The Business Mans Legal Adviser volume 4

Cover The Business Mans Legal Adviser volume 4
The Business Mans Legal Adviser volume 4
Albert Sidney Bolles
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Of Yale Law Journal, 1903, for a full exposition of the law on this subject.
866 BUSINESS MAN'S LEGAL ADVISER prospectus intended for general circulation and to advertise and give credit to the company with the pub- lic, they are responsible for the natural consequences of their action, and if the report or prospectus were false or fraudulently made, anyone who is misled thereby has an action against the directors. This principle has been applied on many occasions.
In one of these cases, which
...has often been cited, the directors were promoters of a mining company, and a purchaser, by their false statements, was led to believe that the company owned a large amount of property. Relying on them, he purchased shares in the company, which proved to be worthless. He had the satisfaction though of recovering from them his loss.
21. To maintain this action it must be shown that their representations were false and made wilfully. They are assumed to have general knowledge of the company's management and financial condition.


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