Law and the Coporation

Topics: Law, Fiduciary, United Kingdom company law Pages: 4 (1327 words) Published: May 6, 2012
Buying and selling Blueacre

Assignment: Law and the Corporation

Module code: 2_Law253

Word Count: 1201

Lorenzo Henrique Panero

S00401030

Outline:
1.Case summary
2.Definition of term
3.Case analysis
4.Breach of promoters duties
5.Damages and remedies
6.Conclusion

1.Case summary
In this case, Felix before becoming a promoter bought a land (Blueacre) worthy £200,000. Later he entered into a contact with a company to act as a promoter. However, Felix as a promoter oversaw the sale of Blueacre to the company for £400,000. The case analyses the legal implication made with regard to company act and corporate law.

2.Definition of term
The Company’s Act does not define a promoter thus making it an obligation of a company to proof beyond reasonable doubt that indeed an individual (Felix) acted as its promoter (McGaughey, 2006, p.1; The University of Pennsylvania Law Review 1906, p.66). However, based on lawsuit Whaley Bridge Printing Co v Green [1879] the court observed that ‘promoter’ was more of a business term than law term which was used to mean all the business transactions which assisted in company formation (The University of Pennsylvania Law Review 1906, p.66; Bourne & Pillans1999, p.25). Additionally, in the lawsuit Emma Silver Mining Company v. Lewis [1879], a promoter was defined as “the idea of exertion for purpose of getting up and starting a company” (The University of Pennsylvania Law Review 1906, p.66). The implication made on this two occasions is that a promoter aids in a company start up by providing services like purchase of a property on behalf of a company. The definition and role of a promoter can also be found in Twycross v. grant (1877) case where Cockburn J said that a promoter carries a certain project during the initial formation of a company until that particular assigned purpose is accomplished (Bourne & Pillans1999, P....
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