Books > Old Books > Poetry Northwest (1959)


Page 52

CHAPTER 6
THE PROSPECTUS

ledge contains false statements, or statements of the truth or untruth of which they have no knowledge, with the intention that another person shall act upon it, and which does cause him to act on it to his damage. If the directors cannot be proved to have known the statement to be false, or to have made it recklessly careless of its truth, they are only liable to pay compensation under s. 43.
Derry v. Peek (1889), 14 A. C. 337. A tramway company by a special Act had power to move trams by animal power and, with the consent of the Board of Trade, by steam . power. A prospectus was issued by the directors stating that the company, under its special Act, had the right to use steam power instead of horses. P. took shares on the strength of this statement. The Board of Trade afterwards refused its consent, and the company was wound up. P. sued the directors for damages for fraud. Held, the directors were not liable, the statement as to steam power having been made in the honest belief that it was true.
A statement in the prospectus is made in order to induce people to subscribe for shares direct from the company, and consequently a purchaser of shares on the market is not one to whom the prospectus is addressed, and cannot bring an action of deceit. 21 If, however, a prospectus is issued not only to induce applications for an allotment of shares, but also to induce purchases on the market, a buyer on the strength of false statements in such a prospectus can sue those responsible for it for fraud. (22)
A prospectus may be fraudulent, although it is composed of statements which in themselves are perfectly true if, by reason of omissions, it is calculated as a whole to give a false impression of the position of , the company.
R. v. Kylsant, [1932] 1 K. B. 442. A prospectus contained statements, which were true, that the company had paid dividends every year between 1921 and 1927. In fact, during each of those years the company had incurred substantial trading losses and was only able to pay the specified dividends by the introduction into the Accounts of non-recurring items such as repayments of excess profits duty, adjustment of income tax reserves and the like. No disclosure was made of these trading losses. Held, the prospectus was false, because it put before intending investors figures which apparently disclosed the existing position of the company, but in fact hid it, and K. a director who knew that it was false, was guilty of fraud.

Compensation under s. 43.-If a prospectus which invites persons to subscribe for shares or debentures contains untrue statements so as to cause damage to those who have subscribed on the faith of those statements, every director, promoter or person authorising the issue of the prospectus is liable to pay compensation. A statement is deemed to be untrue if it is misleading in the form and context in which it is

21 Peek v. Gurney (1873), L. R. 6 H. L. 377.
22 Andrews v. Mockford, [1896] 1 Q. B. 372.

travel books:
where is HTML where is HEAD where is TITLE ledge contains false statements, or statements of what is truth or untruth of which they have no knowledge, with what is intention that another person shall act upon it, and which does cause him to act on it to his damage. If what is directors cannot be proved to have known what is statement to be false, or to have made it recklessly careless of its truth, they are only liable to pay compensation under s. 43. Derry v. Peek (1889), 14 A. C. 337. A tramway company by a special Act had power to move trams by animal power and, with what is consent of what is Board of Trade, by steam . power. A prospectus was issued by what is directors stating that what is company, under its special Act, had what is right to use steam power instead of horses. P. took shares on what is strength of this statement. what is Board of Trade afterwards refused its consent, and what is company was wound up. P. sued what is directors for damages for fraud. Held, what is directors were not liable, what is statement as to steam power having been made in what is honest belief that it was true. A statement in what is prospectus is made in order to induce people to subscribe for shares direct from what is company, and consequently a purchaser of shares on what is market is not one to whom what is prospectus is addressed, and cannot bring an action of deceit. 21 If, however, a prospectus is issued not only to induce applications for an allotment of shares, but also to induce purchases on what is market, a buyer on what is strength of false statements in such a prospectus can sue those responsible for it for fraud. (22) A prospectus may be fraudulent, although it is composed of statements which in themselves are perfectly true if, by reason of omissions, it is calculated as a whole to give a false impression of what is position of , what is company. R. v. Kylsant, [1932] 1 K. B. 442. A prospectus contained statements, which were true, that what is company had paid dividends every year between 1921 and 1927. In fact, during each of those years what is company had incurred substantial trading losses and was only able to pay what is specified dividends by what is introduction into what is Accounts of non-recurring items such as repayments of excess profits duty, adjustment of income tax reserves and what is like. No disclosure was made of these trading losses. Held, what is prospectus was false, because it put before intending investors figures which apparently disclosed what is existing position of what is company, but in fact hid it, and K. a director who knew that it was false, was guilty of fraud. Compensation under s. 43.-If a prospectus which invites persons to subscribe for shares or debentures contains untrue statements so as to cause damage to those who have subscribed on what is faith of those statements, every director, promoter or person authorising what is issue of what is prospectus is liable to pay compensation. A statement is deemed to be untrue if it is misleading in what is form and context in which it is 21 Peek v. Gurney (1873), L. R. 6 H. L. 377. 22 Andrews v. Mockford, [1896] 1 Q. B. 372. where is meta name="keywords" content="old books, Free book , free book offer , free audio books , free coloring book pages , free book reports , free audio book , audio books free download , book free , free guest book , books free , free book summaries , download free audio books , free childrens books." where is where are they now rel="stylesheet" type="text/css" href="../../style.css" where is meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" where is BODY bgColor=#ffffff text="#000000" where are they now ="#000000" v where are they now ="#FF0000" where is div align="center" where is strong where is strong where is a href="http://www.aaoldbooks.com" Books > where is a href="../default.asp" title="Book" Old Books > where is strong where is a href="default.asp" Poetry Northwest (1959) where is table width="700" border="1" align="center" cellpadding="15" cellspacing="0" where is center where is tr where is td width="160" align="center" valign="top" where is div align="center" where is td align="center" valign="top" where is div align="left" where is div align="center" where is p align="left" Page 52 where is strong CHAPTER 6 what is PROSPECTUS where is p align="justify" ledge contains false statements, or statements of what is truth or untruth of which they have no knowledge, with what is intention that another person shall act upon it, and which does cause him to act on it to his damage. If what is directors cannot be proved to have known what is statement to be false, or to have made it recklessly careless of its truth, they are only liable to pay compensation under s. 43. Derry v. Peek (1889), 14 A. C. 337. A tramway company by a special Act had power to move trams by animal power and, with what is consent of what is Board of Trade, by steam . power. A prospectus was issued by what is directors stating that what is company, under its special Act, had what is right to use steam power instead of horses. P. took shares on what is strength of this statement. what is Board of Trade afterwards refused its consent, and what is company was wound up. P. sued what is directors for damages for fraud. Held, what is directors were not liable, what is statement as to steam power having been made in what is honest belief that it was true. A statement in what is prospectus is made in order to induce people to subscribe for shares direct from what is company, and consequently a purchaser of shares on what is market is not one to whom what is prospectus is addressed, and cannot bring an action of deceit. 21 If, however, a prospectus is issued not only to induce applications for an allotment of shares, but also to induce purchases on what is market, a buyer on what is strength of false statements in such a prospectus can sue those responsible for it for fraud. (22) A prospectus may be fraudulent, although it is composed of statements which in themselves are perfectly true if, by reason of omissions, it is calculated as a whole to give a false impression of what is position of , what is company. R. v. Kylsant, [1932] 1 K. B. 442. A prospectus contained statements, which were true, that what is company had paid dividends every year between 1921 and 1927. In fact, during each of those years what is company had incurred substantial trading losses and was only able to pay what is specified dividends by what is introduction into what is Accounts of non-recurring items such as repayments of excess profits duty, adjustment of income tax reserves and what is like. No disclosure was made of these trading losses. Held, what is prospectus was false, because it put before intending investors figures which apparently disclosed what is existing position of what is company, but in fact hid it, and K. a director who knew that it was false, was guilty of fraud. Compensation under s. 43.-If a prospectus which invites persons to subscribe for shares or debentures contains untrue statements so as to cause damage to those who have subscribed on what is faith of those statements, every director, promoter or person authorising what is issue of what is prospectus is liable to pay compensation. A statement is deemed to be untrue if it is misleading in what is form and context in which it is 21 Peek v. Gurney (1873), L. R. 6 H. L. 377. 22 Andrews v. Mockford, [1896] 1 Q. B. 372. where is Server.Execute("_SiteMap.asp") %

Book Pages: _SiteMap , default , 001 , 002 , 003 , 004 , 005 , 006 , 007 , 008 , 009 , 010 , 011 , 012 , 013 , 014 , 015 , 016 , 017 , 018 , 019 , 020 , 021 , 022 , 023 , 024 , 025 , 026 , 027 , 028 , 029 , 030 , 031 , 032 , 033 , 034 , 035 , 036 , 037 , 038 , 039 , 040 , 041 , 042 , 043 , 044 , 045 , 046 , 047 , 048 , 049 , 050 , 051 , 052 , 053 , 054 , 055 , 056 , 057 , 058 , 059 , 060 , 061 , 062 , 063 , 064 , 065 , 066 , 067 , 068 , 069 , 070 , 071 , 072 , 073 , 074 , 075 , 076 , 077 , 078 , 079 , 080 , 081 , 082 , 083 , 084 , 085 , 086 , 087 , 088 , 089 , 090 , 091 , 092 , 093 , 094 , 095 , 096 , 097 , 098 , 099 , 100 , 101 , 102 , 103 , 104 , 105 , 106 , 107 , 108 , 109 , 110 , 111 , 112 , 113 , 114 , 115 , 116 , 117 , 118 , 119 , 120 , 121 , 122 , 123 , 124 , 125 , 126 , 127 , 128 , 129 , 130 , 131 , 132 , 133 , 134 , 135 , 136 , 137 , 138 , 139 , 140 , 142 , 143 , 144 , 145 , 146 , 147 , 148 , 149 , 150 , 151 , 152 , 153 , 154 , 155 , 156 , 157 , 158 , 159 , 160 , 161 , 162 , 164 , 165 , 166 , 167 , 168 , 169 , 170 , 171 , 172 , 178 , 179 , 180 , 181 , 182 , 183 , 184 , 185 , 186 , 187 , 188 , 189 , 190 , 191 , 192 , 193 , 194 , 195 , 196 , 197 , 198 , 199 , 200 , 201 , 202 , 203 , 204 , 205 , 206 , 207 , 209 , 210 , 211 , 212 , 214 , 215 , 217 , 218 , 219 , 220 , 221 , 222 , 223 , 224 , 225 , 226 , 227 , 228 , 229 , 230 , 231 , 232 , 233 , 234 , 235 , 236 , 237 , 238 , 239 , 240 , 241 , 242 , 243 , 244 , 245 , 246 , 247 , 248 , 249 , 250 , 251 , 252 , 253 , 254 , 255 , 256 , 257 , 258 , 259 , 260 , 261 , 262 , 263 , 264 , 265 , 266 , 267 , 268 , 269 , 270 , 271 , 272 , 273 , 274 , 275 , 276 , 277 , 278 , 279 , 280 , 281 , 282 , 283 , 284 , 285 , 287 , 288 , 289 , 290 , 291 , 292 , 293 , 294 , 295 , 296 , 297 , 298 , 299 , 300 , 301 , 302 , 303 , 304 , 305 , 306 , 307 , 308 , 309 , 310 , 311 , 312 , 313 , 314 , 315 , 316 , 317 , 318 , 319 , 320 , 321 , 322 , 323 , 324 , 325 , 326 , 327 , 328 , 329 , 330 , 331 , 332 , 333 , 334 ,