Company Law case Essay Example | Topics and Well Written Essays - 2000 words

Company Law case - Essay Example In addition, a promoter is also expected to disclose any secret profits that he may have made in the process of promoting the company. This is illustrated in the case of Erlanger V New Sombrero Phosphates company limited (1878)2. In this case,Syndicate Erlanger purchased an island that was rich in phosphates at a price of 55,000 pounds; he later promoted a company and sold the sand island to the company he formed at 110,000 pounds which later failed. During the formation of the company, two of the directors were abroad while the rest had been nominated by Erlanger himself. When new directors took over the company, they filed a motion to rescind Erlanger. The court held that no proper disclosure on the sale was made and for this reason the company had a right to rescind the contract. Ricky is the individual who put everything together and saw to Ricky`s footwear becoming a legal company and is therefore the promoter of the company. He sold premises and stock and assets from his former business and made huge profits from the sales. The fiduciary duties that he owes the company would dictate that he discloses these profits. He however did not disclose them to either the members of an independent board or to all the new owners of the company as per the prospectus as was expected of him. For this reason, Ricky`s footwear limited has a legal claim against its promoter for making secret profits which is a breach of his obligations and it is therefore advisable that they pursue the matter in the relevant court of law. However, the company would not have had a case against Ricky had he disclosed the profits. In the event that Ricky`s footwear limited decides to file a motion against Ricky there are certain possible remedies that are available to the company at law should the court rule in their favor. These are: Under this remedy, the contract in question is reverted and relevant efforts are made

Land Law Assessed Coursework Essay Example | Topics and Well Written Essays - 1500 words

Land Law Assessed Coursework - Essay Example Firstly, he noticed Eve leading several goats into the garden of The Hollies. Simon told her that he was now the owner and that she had to remove the goats, but she produced a document described as a deed dated 1988 granting Eve the right to graze goats in the garden â€Å"for the rest of her life†. Secondly, he discovered that he couldn’t get into one of the outhouses. Simon had visited the property before buying and recalled glancing into the outhouse and seeing a man (Adam) working on a lathe. Simon asked him what he was doing there and Adam replied â€Å"give me a minute mate, this bit is very tricky†. Simon hung around for a minute or two, but then left to continue his inspection of The Hollies. However, now that Simon has purchased the property, he is aghast to see that Adam arrives in his van at 8:00 am every weekday morning to begin work in the outhouse claiming that he has a right to do so. Simon asked for evidence and was shown a document granting Adam exclusive possession of the outhouse for 5 years at  £50 per month. The document was dated 1st January 2008 and had been signed by both Adam and the previous owner, Luke. However, there was a gap on the document where their signatures should have been witnessed. Finally, Peter, Luke’s former partner arrived at The Hollies claiming that he has an interest in the property. It transpires that Peter and Luke separated several months ago and Peter has been on an extended holiday since the break-up. Apparently, Luke bought the property originally and put it in his sole name for ‘tax reasons’. Peter always understood that the reality was that they owned the property between them and as such, Peter ensured that he paid all of the bills enabling Luke to meet the mortgage repayments. Simon told Peter that he’d had a good look around the property before buying and didn’t recall seeing any evidence of