

• SimpkinvPays

• JonesvPadavatton

• ParkervClark

• Commercialagreements

• Rose&FrankvCrompton

• Expressexclusions–bindinginhonouronly

• JonesvVernonPools

• ApplesonvLittlewoods

• Presumptions–assumeduntilprovedotherwise

• Rebuttal–disprovingapresumption

• CarlillvCarbolic–paymentof£1,000intobankaccount



Representations

• Nottermsofacontract

• Pre-contractualstatementsofsomeknownorprovablefactmadewiththeintentionofinducinganotherpersontoenteracontract

• Notastatementoflaw

• Nororopinion,unless...

• ...itisclearlynotagenuineopinion(BissetvWilkinson)

• Notastatementofintent

• iftherepresentationisfalse,that’samisrepresentation



Contractual Terms

• Conditionsandwarranties

• Atermwhichisaconditionisfundamentaltothecontract

• Breachofatermwhichisaconditionallowstheinjuredpartytotreatthecontractasdischargedandsuefordamages

• PoussardvSpiersandPond

• Awarrantyissuperficialtothecontract

• Breachofwarrantyallowstheinjuredpartytoclaimdamages

• Butthecontractisnotdischarged

• BettinivGye

• Innominatetermsarethosewhereitisnotclear,untilbreached,whethertheyarefundamentalormerelysuperficial

• UniversalFurnitureProductsvMapleFlockCompany



Contractual Terms

• Maybeexpressorimplied

• Expresstermsarethoseagreedbythepartiesandmaybewrittenintothecontractorsimplyagreedorally

• Impliedtermsmaybejudiciallyorstatutorilyimplied

• Judiciallyimpliedterms-businessefficacy(TheMoorcock)(ExpressNewspapersvSilverstone)

• Judiciallyimpliedterms–tradecustom(HuttonvWarren)

• Judiciallyimpliedterms–courseoftrade(HillasvArcos)

• StatutorilyimpliedtermsegSaleofGoodslegislation

• Title

• Satisfactoryquality

• Fitforpurpose(BrownvCraiks)

• Sample

• Description

• Limitedabilitytoexcludestatutorilyimpliedterms

• TermretitlecannotbeexcludedinANYcontract

• OthersfromSaleofGoodslegislationcannotbeexcludedinaconsumercontract



Exclusion Clauses

• Usedincontractsinanattempttoeliminateorlimittheextentofabreachingparty’sliability

• Mustbecommunicatedtotheotherpartyatthetimethecontractisenteredinto(OlleyvMarlboroughCourtHotel)(ThorntonvShoeLaneParking)

• Shouldbebroughttotheattentionoftheotherparty(ChapeltonvBarryUDC)(ThompsonvLMSRailway)

• Whereadocumentapparentlyhasalegalaffect,shouldmakesurebeforeyousignit(L’EstrangevGraucob)

• Oralstatementsbyanemployeecandestroytheeffectivenessofanexclusionclause(CurtisvChemicalCleaningCo)

• Wherepartieshaveahistoryoftrade,otherpartymaybedeemedtobeawareoftheexclusionclause(SpurlingvBradshaw)

• Butthiscourseoftradeshouldbemorethan3or4occasionsintheprevious5years(HolliervRamblerMotors)

• HardwickvSuffolk–morethan100timesina3yearperiod

• Anyambiguitywillbereadstrictlyagainstthepartyseekingtorelyonit(AndrewsvSinger)

• Possibletoexcludeliabilityforfundamentalbreach(PhotoProductionsvSecuricor)



Unfair Terms Legislation

• UnfairContractTermsAct1977andUnfairTermsinConsumerContractRegulations1999

• Restrictorlimitextentofliabilityfornegligenceinconsumercontracts

• Somearevoid,othersaresubjecttoatestofreasonableness

• Cannotexcludeliabilityfornegligenceresultingindeathorpersonalinjury

• Cannotexcludeliabilityforpartialorincompleteperformancebytheseller

• Cannothaveatermwhichbindstheconsumerbutallowssellertoavoidthecontract

• Reasonable?S11UCTA77takesaccountof:

• Relativebargainingpower

• Anyinducementoffered,ornormaltradecustom

• Specialorderedgoods

• Fairandequitabletreatmentoftheconsumerbytheseller

• Extentofabilitytocoverbyinsurance

• Regulationsapplytotermswhichhavenotbeenseparatelynegotiated

• Aconsumerisa‘naturalpersonwhoisactingforpurposesoutsidehisbusiness’

• Anunfairtermis“anytermwhichcausesasignificantimbalanceintheparties’rightsandobligationstothedetrimentoftheconsumer”



Breach of Contract

• Maybe‘during’or‘anticipatory’

• ‘During’–onepartyrefusestocontinue

• injuredpartymaytreatthecontractasdischarged(ifabreachofcondition)andsuefordamagesimmediately

• ‘Anticipatory’-onepartygivesnotice,beforethecontractstartdate,thattheywillnotgoaheadwiththeirobligations

• injuredpartymaysueimmediately(HochstervDeLaTour)

• orignore,goaheadwiththeirobligations,andthensue(WhiteandCarterCouncilsvMacGregor)

• orwait,andhopetheotherpartywillchangetheirminds

• butiftheychoosetowait,theycouldlosetheirrighttosue(AveryvBowden)

• tobeabletoachievefullcompensation,theinjuredpartymusthavebeeninapositiontocompletetheirobligationatthedatethecontractwasduetostart

• TheMihalisAngelos



Damages

• 2partsto‘damages’-remotenessandmeasurement

• Anawardofdamagesisthemaincommonlawremedy

• Intendedtobeanawardofmonetarycompensation

• Itisnotintendedasapunishment

• Remoteness–onlyawardedifthedamagesufferedshouldhavebeeninthereasonablecontemplationoftheordinaryman

• Losssufferedshouldeitherariseasanaturalconsequenceofthebreachor…

• …thebreacherwasawareofthespecialcircumstancesoftheinjuredparty

• HadleyvBaxendale

• VictoriaLaundryvNewmanIndustries

• ReTheHeronII



Damages – Measurement

• Courtsdeterminehowmuchawardisnecessarytoputtheinjuredpartyintothepositiontheywouldhaveachievediftherehadbeennobreach

• C&PHaulagevMiddleton

• Maytakeaccountofspeculativeloss(ThompsonvRobinson)

• ….butmaynot(AngliaTVvReed)(LazenbyGaragesvWright)

• mayconsidernon-financialloss

• JarvisvSwanTours

• …butmaynot(AlexandervRollsRoyce)

• ifthecostof‘repair’faroutweighsthelosssuffered,courtsmaymakeanawardbasedonlossofamenity

• RuxleyElectronicsvForsyth

• Theinjuredpartyhasadutytomitigatetheirloss



find Your sTudY buddY


Chapter 5

Common Law

Remedies for Breach

• Commonlawandequity

• Damages(CL)

• Actionforprice(CL)

• Quantummeruit(CL)HoenigvIsaacs,PlanchevColborn,DeBarnardyvHarding

• Specificperformance(E)

• Injunction(E)

• Rescission(E)

• Rectification(E)

• Marevainjunction(E)

• Liquidateddamages–genuineattempt toquantifypotential loss (DunlopvNewGarage ) ifa‘penalty’,courtswillnotallowit(InterfotovStiletto,FordvArmstrong)



Remedies – Sundry Points

• Equitableremediesarediscretionary

• Cannotbeclaimedasofright

• Willneveractinpersonamagainstthebreacher(WarnerBrosvNelson)

• Delaydefeatsequity(DoctrineofLaches)

• Willnotbeawardedifthecontracthasbeenaffirmed

• Rescissionwillnotbeawarded if it isnotpossible to restore theparties to theiroriginalpre-contractualposition

• Equitableremedieswillnotbeawardediftheinjuredpartyhasnotactedfairly(cleanhands)

• Equitableremedieswillnotbeawardedifsomeinnocentthirdpartywouldbeadverselyaffected

• LimitationAct–6years(specialtycontracts–12years)

• ….6yearsfromthedatethebreachcouldhavebeendiscovered(LynnvBamber)


Common Law Chapter 5 36

Chapter 6

Law of TorT

Types of Tort

• Trespassagainsttheperson

• Battery –intentionalbringingamaterialobjectintocontactwithanotherperson

–doesnotnecessarilyinvolveviolence(NashvSheen)

• Assault –intentionalbringinganotherpersonintoreasonablefearofbattery

• Falseimprisonment–deprivingapersonoftheirliberty

• Trespass(land)–entering,remainingorplacingobjectsonanotherperson’sland

• Nuisance–causingdistresstoanotherby,egnoiseorsmell

• Defamation–libel–ridiculeofanotherinpermanentform(crime)

• Defamation–slander–ridiculeofanotherinoral(notpermanent)form(civilwrong)

• Deceit–deliberatelymisleadinganotherintoadetrimentalposition

• Passing-off–useofasimilarnameinasimilarbusinesssuchthatconfusionresultsinthemindsofthepublic

• Negligence-carelessnessorrecklessness.Moreofthislater



Negligence Generally

• 3thingstoestablish

• Dutyofcareexists

• Breachofthatduty

• Consequentialloss,damageorinjurytoanotherparty

• Wealloweadutyofcaretoourlegalneighbours

• Thosepeoplesodirectlyaffectedbyouractsthatweshouldhavetheminmindaslikelytobeaffectedwhenwecommitthoseacts(DonohuevStevenson)

• Nowdevelopedintoa3stagetest

• Reasonableforeseeability

• Proximity(legalneighbour)

• Fair,justandreasonabletoimposeadutyofcare


Law of TorT Chapter 6 38

Negligence Generally continued

• 2ndthingtoestablishisbreachoftheduty

• Agreaterdegreeofcareisneededifriskofinjuryishigh

• GlasgowvTaylor

• Takeintoaccounttheseriousnessoftherisk(ParisvStepney)

• Takeintoaccountthepracticalityandcostofriskavoidance(LatimervAEC)

• Takeintoaccountstandardpractice

• Takeintoaccountthesocialbenefitegaccidentcausedbyemergencyambulance

• Professions(e.gthemedicalprofession)establishtheirownlevelsofcare

• Resipsaloquitar–RichleyvFould

• MahonvOsborne


Law of TorT Chapter 6

Negligence Generally continued

• 3rdthingtoestablishiscausalityandpossibilityof‘breakingthechain’

• The‘butfor’test(BarnettvChelseaandKensingtonHospital)(WilshervEssex)

• Multi-causes(FairchildvGlenhaven)

• Novusactusinterveniens

• Actsoftheinjuredpartywereunreasonable(McKewvHolland)

• Actsofathirdpartyincreasedthedamage(LambvCamden)

• ActofGod(CarslogievNorway)

• Remotenessofforeseeability(TheWagonMound)(JolleyvSutton)

• Defences

• Contributorynegligence(SayersvHarlow)

• Volentinonfitinjuria(ICIvShatwell)


Law of TorT Chapter 6 40

Negligence – Accountants

• UltramaresvTouche

• HedleyByrnevHeller

• JEBFastenersvMarksBloom

• CaparovDickman

• ADTvBDO

• NRGvEY

• BaringsvCoopers

• BCCIvEY

• Incorporate

• Limitedliabilitypartnership


Law of TorT Chapter 6

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Chapter 7

EmploymEnt law

Employment Law

• Necessarytodistinguishbetweenacontractofserviceandacontractforservices

• Courtsapply3tests

• Controltest(MerseyDocksvCoggins)

• Integrationtest(CassidyvMinistryofHealth)

• Economicrealitytest(ReadymixConcrete)

• Differenceisimportantbecause:-

• Taxandsocialsecuritycontributions

• Salestax

• Employmentprotectionprovisions

• Vicariousliability

• Liquidation

43June 2011 Examinations paper F4

Employment Law

• Indicatorsthataworkerisself-employed

• Owntoolsandequipment

• Abilitytodelegate

• Abilitytochoosewhichhourstowork

• Abilitytoacceptorrefusework

• Abilitytotakeholidayswithoutrestrictions

• Paidfortheproject

• Workfordifferentorganisations

• Butnoindividualindicatorisnormallysufficient

• Courtswillconsiderallthecircumstances

• Anditdoesn’tmatterwhatthe‘employer’/’worker’haveagreedbetweenthem–it’stheeconomicrealitywhichisimportant

June 2011 Examinations paper F4

EmploymEnt law Chapter 7 44

Dismissal

• 4types

• Summary–seriousbreachofcontractbyemployee

• Constructive

• Reductioninpayrate

• Changeinthenatureofthejob

• Failuretofollowproperdisciplinaryprocedures

• Failuretoprovideappropriateworkingenvironment

• Failuretoprovidesuitablework

• Wrongful

• Unfair


EmploymEnt law Chapter 7

Wrongful Dismissal

• Notwrongifjustified.Ifwrong,remedyisdamages–lostearnings

• Justifiedif:-

• Disobedience

• Dishonesty

• Incompetence/negligence

• Immorality

• Drunkenness

• Misconduct

- Acceptingmoney

- Assault

- Disclosureofinformation

Unfair Dismissal

• Automaticallyunfair

• Completedprisonsentence

• Dismissedontransferofownership

• Exercisingrightsrelengthofworkingday

• Insistenceonminimumwage

• RefusingtoworkonSundays

• Takingstepstoensurehealthandsafety

• Tradeunionmembershiporactivities

• Whistleblowing



Unfair Dismissal

• Notalldismissalsareunfair–somearefair

• Automaticallyfair

• Unofficialstrikeaction

• Actionsthreateningnationalsecurity

• Potentiallyfair

• Incapable

• Notcompetenttodotheworkforwhichemployeeisqualified

• Redundancy,seelater

• Legalreasonseglosingdriver’slicencewhenemployedasachauffeur

• Losingqualifications–egbecomingdisqualifiedasadoctor


EmploymEnt law Chapter 7 48

Redundancy

• Aformofdismissalfromemploymentcausedbytheemployerneedingtoreducetheworkforce

• Reasonsinclude:-

• newtechnologyoranewsystemmakesyourjobunnecessary

• thejobnolongerexists

• theneedtoreducethelabourcostsmeansstaffnumbersmustbereduced

• thebusinessisclosingdownorre-locating

• if20orfeweraretobemaderedundant,thisrequiresindividualconsultation

• thisinvolvesdirectconsultationand...

• ...lookingatanyalternativetoredundancy

• ifnoconsultationtakesplace,anyredundancymaybeunfairdismissal

• ifmorethan20aretobemaderedundant,thisisknownascollectiveredundancy

• colecctiveredundancyrequirestheemployertoconsultwithemployees’representative

• ifnoconsultationtakesplace,aclaimtoanEmploymentTribunalcouldresultincompensationofupto90days’pay

• Selectionofredundantworkersshouldbefairandobjective

• Ifnotfairandobjective,dismissalwillbeautomaticallyunfair





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Chapter 8

AgenCy LAw

Formation and Authority

• Formationmaybe:-

• Express(orallyorinwriting)

• Implied

• Bysubsequentratification

• Byestoppel(Freeman&LockyervBuckhurstParkProperties)

• Bynecessity(GNRvSwaffield)

• Authoritymaybe:-

• Express

• Implied(WatteauvFenwick)(Hely–HutchinsonvBrayhead)

• Apparent/ostensible(Freeman&Lockyer)


Termination and Liability

• Terminationofagencyagreementmaybebyagreementorbyoperationoflaw:-

• Principaloragentdies

• Principaloragentbecomesinsane

• Principal(orsometimesagent)becomesbankrupt

• Liability

• Solongasactingwithinauthority,agenthasnoliabilityundercontract,norcanheenforceacontract

• But,sometimes,agentmaybeheldpersonallyliable

- Whereagententersacontractwithoutdisclosinghispositionasanagent

- Whereagentisactingonhisownbehalf,eventhoughclaimingtoactonbehalfoftheprincipal

- Whereusualtradecustomhasestablishedliabilityoftheagent


AgEncy LAw chapter 8 52

Chapter 9

PartnershiP

Partnership Law

• A partnership is defined as“the relationship which subsists between two or more people carrying onbusinessincommonwithaviewtoprofit”

• Muchofpresent-daypartnershiplawiscontainedinthePartnershipAct1890

• Partnersmayagreeamongstthemselveshowtheirfirmistooperate,solongastheirarrangementislegal(EvertvWilliams)

• Thebusinessmustbebeing“carriedon“.Itshouldbemorethanaone-offtransaction,andmustbecontinuing

• Itmustbe“withaviewtoprofit”andismorethanthesimplesharingofgrossrevenues

• Ifabusiness relationshipsatisfiesthedefinition, thecourtsmaywelldeterminethatapartnershipexists,regardlessofanywrittendocumentation(orintentionoftheparties)tothecontrary

• Asageneralrule,partnersinafirmarejointlyandseverallyliableforpartnershipdebts

• Everypartnerisanagentofthefirmandtheotherpartnersforthepurposeofthebusinessofthefirm

• Theactsofeverypartnerdoneinthecourseofthefirm’sbusinessbindthefirmandthepartnersunlessthepartnerwasexceedinghisauthorityand……

• ...theotherpartyknewthatfact,orwasnotawarethatthepersonwasapartner



The Agreement

• Partnershipsareformedbyagreement,andtheinternalarrangementsareamatterforagreementamongstthepartners

• Typicalmatterstobeagreeduponinclude:-

• A

• D

• D

• C

• I

• S

• C

• G

• T


PartnErshiP Chapter 9 54

1890 ActIntheeventthatpartnersfailtomakeanarrangementaboutsomematterwhichislaterdisputed,thenthe1890Actestablisheswhatshouldhappen.Themainprovisionsare:-

• M

• E

• D

• I

• C

• S

• I

• N

• B

• E

• D


PartnErshiP Chapter 9

Dissolution Grounds – Automatic and By Court Order

• D

• I

• S

• S

• O

• L

• U

• T

• I

• O

• N

• S

LPA 1907 and LLPA 2000

• LimitedPartnershipsAct1907mainfeaturesare:-

• Atleastonegeneralpartner(withunlimitedliability)andonelimitedpartner(withlimitedliability)

• Mustberegisteredwiththeregistrarofcompanies

• Limitedpartnershouldtakenopartinthemanagementofthefirm

• Ifthefirmbecomesbankrupt,onlythegeneralpartnersareliableforthefirm’sdebts

• LimitedLiabilityPartnershipsAct2000mainfeaturesare:-

• Combinationoftheadvantagesofapartnershipwiththoseofalimitedcompany

• Mustberegisteredwiththeregistrarofcompanies

• Mustfilefinancialstatementsandbeaudited

• Asaseparatelegalentity,thepartnersarenotliableforthefirm’sdebts,therebyprotectingthemselvesfrompersonaldisasters.However,theprovisionsrelatingtowrongfulandfraudulenttradingapply.


PartnErshiP Chapter 9

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Chapter 10

Company Law

Types of Corporation and Ways of Formation

• Corporationsole–apublicofficeoccupiedbyanaturalperson.Deathofthepersondoesnotaffectthecontinuingsurvivalofthecorporation.TheMayorofLondonisacorporationsole.

• Corporationaggregate–acollectionoflike-mindedpeoplewhocombinetoformanartificialperson–thecorporationaggregate.Deathofindividualmembershasnoeffectontheexistenceofthecorporation.

• Formationmaybebyanyof3ways

• RoyalCharter –egEastIndiaTeaCompany,manyUKuniversities

–Veryrareinmoderntimes

• Statute –equally(ifnotmore)rare

–EgBritishWaterways

• Registration –byfarthemostcommonmethod

–EgTescoplc,Small&CoLtd.

• Since2004anewformofcompany,theCommunityInterestCompany(CIC)isavailablefororganisationscreatedforthebenefitofthecommunity/societyratherthanforthepursuitofprofit



Types of Company

• Publicquoted

• Sharepricequotedonarecognisedstockexchange

• Mustbelimitedbyshares

• Publicunquoted

• Againlimitedbyshares,butnotquoted

• Private–unlimited

• Private–limitedbyshares

• Private–limitedbyguarantee,andhavingasharecapital

• Private–limitedbyguaranteebutwithnosharecapital

• Communityinterestcompanies


Company Law Chapter 10 60

Public Companies

• Acompanyisapubliccompanyifitsatisfiesthedefinition

• Itisacompanywhichislimitedbyshares

• Hasatleast2members

• Theconstitutionstatesthatitispublic

• Thenameendswiththewords“publiclimitedcompany“or“plc”

• Ithasanallottedsharecapitalnotlessthan£50,000…

• …ofwhichnotlessthan25%iscreditedaspaidup…..

• ….togetherwiththewholeofthesharepremium

• Anycompanywhichdoesnotsatisfythedefinitionisaprivatecompany

• Althoughapubliccompanyexistsfromthedateonitscertificateofincorporation,itcannotcommencetotradeuntilitacquiresatradingcertificate


Company Law Chapter 10

Trading Certificates

• Publiccompaniescannotcommencetotradeuntilaftertheyhavereceivedatradingcertificate

• Thisisissuedbytheregistrarfollowinganapplicationmadebythecompany

• Theapplicationstates

• Thatthenominalvalueofallottedsharesisnotlessthan£50,000

• Thepreliminary/formationexpenses

• Andtowhomthesehavebeenpaid(orarestillpayable)

• Theapplicationmustbeaccompaniedbyastatementofcompliance

• Ifapubliccompanydoesinfactcommencetradingbeforethereceiptofthetradingcertificate,aninnocentthirdpartyisprotected

• Butthecompany,andanyofficerindefault,isliabletoafine

• Ifapubliccompany fails toobtaina tradingcertificatewithin12monthsof incorporation, thecourtonapplicationmaygrantaliquidationorderagainstthecompany



Advantages of Being a Company as Distinct From a Partnership

• Separatelegalpersonality(SalomonvSalomon)(AdamsvCapeIndustries)

• Limitedliability

• Perpetualexistence

• Raisingfinance

•

•

• Ownershipofproperty

• Numberofmembers

• Transferofinterest

• BUT there are disadvantages

• Legalimplications

• Expense

• Publicityanddisclosure



Disadvantages ( Expanded )

• Legalimplications

• Formation

• Audit

• Shareissues

• Meetingsandresolutions

• Liquidation

• “Properaccountingrecords“

• Expense

• Publicity

• Detailsofdirectorsandtheirremuneration

• Businessdetails



Lifting the Veil

• Thecourtwill lookbehindtheveilof incorporationwherejusticerequiresittopreventfraud, illegalityoroppression:-

• GilfordMotorCovHorne

• DaimlervContinentalTyreandRubber

• EbrahimivWestbourneGalleries

• RvOll

• ReFGFilms

• DHNvTowerHamlets

• Theveilwillalsobeliftedundertheprovisionsofstatute:-

• Fraudulenttrading

• Wrongfultrading

• Commencingtotradewithoutatradingcertificate

• Abuseofcompanyname

• Othersituations:-

• Preparationofgroupaccounts

• Taxlaw

• Personalguarantees



Formation

• Formedbypromoters(seenext)

• Preincorporationcontracts(KelnervBaxter)

• Documentstobefiled:-

• Applicationforregistration

• Memorandum

• Articles

• Statementofcompliance

• Statementofcapitalandinitialshareholders

• Registrationfee

• Certifiedtranslation



Formation - role and duties of promoters

• Roles

• act,underinstruction,toformacompany

• thisinvolves:

- finding people who will sign the memorandum and articles of association, and act as thecompany’sfirstdirectors

- selectasuitablenameforthecompany

- determinetheformandamountofthecompany’ssharecapital

- determinetherightstobeattachedtothedifferentclassesofsharecapital

- preparetheconstitutionofthecompany

- submitallthenecessaryformstotheregistrarofcompanies

- payallthepreliminaryandformationexpensesofthecompany

• Duties

• actwithreasonableskillandcare

• discloseanyprofitorpotentialconflictofinterest

- eithertothefirstindependentboardofdirectors

- ortothecompany’sexistingorintendedshareholders

• breach of duty - ie non-disclosure - allows the company to rescind the contract and recover thepurchaseprice(ErlangervNewSombreroPhosphateMiningCo)

• the company may require the promoter to pay over to the company any undisclosed profits(GlucksteinvBarnes)(WhaleyBridgevGreen)

• thecompanymaysuethepromoterandclaimdamagesforbreachoffiduciaryduty(LeedsvHarley)



Formation ( continued )

• Theapplicationforregistrationdetails:-

• Proposedname

• Registeredoffice(EnglandandWales)

• Proposedpostaladdressofregisteredoffice

• Limitationofmembersliability(sharesorguarantee)

• Publicorprivate

• Certificateofincorporation

• Ifeverythingisinorder,registrarwillissueacertificateofincorporation

• Thedateonthecertificateisconclusiveproof

• JubileeCottonMillsvLewes



Memorandum and the Constitution

• Historicallyamajordocument

• Since2006,nowjustamatterofrecord

• Statesthatthesubscribers

• Wishtoformacompany

• Agreetobecomemembers

• Agreetotakeatleastoneshareeach

• Company’sconstitutioncomprises

• Articles

• Resolutions(affectingthearticles)

• Agreements(affectingthearticles)



Articles – Contractual Force

• Whenapersonbecomesamemberofacompany,itisasthoughtheyhaveseparatelyenteredacontractwiththecompanyandwithalltheothermembersindividually

• Thetermsofthatcontractarecontainedwithinthearticles

• Theeffectistobindthememberstothecompany

• HickmanvKentorRomneyMarshSheepbreedersAssociation

• …..andthecompanytothemembers

• PendervLushington

• ….andthememberstothemembers

• ClarkevDunraven

• Butthearticlesdonotcreateacontractbetweenthecompanyandthirdparties

• EleyvPositiveGovernmentLifeAssuranceCo.



Articles – Alterability

• Basicrule–canonlyalterifforthebenefitofthecompanyasawhole

• Individualhypotheticalmemberofthefuture

• GreenhalghvArderneCinemas

• Nooutsidecontractshallpreventachange,butcompanymaybecomeliableforbreachofthatcontract(SouthernFoundriesvShirlaw)

• Evenifproposedalterationadverselyaffectsonlyonemember,itmaystillbevalid(AllenvGoldReefsofWestAfrica)

• Alterationsallowingcompulsorypurchaseofminority’sshareswillbe(normally)disallowed(DafenTinplatevLlanelliSteel)

• Allowingexpulsionofdefraudingdirector–OK(ShuttleworthvCoxBrothers)

• Allowingexpulsionofcompetingmembers–OK(SidebottomvKershawLeese)

• Possibletopreventalterationbyweightedvotingrights

• BushellvFaith



Articles – Procedure for Alteration

• Specialresolution

• 75%majority

• 14daysnotice

• copyofresolutiontoregistrarwithin15days

• copyofamendedarticlestoregistrar

• alterationisbindingonallmembers

• articlesmaysaythat,forameetingproposinganalteration,theaffectedmembermustbepresent

• soaffectedmembercanpreventalterationbynotattending

• articlesmayrequireagreatermajoritythan75%

• …butcanneverbedraftedtopreventamendment



Company Names

• Basicrule–companycanhaveanynameselectedbypromoters

• Buttherearerestrictions

• Registrarmayrefusetoregisteracompanywithanamewhichismisleadingoroffensive

• Connectionwithroyalty,banks…..

• Namemayberestrictedbystatute

• ANZAC

• Namewillnotbeallowedifthesameasanexistingcompany

• Namemaybedisallowedasatort(passing-off)

• EwingvButtercupMargarine

• Theword‘limited’(orplc)shallnotappearanywhereexceptattheendofthename



Name Change

• Compulsoryorvoluntary

• Mayberequiredtochangebyorderfromtheregistrar

• ….within12monthsifthecompanyhasbeen,bymistake,registeredwithanametoosimilartoanexistingcompany

• ….within5yearsifmisleadinginformationwassupplied

• Atanytimeiftheuseofthenameislikelytocauseharmtothepublic


• 75%majority

• 14daysnotice

• Copyofresolutionandamendedconstitutiontoregistrarwithin15days

• Registrarissuesnewcertificateofincorporation



Objects

• Companycandoanythingsolongasitislegal

• Sosince2006,onlyreasontomentionobjectsinthearticlesisrestrictively

• Ifcompanytriestoignoretherestriction,ultravires

• Membercanobject(AshburyRailwayvRiche)

• “Thevalidityofatransactionshallnotbecalledintoquestiononthegroundsoflackofcapacity”

• “In favourofa thirdpartyacting ingoodfaith, thepowerof thedirectors tobindthecompanyshallbedeemedtobefreeofanylimitationunderthecompany’sconstitution”

• Theseapplyonlytothirdparties,nottomembers

• Goodfaith–butthisispresumedunlessshownotherwise

• Norequirementforthirdpartytomakeenquiries

• Sothirdpartiesareprotected,butcompanycannotsuetoenforceanultravirestransaction



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Chapter 11

Company Law: DireCtors anD offiCers

General Points

• Adirectorisanyonewhooccupiesthepositionof...

• Ashadowdirectorisapersoninaccordancewithwhoseinstructionsthedirectorsareaccustomedtoact

• Defactodirector–apersonwhopurportstoactasthoughtheywereadirector

• Alternatedirector–apersonappointedbyadirectorwhoisunabletoattendaboardmeeting

• Executivedirectors–moreonthesenext

• Non–executivedirectors

• Integralelementofcorporategovernance

• Bringanindependentview

• Helpinprovidingeffectiveleadership

• Helptoestablishandmaintainfinancialprobity

• Keepawatchfuleyeontheeffectivenessoftheexecutivedirectors

77June 2011 Examinations paper f4


Number and Eligibility

• Privatecompany–atleastone

• Publiccompany–atleasttwo

• Anyonemaybeadirector(butsomerestrictions)

• Mustbeover16

• Maybeanon-naturalperson

• MustnotbedisqualifiedunderCDDA(seelater)

• Mustnotbebankrupt

• Mustnotbeofunsoundmind

• Shouldnotbeabsent,withoutpermission,fromboardmeetingsforaperiodinexcessof6months

June 2011 Examinations paper f4

Company Law: DirECtors anD offiCErs Chapter 11 78

Company Directors Disqualification Act

• OnapplicationtotheCourt,adirectormaybedisqualifiedbycourtorderonanumberofgrounds:

• for an offence committed in the promotion, formation,management, liquidation or striking off acompany

• wherepersistentlyindefault(3offencesin5years)offilingreturns

• whenfoundguiltyoffraudulentorwrongfultrading

• wheninvolvedinacompanyinsolventliquidation

• followingaDepartmentofTradeinvestigation

• ingeneral,thedisqualificationperiodis“upto15years”

• breakingthedisqualificationorder upto2yearsinprison


Company Law: DirECtors anD offiCErs Chapter 11

Directors Appointment

• Firstdirectors–namedindocumentssenttoregistrarbeforeincorporation

• Subsequentdirectorsmaybeappointedby:-

• Membersingeneralmeeting

• Otherdirectors–tofillacasualvacancy

• Thecourt(rare)

• Alender(ifpartoftheloanagreement)

• Administrator–underanadministrationorder

• 1/3rotationprocedure

• FTSEtop350company?Alldirectorsretireeveryyear

• Appointedbyordinaryresolution

• Registrarnotified



Directors Removal

• Ordinaryresolution

• Specialnotice

• 28daysnoticetocompany

• 21daysnoticetomembers

• Opportunitytomakewrittenrepresentationsofreasonablelengthandnotdefamatoryinnature

• Reasonablelength

• Mustalsosatisfylegalrestrictions–100membersholding≥£100sharecapitalonaverage

• Noticetoregistrar

• Weightedvotingrightscanmakeremovalimpossible

• BushellvFaith

• Companymayhavetopaysubstantialcompensationtoaremoveddirector(SouthernFoundriesvShirlaw)



Directors - Statutory Duties

• 2006Actputintostatutemanyoftheestablishedcommonlawprinciples

• 7duties

• Actwithintheirpowers

• Performtheirdutieswithreasonableskill,careanddiligence

• Promotesuccessofcompany(seenext)

• Independentjudgement

• Avoidconflictsofinterest

• Nobenefitsfromthirdparties

• Declareinterestintransactions/contracts

• Commonlawcaseswhichthecourtswillfollowininterpretingthesestatutorydutiesfollow



Directors’ Duties – Common Law Cases

• ReCityEquitableFireInsurance

• ReBrazilianRubberPlantationsandEstates

• DorchesterFinanceCovStebbing

• CookvDeeks

• IDCvCooley

• Regal(Hastings)vGulliver

• PesoSilverMinesvCropper

• HowardSmithvAmpolPetroleum

• BamfordvBamford

• HoggvCramphorn

• ClemensvClemens



Directors – Promoting Success

• Statutetryingtoencouragelong-termapproachbydirectors

• Directorstohaveregardforallstake-holders

• Non-exhaustivelistofmattersfordirectorstoconsider:

• Long-termconsequencesoftheirdecisions

• Employees’interests

• Goodrelationshipswithcustomersandsuppliers

• Localcommunityandenvironmentalimpact

• Highstandardsofbusinessconduct

• Goodreputation

• Fairtreatmentforallmembers



Directors – Controls

• Servicecontracts≥2yearsrequireapprovalbymembers

• Acquisitionofnon-cashassetsneedmembers’approvalif≥10%ofcompany’sassets

• ….butnotlessthan£5,000

• …andalwaysif>£100,000

• Nocompanymaylendmoney,providesecuritynorguaranteealoantoadirectorofitself,norofitsholdingcompanyunlessapprovedbymembers

• Relevantcompaniescannotquasi-lend(unless<£5,000)

• ...relevantcompaniescannotapprovecredittransactions(unless<£10,000)unlessapprovedbymembers

• Anycompanymaylendupto£5,000

• Loansbymoneylendingcompaniesallowedforpurchaseorimprovementofmainoronlyresidenceupto£100,000

• Relevantcompanyrestrictionsapplyalsotoconnectedpersons



Directors – Remedies

• Makethemaccountforpersonalgain(Regal(Hastings)vGulliver)

• Makethemindemnifythecompanyagainstlosscausedbytheirnegligence(seebelow)

• Rescindthecontractwheredirectorhasaconflictofinterest

• Askthecourttodeclareatransactionisultravires

• Directorsarenotliablefortheactsofotherdirectors

• Maybeheldliablebythecourtlookingbehindtheveilofincorporation

• Maybeheldliablebythecourtforfraudulentorwrongfultrading

• Liablefornegligence?

• Notifhonest(PavlidesvJensen)

• Butifnegligenceresultsinpersonalbenefit?(DanielsvDaniels)



Company Secretary

• Everypubliccompanymusthaveone

• Shouldbeappropriatelyqualified

• Duties, determined by the directors, are administrative in nature ( Panorama Developments v FidelisFurnishingFabrics)

• Maintainingcompany’sstatutoryrecords(seelater)

• Filingreturnswiththeregistrar

• Takingminutesofmeetings

• Ensuringthecompanycomplieswithstatutoryrequirements

• Signingdocumentsasrequiredbylaw

• Underprinciplesofcorporategovernanceshouldalso:-

• Advisetheboardongovernancematters

• Arrangetheinductionprocessfornewneds

• Enableeffectivecommunicationbetweenboardanditsvarioussub-committees



Company Secretary: Statutory books

• everycompanymustmaintaincertainrecordsrequiredbystatute–“thestatutorybooks”

• theserecordsmustbekeptatthecompany’sregisteredoffice,unless...

• ...theregisterofmembersismaintainedbyanindependentorganisation–thecompany’sregistrars

• inthissituation,certainotherbooksmaybekeptalsoattheofficesofthecompany’sregistrars

• registersinclude:

• members

• directors

• secretary

• mortgagesandcharges

• debentureholders

• directors’interests

• substantialshareholders



Auditors

• Required(unless‘small’)

• Appointedby:-

• Directors(firstandcasualvacancies)

• Members(subsequentandcasualvacancies)

• Secretaryofstate(ifno-oneelsedoes)

• Mustbeappropriatelyqualified

• Cannotbe:-

• Directororemployeeofthecompany

• Partneroremployeeoftheabove

• Undischargedbankrupt

• Professionallypreventedfrom

• Owningbeneficialinterest

• Beingcloserelativeofcompanyofficersoremployees



Auditors – Rights and Duties

• Rights

• Accesstocompanyrecords

• Informationandexplanations

• Noticeofandattendanceatcompanygeneralmeetings

• Writtenrepresentations(whenproposedforremoval)

• Receivecopiesofproposedwrittenresolutions

• Duties

• Expressanopinionontruthandfairness(andproperpreparation)

• Reportifdirectors’reportisinconsistentormisleading

• (Forquotedcompanies)reportoncertainelementsofthedirectors’remunerationreport

• Auditorsshouldsignanddatetheauditreport

• Report,byexception,ifproperaccountingrecordsnotkept



Chapter 12

Company Law: meetings and ResoLutions

Annual General Meeting

• PubliccompaniesmustholdanAGM

• …everycalendaryear(GibsonvBarton)

• Firstnomorethan18monthsafterincorporation

• Subsequent,nomorethan15monthsafterprevious

• PrivatecompanymemberscanrequestanAGM

• 21daysnotice

• Ordinarybusiness:-

• Formalpresentationofthefinancialstatements

• Reappointmentofdirectors

• Reappointmentofauditors

• Approvalofdividendproposedbydirectors



Resolutions

• Ordinary

• simplemajority

• ordinarybusinessand(some)specialbusiness

• 14daysnotice

• Special

• 75%

• 14daysnotice

• Written

• privatecompaniesonly

• anyresolution(ordinaryorspecial)

• …exceptforremovalofauditorordirector

• auditorneedstoapprovethewording

• resolutionpassedonthedaterequiredmajorityisreached


Company Law: mEEtings and REsoLutions Chapter 12 92

Resolutions – Special Notice

• Specialnoticeappliesonlytosomeordinaryresolutions

• 28daysnoticeisgiventothecompany

• Thecompanygives21daysnoticetothemembers

• Resolutionsrequiringspecialnotice:-

• toremoveadirector

• toremoveanauditor

• toappointanewauditorotherthantheretiringauditor

• tofillacasualvacancyintheofficeofauditor

• toconfirminappointmentanauditorappointedbythedirectorsinthemid-termtofillacasualvacancy

• overagedirectorforaplc

• Director/auditormaywritewrittenrepresentationsofreasonablelengthandnotdefamatoryinnature


Company Law: mEEtings and REsoLutions Chapter 12

Resolutions

• Normallythedirectorswilldeterminetheagendaforameeting

• Butsometimesmembersmayrequirearesolution

• Membersmustholdatleast5%ofthetotalvotingrights,or...

• ...notlessthan5%innumberofthemembers,or...

• …benotlessthan100membersholdingonaveragenotlessthan£100eachinpaidupsharecapital

• Therequestshouldbeinhardcopyform,orelectronicform

• Therequestmustbedeliverednotlessthan6weeksbeforethegeneralmeeting

• Therequisitionistsmayrequestthatastatementofreasonablelengthbecirculatedtogetherwiththenoticeofthemeeting

• Reasonablelengthis,asusual,notmorethan1,000words

• Therequisitionistswillbeartheincidentalcostsunless….

• ….thecompanyresolvesotherwise



Proxies

• Aproxyis‘awrittenstatementauthorisinganotherpersontovoteonbehalfofanabsentshareholder’

• Thepersonappointedneednotbeamemberofthecompany–itcanbeanyone

• Theword‘proxy’isusedtodescribeboththeformandthepersonappointedbytheform

• Proxiesmayspeakatthemeeting

• Theymayvoteonapollandonashowofhands

• Theymaydemandapoll

• Companieswillprovide‘two-way’proxyformssothattheabsentmembercanindicatewhichwaytheproxyshouldvote–‘for’or‘against’eachresolution

• Proxyformsshouldbedeliveredtothecompanynotlessthan48hoursbeforethemeeting

• Aproxyappointedbyamemberwhichisacompanyiscalleda‘representative’

• Apersonmaybeappointedbymorethanonememberastheirproxy



Quorum

• Aquorumistheminimumnumberofmemberswhoshallbepresentatameetingbeforethemeetingmayvalidlypassresolutions

• Theminimumnumberisnormallycontainedwithintheconstitution

• Typically,theminimumnumberis2memberspresent,inpersonorbyproxy

• Buttheword‘meeting’impliesthatthereshouldbeatleast2persons

• Soonememberinpersonwhoalsoholdsaproxyforanothermembercannot,normally,beaquorum

• Itis,however,possible!

• Inthesituationofaclassmeeting,whereallthesharesofthatclassareownedbyasingleperson

• Ifthecompanyisaprivatecompanywithonlyonemember

• Ifthecourtdirectsthataquorumshallbeasingleperson

• Ifameetingisinquorateatthescheduledstarttimeitwillnormallybeadjournedto‘sametime,sameplace,nextweek’



Voting

• Followingdiscussionaboutaresolution,thechairwillcallforavote

• Initially,thiswillbeby‘showofhands’

• Eachmember,nomatterhowmanysharestheyhold,thereforehasonlyonevote

• Butmembersholdingmanysharesmayask,followingashowofhands,foravotecount–apoll

• Pollsmaybedemandedby

• Notlessthan5members

• Membersholdingnotlessthan10%ofthetotalvotingrights

• Membersholdingnotlessthan10%ofpaid-upcapital

• Thechair

• Votesarecounted,whetherbyshowofhandsorbypoll

• Abstentionsarenotcounted,neither‘for’nor‘against’

• Thechair’sdecisionabouttheresultofthevoteisfinal



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Chapter 13

Company Law: Loan CapitaL

Loan Capital

• Adebentureis‘thewrittenacknowledgementofadebtbyacompany’

• Maybesecuredorunsecured

• Maybeasingledebentureoraseriesofdebentures

• Ifissuedasaseries,debentureholdersrank‘paripassuinterse‘

• Security/thechargemaybefixedorfloating

• Tobevalid,thechargemustberegisteredwithin21daysofitscreation

• Ifthereare2chargesoverthesameproperty,afixedchargewilltakeprecedenceoverafloatingcharge

• Ifthereare2fixedcharges(or2floatingcharges)overthesameproperty,theearlieronewilltakeprecedence

• Theearlieroneistheonewhichisregisteredfirst!

• Debentureholdersarecreditorsofthecompany,notmembers



Fixed Charges

• Attachestospecificassets

• Companyisnotfreetodeal/disposeofthosechargedassets

• Fixedchargecreatedwithinthe6monthsimmediatelypriortoacompanycommencingliquidationmaybeinvalid

• Aliquidatorwilltrytoproveinvalidity

• Areceivermayprovevalidityif

• Thechargewasgrantedinexchangefornew‘money’or

• Thecompanywassolventatthedateofcreationofthecharge

• Intheeventofaliquidation,thefixedchargedebentureholderranksnumberoneinthesequenceofassetdistribution

• Whereafloatingchargeexistsoveranasset,theremaybeanegativepledgeclause

• Theeffect is toensurethatafloatingchargedebentureholderhas tobenotifiedofanyproposedfixedchargeoverthesameasset


Company Law: Loan CapitaL Chapter 13 100

Floating Charges

• Unlikefixedcharges,floatingchargesdonotattachtospecificassets

• DefinedinthecasereYorkshireWoolcombersas:-

• Achargeonaclassofassetsofacompany,presentandfuture

• Wheretheclasschangesfromtimetotimeintheordinarycourseofbusiness

• Andthecompanymaydealwiththeseassetsuntilthechargecrystallises

• Typicallyappliestothecurrentassetsofinventoryandaccountsreceivable

• Whetherachargeisfixedorfloatingisamatterofcommercialrealityratherthanhowithasbeennamed

• InreTunbridgea‘fixed’chargewasheldbythecourttobefloatingbecauseallthreeYorkshirecriteriaweremet

• InreCimexa‘floating’chargewasheldtobefixedbecausetheassetsdidnotchangefromtimetotimeintheordinarycourseofbusiness

• Afloatingchargewillbeinvalidifcreatedwithinthe12monthsimmediatelypriortothecommencementofaliquidation


Company Law: Loan CapitaL Chapter 13

Debentures Compared with Shares

• Fixedrateofinterest

• Payableeventhoughnoprofits

• Novotes

• Security(notalways)

• Preferentialentitlementtoreturnofmoney

• Possessionofthechargedasset

• Rightswhencompanydefaults

• Applytocourtforliquidationorder

• Applytocourtforadministrationorder

• Appointareceiver(providednoadministrationorderisineffect)


Company Law: Loan CapitaL Chapter 13 102

Chapter 14

Company Law: Liquidations

Liquidation

• Compulsoryorvoluntary

• Voluntarymaybemembers’orcreditors’

• Essentialdifferenceissolvency

• Courtmayorderliquidationif:-


• Numberofmembersfallsbelow2(plcsonly)

• Failuretoobtainatradingcertificatewithin12monthsofincorporation(plcsonly)

• Suspensionofbusinessfor12months(orfailuretocommencebusinesswithin12months)

• Unabletopayitsdebtsastheyfalldue

• Justandequitable


Compulsory Liquidation

• Unabletopayitsdebtsastheyfalldue

• Needtoshowthecourtthatthecompanyhasowedthepetitioningcreditormorethan£750formorethan21days

• Thedebtshouldnotbeindispute

• Justandequitable

• Failureofsubstratum

- ReGermanDateCoffeeCo.

• Deadlockontheboard

- ReYenidjiTobacco

• Quasi-partnershipsituation

- EbrahimivWestbourneGalleries

• Butjustandequitableonlygivenintheabsenceofalternativeremedy(reACompany)


Company Law: Liquidations Chapter 14 104

Administrator Appointed by the Court

• Applicationtothecourtby:-

• Membersordinaryresolution,directorsorbycreditors

• Courtmaygrantif:-

• Companyisunabletopayitsdebts

• Theorder,ifgranted,islikelytoachievethedesiredresult

• Effectofanorder

• Moratoriumoncompany’sdebts

• Powersofmanagementpassedtoadministrator

• Petitionsforwinding-uparedismissed

• Anyadministrativereceiveralreadyinofficemuststepaside


Company Law: Liquidations Chapter 14

Duties of an Administrator

• Agentofthecompanyandthecreditors

• Sohasfiduciarydutiesaswellaslegal

• Mustsendnoticeofappointmenttocreditors

• Mustobtainalistofcreditors

• Mustsendnoticeofappointmenttoregistrarwithin7days

• Mustrequireastatementofaffairs

• Mustidentifyappointmentonallcompanybusinessletters/correspondence

• Mustprepareproposalsforachievementofadministrationobjectives

• Mustmanagetheaffairsofthecompany



Advantages of Administration Compared with Liquidation

• Companymaycontinueaftertheprocessiscompleted

• Companyisshelteredfromcreditorsallowingtimetodesignacceptableproposals

• Creditorsarethereforepreventedfromapplyingforaliquidation

• Administratorcanchallengeprevioustransactions

• Creditorsmorelikelytogetsomemoneyback

• Memberswillholdsharesinaviablecompany(possibly)

• Anycreditorcanapplytothecourt

• Floatingchargedebentureholderscanappointwithoutreferencetothecourt

• Creditors(potentially)willhaveacontinuingcustomer

• Directorscouldavoidacquiringthereputationofhavingbeeninvolvedinaninsolventcompany


Company Law: Liquidations Chapter 14

End of Administration Period

• Automaticallyends:-

• Whensuccessfullycompleted

• 12monthsafterappointment

• Applicationtocourtbyadministrator

• Applicationtocourtbyacreditor

• Whenoriginalapplicantisdiscoveredtohavehadaninappropriatemotive

• Administratorcanapplytocourt

• Ondeterminingthatadministrationcannotbeeffective

• Thecompanyshouldneverhavebeeninadministration

• (ifappointedbythecourt)theadministrationhasbeensuccessful



Chapter 15

Company Law: Corporate GovernanCe

Corporate Governance

• Corporategovernanceisthesystembywhichcompaniesaredirectedandcontrolled

• Importantbecause (often ) companies are controlledbypeople (directors )whoarenot theowners (shareholders)

• Butthereareotherpeoplealsointerestedinthecontinuinghealthofacompany–thestakeholders

• Forexample:

• Employees–wishtocontinuetohavetheopportunityofearningasalary

• Taxman–wishestocontinuetoreceiveshareofprofits

• Customers–wishforcontinuityofsupplyofgoods

• Suppliers–wishfortheopportunitytocontinuetosupply

• Society–theultimateconsumers,butalsoaffectedbycompany’senvironmentalfootprint

• Planetearth–weareallaffected,directlyorindirectly,bytheactivitiesofeveryoneelse!



Corporate Governance – Auditors

• Theshareholdersofacompanyneedreassurance

• Thismaybereassuranceconcerningthereliabilityoffinancialinformationor…..

• …concerningthelegalityofacompany’sactivitiesor…..

• …..theappropriatenessoftheinternalcontrolsystemsbeingfollowedwithinthecompany

• Auditors have a statutory duty to report on the truth and fairness of the view shown by the financialstatements

• Thisisprimarilyforthebenefitoftheshareholders

• Butotherstakeholdersalsogainreassurance

• Thereforeimportantthatauditorstakeactivestepstoensuretheircontinuingindependence

• Protectthemselvesagainstanymatterwhichcouldthreatenthatindependenceor…

• ……..beperceivedbyotherstothreatenit


Company Law: CorporatE GovErnanCE Chapter 15 110

Corporate Governance – Directors

• Theownersofacompanywilltypicallynotalsobeincontrol

• Directorsareappointedasagentsofthecompanytoruntheentityinanorderlyandefficientmanner

• Maybeexecutivedirectors

• Involvedintheday-to-dayrunningactivities

• Ornon-executive

• Theirroleismoresupervisoryinnature

• Theybringanindependentviewtotheboardmeetings

• Theyhelptheboardtoprovideeffectiveleadership

• Theyassistinthedevelopmentofthegoodreputationofthecompany

• Theycomprisethemajorityorallofthegovernancesub-committeesoftheboard


Company Law: CorporatE GovErnanCE Chapter 15

Corporate Governance – Stakeholders

• Obviousstakeholdersaredirectors,employees,customersetc

• Butacademicresearchhasidentifiedanumberofdifferentwaysofcategorisingstakeholders:-

• Legitimate/illegitimate

• Internal/external

• Active/passive

• Recognised/unrecognised

• Known/unknown

• Primary/secondary

• Voluntary/involuntary

• Narrow/wide


Company Law: CorporatE GovErnanCE Chapter 15 112

Chapter 16

Company Law: ILLegaLItIes

Wrongful Trading

• PreviouslawextendedbyInsolvencyAct1986

• Previously,directorscouldonlybeliableforcompany’sdebtswheretheywereguiltyoffraudulenttrading–difficulttoprove

• I.A.1986designedtogivecreditorsincreasedprotection

• Anexampleofliftingtheveil

• Directors(andsometimesotherstoo)maybeheldliablewhen:-

• Companyhascommencedinsolventliquidation

• Theyknew,orshouldhaveknown,thatthiswasprobable

• Theyheldapositionofpower(director)

• Courtmayallocatefinancialpenaltyontheliquidator’sapplication

• Directorsmayescapeliabilityiftheycanshowthecourtthattheytookeverystepnecessarytomitigate/minimisethecreditors’potentialloss



Money Laundering

• Aprocesswherebytheproceedsofcriminalactivityareconvertedintoassetsappearingtohavealegitimateorigin

• Usuallyinvolves3distinctphases

• Placementofthefundsintolegitimatebusinessactivity

• Transferofmoneyfrombusinesstobusiness(orplacetoplace)toconcealitsoriginalsource

• Integration–themoneytakesontheappearanceofhavingcomefromalegitimatesource

• ProceedsofCrimeAct2002seekstocontrolmoneylaunderingbythecreationof3categoriesofcriminalactivity

• Laundering(maximum14yearsprisonand/orfine)

• Failuretoreport(maximum5yearsprisonand/orfine)

• Tipping-off(maximum5yearsprisonand/orfine)

• Theoffenceoffailuretoreportrelatesonlyto individualsactinginthecourseofbusiness–forexample,accountants


Company Law: ILLEgaLItIEs Chapter 16 114

Insider Dealing

• Insider–apersonwhohasabusinessconnectionwithacompanyasaresultofwhichtheymayacquirerelevantinformation

• Dealing–buyingorsellingsharesorsecuritiesinacompany

• Unpublishedprice– sensitive information is informationabout thecompanywhich isnot in thepublicdomain…..

• ….islessthan6monthsold,and……

• ….is,onpublication,likelytohaveamaterialimpactonthemarketpriceofthecompany’sshares

• Aninsiderinpossessionofunpublishedprice–sensitiveinformationshouldnotdeal

• Anoffenceisalsocommittediftheinsiderencouragesanotherpersontodeal

• A person dealing as a result of that encouragement, and believing the source to be an insider, is alsocommittinganoffence

• Disclosureofinsideinformation,otherthaninthepropercourseofemploymenttoanauthorisedperson,isalsoanoffence

• Somedefencesareavailabletobeclaimed


Company Law: ILLEgaLItIEs Chapter 16

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Chapter 17

Capital MaintenanCe

Capital Maintenance

• Thememberscontributecapitaltothecompany

• Thisshouldbemaintainedwithinthecompanybywayofnetassets

• Knownasthebufferfund

• Called“shareholders’equity“andcomprisessharecapitalplusundistributablereserves

• Undistributablereservesare:-

• Sharepremiumaccount

• Capitalredemptionreserve

• Accumulatedunrealisedprofitslessaccumulatedunrealisedlosses

• Anyotherreserveidentifiedbythecompany’sconstitutionasundistributable

• Developmentoftheprincipleofcapitalmaintenanceaddressesthreeareas:-

• Restrictionsonthepaymentofdividends

• Restrictionsonthereductionofcapital

• Assistancegiventooutsiderstoacquirethecompany’sshares



Capital Maintenance – Payment of Dividends

• Powertodeclaredividendsisgiventothedirectorsbythecompany’sconstitution

• Membersdonothaveanautomaticrighttoreceiveadividend(theyapproveoneatthecompany’sgeneralmeetingbutcannotvotetoincreasethedividendproposedbythedirectors)

• Dividendsarenormallypaidbasedonthepaid-upcapitalofthecompany

• Dividendsmaybeintheformofacashpayment(normal)orinanotherform(forexample,ascripdividend)

• Adividendisacompanydebtonlyfromthedateitisdeclaredanddueforpayment

• Ifitisdeclaredandunpaid,itisadeferreddebt

• Unclaimeddividendsbecomestatutebarredafter6years

• Dividendsmayonlybedeclaredoutofprofitsavailableforthepurpose

• Thisisdefinedas‘accumulatedrealisedprofitslessaccumulatedrealisedprofits’

• Thereisnodistinctiondrawnbetweencapitalprofitsandrevenueprofits


Capital MaintEnanCE Chapter 17 118

Capital Maintenance – Reduction of Capital

• Acompanymayreduceitscapital,butonlyunderthestrictestcontrol

• 3authoritiesarerequired


• Powerintheconstitution

• Consentofthecourt

• Andforonly3reasons/situations

• Thecompany’scapitalisnolongerrepresentedbyavailableassets(ithasbeensufferinglosses)

• Thecompanywishestoextinguish/canceltheliabilityofaclassofshare-forexamplea£1share,70ppaidcouldbecomea70psharefullypaid

• Thecompanywishestorestructureitscapitalfundingandmay,forinstance,nowwishtoreplacesomeofitssharesbywayofloancapital

• Thecourtisinvolvedbecausecreditors’rightscouldbeadverselyaffected


Capital MaintEnanCE Chapter 17

Share Capital

• Itisillegaltoissuesharesforanamountwhichislowerthanthenominalvalueoftheshare

• Wheresharesareissued,whetherforcashorotherwise,foranamountinexcessoftheirnominalvalue,anamountequaltothatexcessshallbecreditedtotheSharePremiumAccount

• Thesharepremiumaccountisanundistributablereserveandhasverylimiteduses:-

• Financetheissueoffullypaidbonussharestoexistingmembers

• Writeoffpreliminaryandformationexpenses

• Provideforthepremiumpayableontheredemptionofsharesordebentures

• Write off the expenses of, discounts allowed on or commissions paid on any issue of shares ordebentures

• Butthecombinationof‘discountsallowedon’and‘issueofshares’isanillegalcombination

• Despitetheprinciplethatsharesmaynotbeissuedatadiscount,privatecompaniesareabletoissuesharesinconsiderationfornon-cashgoodsorservicesreceived

• Thetrue/fairvalueofthesegoodsorservicescouldbelowerthanthenominalvalueofthesharesissued.Thisisnotillegal–butonlyappliestoprivatecompanies


Capital MaintEnanCE Chapter 17 120

Share Capital

• Variationofclassrights

• Rightsattachtoaparticularclassofshareandtypicallyreferto:-

- votingrights

- entitlementtodividends

- returnofcapitalinaliquidation

• Ifthevariationofrightsisspecifiedbytheconstitution,thenfollowtheconstitution

• Ifnotspecifiedbytheconstitution,thenspecialresolutionisneeded

• Note,ifconstitutionprovidesforthevariation,itcouldrequiremerelyanordinaryresolutionorcouldevenrequiresomegreatermajoritythan75%

• Theseprovisionsapplyevenforcompanieswithoutasharecapital,forexampleacompanylimitedbyguarantee


Capital MaintEnanCE Chapter 17

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Chapter 18

Cases

Cases – Same Names

Case name area of law Principle

Errington v Errington

Thomas v Thomas

Beswick v Beswick

Combe v Combe

Balfour v Balfour

Merritt v Merritt

Spellman v Spellman

Salomon v Salomon

Bamford v Bamford

Daniels v Daniels

Clemens v Clemens


Cases – Horses


Gunthing v Lynn

Felthouse v Bindley

Roscorla v Thomas

Lampleigh v Braithwait

Cases – Directions


Northland Airlines v Dennis Ferranti Meters

Central London Property Trust v High Trees House

Universal Furniture Products v Maple Flock Company

C & P Haulage v Middleton

Southern Foundries v Shirlaw

Allen v Gold Reefs of West Africa

Ebrahimi v Westbourne Galleries


CasEs Chapter 18 124

Cases – Colours


Whitely v Chappell

White v Bluett

Rose & Frank v Crompton

Express Newspapers v Silverstone

White & Carter Councils v MacGregor

Whaley Bridge v Green

Greenhalgh v Arderne Cinemas


Peso Silver Mines v Cropper


CasEs Chapter 18

Cases – Ships


Stilk v Myrick

Hartley v Ponsonby

The Moorcock

Avery v Bowden

The Mikalis Angelos

The Wagon Mound

Mersey Docks v Coggins

R v Oll



Cases – Cars


Carlill v Carbolic Smokeball

Williams v Carwardine

Thornton v Shoe Lane Parking

Hollier v Rambler Motors

Andrews v Singer

Lazenby Garages v Wright

Alexander v Rolls Royce

Dunlop v Selfridges

Dunlop v New Garage

Ford v Armstrong

Richley v Fould

Carslogie v Norway

Gilford Motor Co v Horne

Daimler v Continental Tyre and Rubber


CasEs Chapter 18


Pavlides v Jensen

Merritt v Merritt

Evans v Cross



Cases – Forenames


Garrod v Scott

Evans v Cross

R v Clark

Williams v Carwardine

Grainger v Gough

Ramsgate Victoria Hotel v Montefiori

Bradbury v Morgan

Dickinson v Dodds

Gunthing v Lynn

Harris v Nickerson

Harvey v Facey

Stevenson v McLean

Northland Airlines v Dennis Ferranti Meters

Powell v Lee


CasEs Chapter 18


Household Fire Insurance Co v Grant

Roscorla v Thomas

Collins v Godefroy

Williams v Roffey

Ward v Byham

Thomas v Thomas

Donohue v Stevenson

Shanklin Pier v Detel Products

D & C Builders v Rees

Parker v Clark

Rose & Frank v Crompton

Jones v Vernon Pools

Bettini v Gye

Hutton v Warren

Olley v Marlborough Court Hotel




Chapeltown v Barry

Curtis v Chemical Cleaning Company

Andrews v Singer

Victoria Laundry v Newman Industries

Hadley v Baxendale

Lazenby Garages v Wright

Jarvis v Swan Tours

Alexander v Rolls Royce

Hoenig v Isaacs

Warner Bros v Nelson

Lynn v Bamber

Latimer v AEC

Hedley Byrne v Heller

Jeb Fasteners v Marks Bloom

Caparo v Dickman


CasEs Chapter 18


Evert v Williams

Adams v Cape Industries

Jubilee Cotton Mills v Lewes

Clarke v Dunraven


Bushel v Faith

Regal ( Hastings ) v Gulliver

Howard Smith v Ampol Petroleum

Daniels v Daniels

Cases – Builders and Hotels


Ramsgate Victoria Hotel v Montefiori

Williams v Roffey

D & C Builders v Rees

Olley v Marlborough Court Hotel



Cases – Superman List


R v Clark

Parker v Clark

Rescission

Hickman v Kent or Romney Marsh Sheepbreeders Association

Clarke v Dunraven

Household Fire Insurance Co v Grant

Cases – Weapons List


Gunthing v Lynn

Central London Property Trust v High Trees House

Poussard v Spiers and Pond

Express Newspapers v Silverstone

Avery v Bowden

Thompson v Robinson

Planche v Colburn


CasEs Chapter 18

Cases – Films List


Gardner v Sevenoaks

Anglia TV v Reed

Warner Bros v Nelson

Photoproductions v Securicor

re F G Films

Greenhalgh v Arderne Cinemas

Regal ( Hastings ) v Gulliver

