Interest — interest rate agreed for a loan — defendant complaining that interest rate is unconscionable — whether court has power to review interest rate agreed on. Contract — contract of guarantee—— loan made to company — defendant executing personal guarantee — guarantee incorporated in the loan agreement — whether there was consideration for the guarantee. The plaintiff advanced a loan to a company at an agreed interest rate on the strength of personal guarantees by its directors. The terms of the guarantees were incorporated in the loan agreement.
Australian Corporate Law Directors duties: He asks you if this can be done, and if so, how?
See s,sG Consider the common law and statutory duties as they may apply in the following questions. Simpson is the managing director of Developers Ltd. Simpson, whilst out looking for a site which would suit the company for this purpose, discovers a piece of land which will soon adjoin a new main highway.
Realising the value of the land for development as a factory site, Simpson, without informing the shareholders in Developers Ltd. Hawkins, a major shareholder in Developers Ltd. Simpson replies that he is not aware that he has done anything improper, especially as Developers Ltd. What are the possible remedies available to Developers Ltd if Simpson is found to have breached such duties?
The directors believed the land was surplus to its needs. On advice of its merchant banker the directors decided to invest the money from the sale into high growth biotechnology shares.
Despite the adverse effect the fall in this asset the directors sign off on the financial reports on the recommendation of Jill the CFO.
Discuss the duty of care owed by directors and other officers to the company and advise whether action can be taken against them. S 1 Also advise whether the directors can rely on the business judgement rule. Femplacement cannot pay its debts and obligations. Mrs Loosley suffers a nervous breakdown as a result and can no longer run the affairs of the company.
Mr Loosley takes control of the company and for some 8 months tries to restore its fortunes without success. Femplacement Pty Ltd fails financially. Friendly Consulting, a creditor of the company, was engaged by Mr Loosley to do some consulting work, and has not been paid for the last two months wishes to bring an action against Mr Loosley for insolvent trading.
Some years later it transferred its activities to dealing in antique gold and diamonds jewellery although it had no power in its Constitution to engage in such a business. The constitution has no limits on the companies borrowing capacity but is does require both directors to sign all loan documents and affix the company seal.
Without Terry knowing Tom signs for himself and Terry.Jan 01, · There are exceptions to the rule described in the Turquands case, which opposes the proposition of principal liability, for example, where an outsider knows of an irregularity 6.
This may include whether the third party is put on enquiry for instances where a seal is affixed with authority or whether the persons purporting to countersign .
Discuss the role of the president when setting American foreign policy. What checks does Congress have on the president in this role? Civil Case No of Company Law – Rule in Turquand’s case – loan advanced to a company – company alleging that its own procedures for borrowing not complied with – lender having no actual knowledge of the procedures – whether defence that borrowing was not authorized reasonable – defendant a signatory to company cheque–– cheque .
The Turquand Rule – Statutory and Common Law The Turquand Rule otherwise known as the internal management rule was first developed in Royal British Bank v Turquand () 6 E & B , ER So in he started at the mid-league firm of Turquands Barton Mayhew, auditing clients such as Ladbrokes and Bowater.
Rake was said to have sent a case of vintage champagne to his rival to. If sales “are made entirely by mail or telephone,” the Cooling-Off Rule does not apply because in such cases there is no way for the consumer to truly prove unto him- or herself that the seller is genuine (“The Cooling-Off Rule”).
Turquands Rule ; Act and Rule Utilitarianism ; Rule of Augustine V. Einhards Charlemagne.