QUESTION ONE

a)Green park Limited issued a prospectus inviting members of the public to subscribe for its shares. It was stated in the prospectus that the money was required for the purchase of modern equipment to be used for expansion of the company's business. On the strength of this statement, Rose Sarina purchased shares of the company but she has since learnt that all the money received was used to repay the debts of the company which were long overdue. Rose Sarina feels shortchanged and seeks your legal advice.

Analyze the legal principles applicable in the above case and advise Rose Sarina appropriately. (10mks)

b)Describe three real circumstances under which the veil of incorporation of a company was lifted (10mks)