Case Study Related To Company Law

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In the majority of regions throughout the world, Case law is commonly referred to as ‘common law’.

This terminology derives from the fact that, while forms of legislation are typically passed by a distinct government branch, the court system is able to exercise authority through the use of precedent and case law.

As a result of this function, many state courts do not contribute or add to the body of case law.

Furthermore, Federal trial courts—such as the United States District Court—will also not publish opinions that would otherwise be added to case law.

(Case- study ) | May 30 2013 | Commercial applications of company law CONTENTS 1. ISSUES ………………………….................................................... However simply abstaining from voting would not be enough to prevent liability.

INTRODUCTION ................................................................................ Diana can argued that she was not breach of duty under section 181 3) If directors had reasonable grounds to expect solvency S588H (2) they may also be able to use this as a defence Elizabeth could not use this defence as she had not attended any meetings and seemed to make no attempt to acquaint herself with the affairs of the company.However, attending law school isn't strictly necessary to acquire this valuable skill.You can teach yourself how to analyze case law, which begins – but doesn't end – with a thorough reading of the court's written opinion.Cases on separate legal entity Kandoli tea company Ltd(1886) Facts Certain persons transferred their properties in the name of company on which tax was payable. (1895 - 99) Facts- Saloman sold his business to a company named Saloman & Company Ltd., which he formed. The price paid by the company to Saloman was 30,000, but instead of paying him, cash, the company gave him 20,000 fully paid shares of 1 each &10,000 in debentures. (1960) Facts- Lee incorporated a company of which he was the managing director. Home (1933) Facts- Home was appointed as a managing director of the plaintiff company on the condition that "he shall not at any time while he shall hold the office of a managing director or afterwards, solicit or entice away the customers of the company." His employment was determined under an agreement. Question arose whether the company had become an enemy company due to war&should be barred from maintaining the action. A Company incorporated in United Kingdom is a legal entity, a creation of law with the status & capacity which the law confers. It is not a natural person with mind or conscience. Workmen employed in associated rubber industries Facts A subsidiary company was formed wholly by the holding company with no assets of its own except those transferred to it by the holding company, with no business or income of its own except receiving dividend from shares transferred to it by the holding company. Films Ltd., case Facts An American company produced a film in India actually in the name of British company wherein 90% of the share capital was held by the chairman of the American company which financed the production of the film.Petition Petitioners claimed exemption from such tax on the ground that the transfer was from them individually to themselves in another name. The company wound up & the assets of the company amounted to 6,000 only. In that capacity he appointed himself as a pilot of the company. A shareholder cannot insure the company's property in his own name even if he is the owner of all or most of the company's shares. Shortly afterwards he opened a business in the name of a company which solicited the plaintiffs customers. Judgment Court held that the company was formed as a devide to reduce the profitsof the holding company and thereby reduce the bonus to workmen. Judgement The contention of the sensor board of films refusing to register the film on the ground that British company has acted merely as an agent of British company was correct. ARGUMENTS OF THE DIRECTORS FOR THEIR DEFENCE.................... ARGUMENTS PUT BY ASIC AND THE COMPANY............................ BREACH OFIf Diana had tried to talk the other directors out of proceeding with the loan and had voiced her concerns and had backed them up with positive action such resigning her position as director then she may escape liability.But she might argue in her favour that she is not in breach of duty under section 181 of the corporation act, which states that: a director or other officer of a corporation must exercise their powers and discharge their duties: - In good faith in the best interests of the corporation - For a proper purpose 4) Brian could not use the defence that he was no longer a director of the company as he was involved at the time the debt was incurred.But a major portion of American law actually is case law – the rules appellate judges distill from their interpretation of statutes and other sources.Accordingly, much of law school is spent learning how to analyze case law.S588G applies, when a person is a director of the company at that time company incurs a debt.This section applies to Brian because he was the directors of the company and participates actively in the meetings.

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