Twycross v Grant
1877 · (1877) 2 CPD 469
Posted By lanbuk.com
- Facts
- Investors who took shares on the strength of a prospectus sued its for failing to disclose contracts as the statute then required.
- Issue
- Who is a promoter?
- Held
- Cockburn CJ described a promoter as one who undertakes to form a company with reference to a given project and to set it going, and who takes the necessary steps to accomplish that purpose. The were promoters.
- Principle
- Whether someone is a promoter is a question of fact about what they did to form the company.
- Why it matters
- It gives the classic description of a promoter.
Words and Latin in this note
- Promoter
- A person who undertakes to form a company for a project and takes the steps to set it going. Under section 50 of the Companies Act 2009 a promoter is a fiduciary and must not make an undisclosed profit. Open the note.
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.