Wednesday, January 20, 2016

DANIEL McNAGHTEN'S CASE

MODEL PENAL CODE ANNOTATED
DANIEL M'NAGHTEN'S CASE
 
House of Lords
Mews' Dig. i. 349; iv. 1112. S.C. 8 Scott N.R. 595; 1 C. and K. 130; 4 St. Tr. N.S. 847
May 26, June 19, 1843
  The prisoner had been indicted for that he, on the 20th day of January 1843, at the parish of Saint Martin in the Fields, in the county of Middlesex, and within the jurisdiction of the Central Criminal Court, in and upon one Edward Drummond, feloniously, wilfully, and of his malice aforethought, did make an assault; and that the said Daniel M'Naghten, a certain pistol of the value of 20's., loaded and charged with gunpowder and a leaden bullet (which pistol he in his right hand had and held), to, against and upon the said Edward Drummond, feloniously, wilfully, and of his malice aforethought, did shoot and discharge; and that the said Daniel M'Naghten, with the leaden bullet aforesaid, out of the pistol aforesaid, by force of the gunpowder, etc., the said Edward Drummond, in and upon the back of him the said Edward Drummond, feloniously, etc. did strike, penetrate and wound, giving to the said Edward Drummond, in and upon the back of the said Edward Drummond, one mortal wound, etc., of which mortal wound the said E. Drummond languished until the 25th of April and then died; and that by the means aforesaid, he the prisoner did kill and murder the said Edward Drummond. The prisoner pleaded Not guilty.
Evidence having been given of the fact of the shooting of Mr. Drummond, and of his death in consequence thereof, witnesses were called on the part of the prisoner, to prove that he was not, at the time of committing the act, in a sound state of mind. The medical evidence was in substance this: That persons of otherwise sound mind, might be affected by morbid delusions: that the prisoner was in that condition: that a person so labouring under a morbid delusion, might have a moral perception of right and wrong, but that in the case of the prisoner it was a delusion which carried him away beyond the power of his own control, and left him no such perception; and that he was not capable of exercising any control over acts which had connexion with his delusion: that it was of the nature of the disease with which the prisoner was affected, to go on gradually until it had reached a climax, when it burst forth with irresistible intensity: that a man might go on for years quietly, though at the same time under its influence, but would all at once break out into the most extravagant and violent paroxysms.
Some of the witnesses who gave this evidence, had previously examined the prisoner: others had never seen him till he appeared in Court, and they formed their opinions on hearing the evidence given by the other witnesses.
Lord Chief Justice Tindal (in his charge):--The question to be determined is, whether at the time the act in question was committed, the prisoner had or had not the use of his understanding, so as to know that he was doing a wrong or wicked act. If the jurors should be of opinion that the prisoner was not sensible, at the time he committed it, that he was violating the laws both of God and man, then he would be entitled to a verdict in his favour: but if, on the contrary, they were of opinion that when he committed the act he was in a sound state of mind, then their verdict must be against him.
Verdict, Not guilty, on the ground of insanity.
This verdict, and the question of the nature and extent of the unsoundness of mind which would excuse the commission of a felony of this sort, having been made the subject of debate in the House of Lords (the 6th and 13th March 1843; see Hansard's Debates, vol. 67, pp. 288, 714), it was determined to take the opinion of the Judges on the law governing such cases. Accordingly, on the 26th of May, all the Judges attended their Lordships, but no questions were then put.
On the l9th of June, the Judges again attended the House of Lords; when (no argument having been had) the following questions of law were propounded to them:--
1st. What is the law respecting alleged crimes committed by persons afflicted with insane delusion, in respect of one or more particular subjects or persons: as, for instance, where at the time of the commission of the alleged crime, the accused knew he was acting contrary to law, but did the act complained of with a view, under the influence of insane delusion, of redressing or revenging some supposed grievance or injury, or of producing some supposed public benefit?
2d. What are the proper questions to be submitted to the jury, when a person alleged to be afflicted with insane delusion respecting one or more particular subjects or persons, is charged with the commission of a crime (murder, for example), and insanity is set up as a defence?
3d. In what terms ought the question to be left to the jury, as to the prisoner's state of mind at the time when the act was committed?
4th. If a person under an insane delusion as to existing facts, commits an offence in consequence thereof, is he thereby excused?
5th. Can a medical man conversant with the disease of insanity, who never saw the prisoner previously to the trial, but who was present during the whole trial and the examination of all the witnesses, be asked his opinion as to the state of the prisoner's mind at the time of the commission of the alleged crime, or his opinion whether the prisoner was conscious at the time of doing the act, that he was acting contrary to law, or whether he was labouring under any and what delusion at the time?
Mr. Justice Maule:--I feel great difficulty in answering the questions put by your Lordships on this occasion:--First, because they do not appear to arise out of and are not put with reference to a particular case, or for a particular purpose, which might explain or limit the generality of their terms, so that full answers to them ought to be applicable to every possible state of facts, not inconsistent with those assumed in the questions: this difficulty is the greater, from the practical experience both of the bar and the Court being confined to questions arising out of the facts of particular cases:--Secondly, because I have heard no argument at your Lordships' bar or elsewhere, on the subject of these questions; the want of which I feel the more, the greater are the number and extent of questions which might be raised in argument:--and Thirdly, from a fear of which I cannot divest myself, that as these questions relate to matters of criminal law of great importance and frequent occurrence, the answers to them by the Judges may embarrass the administration of justice, when they are cited in criminal trials. For these reasons I should have been glad if my learned brethren would have joined me in praying your Lordships to excuse us from answering these questions; but as I do not think they ought to induce me to ask that indulgence for myself individually, I shall proceed to give such answers as I can, after the very short time which I have had to consider the questions, and under the difficulties I have mentioned; fearing that my answers may be as little satisfactory to others as they are to myself.
The first question, as I understand it, is, in effect, What is the law respecting the alleged crime, when at the time of the commission of it, the accused knew he was acting contrary to the law, but did the act with a view, under the influence of insane delusion, of redressing or revenging some supposed grievance or injury, or of producing some supposed public benefit?--If I were to understand this question according to the strict meaning of its terms, it would require, in order to answer it, a solution of all questions of law which could arise on the circumstances stated in the question, either by explicitly stating and answering such questions, or by stating some principles or rules which would suffice for their solution. I am quite unable to do so, and, indeed, doubt whether it be possible to be done; and therefore request to be permitted to answer the question only so far as it comprehends the question, whether a person, circumstanced as stated in the question, is, for that reason only, to be found not guilty of a crime respecting which the question of his guilt has been duly raised in a criminal proceeding? and I am of opinion that he is not. There is no law, that I am aware of, that makes persons in the state described in the question not responsible for their criminal acts. To render a person irresponsible for crime on account of unsoundness of mind, the unsoundness should, according to the law as it has long been understood and held, be such as rendered him incapable of knowing right from wrong. The terms used in the question cannot be said (with reference only to the usage of language) to be equivalent to a description of this kind and degree of unsoundness of mind. If the state described in the question be one which involves or is necessarily connected with such an unsoundness, this is not a matter of law but of physiology, and not of that obvious and familiar kind as to be inferred without proof.
Second, the questions necessarily to be submitted to the jury, are those questions of fact which are raised on the record. In a criminal trial, the question commonly is, whether the accused be guilty or not guilty: but, in order to assist the jury in coming to a right conclusion on this necessary and ultimate question, it is usual and proper to submit such subordinate or intermediate questions, as the course which the trial has taken may have made it convenient to direct their attention to. What those questions are, and the manner of submitting them, is a matter of discretion for the Judge: a discretion to be guided by a consideration of all the circumstances attending the inquiry. In performing this duty, it is sometimes necessary or convenient to inform the jury as to the law; and if, on a trial such as is suggested in the question, he should have occasion to state what kind and degree of insanity would amount to a defence, it should be stated conformably to what I have mentioned in my answer to the first question, as being, in my opinion, the law on this subject.
Third, there are no terms which the Judge is by law required to use. They should not be inconsistent with the law as above stated, but should be such as, in the discretion of the Judge, are proper to assist the jury in coming to a right conclusion as to the guilt of the accused.
Fourth, the answer which I have given to the first question, is applicable, to this.
Fifth, whether a question can be asked, depends, not merely on the questions of fact raised on the record, but on the course of the cause at the time it is proposed to ask it; and the state of an inquiry as to the guilt of a person charged with a crime, and defended on the ground of insanity, may be such, that such a question as either of those suggested, is proper to be asked and answered, though the witness has never seen the person before the trial, and though he has merely been present and heard the witnesses: these circumstances, of his never having seen the person before, and of his having merely been present at the trial, not being necessarily sufficient, as it seems to me, to exclude the lawfulness of a question which is otherwise lawful; though I will not say that an inquiry might not be in such a state, as that these circumstances should have such an effect.
Supposing there is nothing else in the state of the trial to make the questions suggested proper to be asked and answered, except that the witness had been present and heard the evidence; it is to be considered whether that is enough to sustain the question. In principle it is open to this objection, that as the opinion of the witness is founded on those conclusions of fact which he forms from the evidence, and as it does not appear what those conclusions are, it may be that the evidence he gives is on such an assumption of facts, as makes it irrelevant to the inquiry. But such questions have been very frequently asked, and the evidence to which they are directed has been given, and has never, that I am aware of, been successfully objected to. Evidence, most clearly open to this objection, and on the admission of which the event of a most important trial probably turned, was received in the case of The Queen v. M'Naghten, tried at the Central Criminal Court in March last, before the Lord Chief Justice, Mr. Justice Williams, and Mr. Justice Coleridge, in which counsel of the highest eminence were engaged on both sides; and I think the course and practice of receiving such evidence, confirmed by the very high authority of these Judges, who not only received it, but left it, as I understand, to the jury, without any remark derogating from its weight, ought to be held to warrant its reception, notwithstanding the objection in principle to which it may be open. In cases even where the course of practice in criminal law has been unfavourable to parties accused, and entirely contrary to the most obvious principle of justice and humanity, as well as those of law, it has been held that such practice constituted the law, and could not be altered without the authority of Parliament.
Lord Chief Justice Tindal:--My Lords, Her Majesty's Judges (with the exception of Mr. Justice Maule, who has stated his opinion to your Lordships), in answering the questions proposed to them by your Lordships' House, think it right, in the first place, to state that they have forborne entering into any particular discussion upon these questions, from the extreme and almost insuperable difficulty of applying those answers to cases in which the facts are not brought judicially before them. The facts of each particular case must of necessity present themselves with endless variety, and with every shade of difference in each case; and as it is their duty to declare the law upon each particular case, on facts proved before them, and after hearing argument of counsel thereon, they deem it at once impracticable, and at the same time dangerous to the administration of justice, if it were practicable, to attempt to make minute applications of the principles involved in the answers given by them to your Lordships' questions.
They have therefore confined their answers to the statement of that which they hold to be the law upon the abstract questions proposed by your Lordships; and as they deem it unnecessary, in this peculiar case, to deliver their opinions seriatim, and as all concur in the same opinion, they desire me to express such their unanimous opinion to your Lordships.
The first question proposed by your Lordships is this: "What is the law respecting alleged crimes committed by persons afflicted with insane delusion in respect of one or more particular subjects or persons: as, for instance, where at the time of the commission of the alleged crime the accused knew he was acting contrary to law, but did the act complained of with a view, under the influence of insane delusion, of redressing or revenging some supposed grievance or injury, or of producing some supposed public benefit ?"
In answer to which question, assuming that your Lordships' inquiries are confined to those persons who labour under such partial delusions only, and are not in other respects insane, we are of opinion that, notwithstanding the party accused did the act complained of with a view under the influence of insane delusion, of redressing or revenging some supposed grievance or injury, or of producing some public benefit, he is nevertheless punishable according to the nature of the crime committed, if he knew at the time of committing such crime that he was acting contrary to law; by which expression we understand your Lordships to mean the law of the land.
Your Lordships are pleaded to inquire of us, secondly, "What are the proper questions to be submitted to the jury, where a person alleged to be afflicted with insane delusion respecting one or more particular subjects or persons, is charged with the commission of a crime (murder, for example), and insanity is set up as a defence?" And, thirdly, "In what terms ought the question to be left to the jury as to the prisoner's state of mind at the time when the act was committed?" And as these two questions appear to us to be more conveniently answered together, we have to submit our opinion to be, that the jurors ought to be told in all cases that every man is to be presumed to be sane, and to possess a sufficient degree of reason to be responsible for his crimes, until the contrary be proved to their satisfaction; and that to establish a defence on the ground of insanity, it must be clearly proved that, at the time of the committing of the act, the party accused as labouring under such a defect of reason, from disease of the mind, as not to know the nature and quality of the act he was doing; or, if he did know it, that he did not know he was doing what was wrong. The mode of putting the latter part of the question to the jury on these occasions has generally been, whether the accused at the time of doing the act knew the difference between right and wrong: which mode, though rarely, if ever, leading to any mistake with the jury, is not, as we conceive, so accurate when put generally and in the abstract, as when put with reference to the party's knowledge of right and wrong in respect to the very act with which he is charged. If the question were to be put as to the knowledge of the accused solely and exclusively with reference to the law of the land, it might tend to confound the jury, by inducing them to believe that an actual knowledge of the law of the land was essential in order to lead to a conviction; whereas the law is administered upon the principle that every one must be taken conclusively to know it, without proof that he does know it. If the accused was conscious that the act was one which he ought not to do, and if that act was at the same time contrary to the law of the land, he is punishable; and the usual course therefore has been to leave the question to the jury, whether the party accused had a sufficient degree of reason to know that he was doing an act that was wrong: and this course we think is correct, accompanied with such observations and explanations as the circumstances of each particular case may require.
The fourth question which your Lordships have proposed to us is this:--"If a person under an insane delusion as to existing facts, commits an offence in consequence thereof, is he thereby excused ?" To which question the answer must of course depend on the nature of the delusion: but, making the same assumption as we did before, namely, that he labours under such partial delusion only, and is not in other respects insane, we think he must be considered in the same situation as to responsibility as if the facts with respect to which the delusion exists were real. For example, if under the influence of his delusion he supposes another man to be in the act of attempting to take away his life, and he kills that man, as he supposes, in self-defence, he would be exempt from punishment. If his delusion was that the deceased had inflicted a serious injury to his character and fortune, and he killed him in revenge for such supposed injury, he would be liable to punishment.
The question lastly proposed by your Lordships is:--"Can a medical man conversant with the disease of insanity, who never saw the prisoner previously to the trial, but who was present during the whole trial and the examination of all the witnesses, be asked his opinion as to the state of the prisoner's mind at the time of the commission of the alleged crime, or his opinion whether the prisoner was conscious at the time of doing the act that he was acting contrary to law, or whether he was labouring under any and what delusion at the time?" In answer thereto, we state to your Lordships, that we think the medical man, under the circumstances supposed, cannot in strictness be asked his opinion in the terms above stated, because each of those questions involves the determination of the truth of the facts deposed to, which it is for the jury to decide, and the questions are not mere questions upon a matter of science, in which case such evidence is admissible. But where the facts are admitted or not disputed, and the question becomes substantially one of science only, it may be convenient to allow the question to be put in that general form, though the same cannot be insisted on as a matter of right.
Lord Brougham:--My Lords, the opinions of the learned Judges, and the very able manner in which they have been presented to the House, deserve our best thanks. One of the learned Judges has expressed his regret that these questions were not argued by counsel. Generally speaking, it is most important that in questions put for the consideration of the Judges, they should have all that assistance which is afforded to them by an argument by counsel: but at the same time, there can be no doubt of your Lordships' right to put, in this way, abstract questions of law to the Judges, the answer to which might be necessary to your Lordships in your legislative capacity. There is a precedent for this course, in the memorable instance of Mr. Fox's Bill on the law of libel; where, before passing the Bill, this House called on the Judges to give their opinions on what was the law as it then existed.
Lord Campbell:--My Lords, I cannot avoid expressing my satisfaction, that the noble and learned Lord on the woolsack carried into effect his desire to put these questions to the Judges. It was most fit that the opinions of the Judges should be asked on these matters, the settling of which is not a mere matter of speculation; for your Lordships may be called on, in your legislative capacity, to change the law; and before doing so, it is proper that you should be satisfied beyond doubt what the law really is. It is desirable to have such questions argued at the bar, but such a course is not always practicable. Your Lordships have been reminded of one precedent for this proceeding, but there is a still more recent instance; the Judges having been summoned in the case of the Canada Reserves, to express their opinions on what was then the law on that subject. The answers given by the Judges are most highly satisfactory, and will be of the greatest use in the administration of justice.
Lord Cottenham:--My Lords, I fully concur with the opinion now expressed, as to the obligations we owe to the Judges. It is true that they cannot be required to say what would be the construction of a Bill, not in existence as a law at the moment at which the question is put to them; but they may be called on to assist your Lordships, in declaring their opinions upon abstract questions of existing law.
Lord Wynford:--My Lords, I never doubted that your Lordships possess the power to call on the Judges to give their opinions upon questions of existing law, proposed to them as these questions have been. I myself recollect, that when I had the honour to hold the office of Lord Chief Justice of the Court of Common Pleas, I communicated to the House the opinions of the Judges on questions of this sort, framed with reference to the usury laws. Upon the opinion of the Judges thus delivered to the House by me, a Bill was founded, and afterwards passed into a law.
The Lord Chancellor:--My Lords, I entirely concur in the opinion given by my noble and learned friends, as to our right to have the opinions of the Judges on abstract questions of existing law; and I agree that we owe our thanks to the Judges, for the attention and learning with which they have answered the questions now put to them.

REPUBLIC v AGNES DORICE LIUNDI CASE FACTS

READ THIS CASE OF AGNES Doris LIUNDI 1978 How strike her children three and retaining the crown LIUNDI ONLY, then provide ongoing OPINION. Event itself took place at the time of the morning on February 21, 1978. Only after being told her husband when he went to work finding that he returned to the house, and if he is found, he gave it to his house naked. She and their four children at home. After her departure, and she left the car to the city where he bought several bottles of toxic pesticides.When he reached his house, he called all his children four in his room and locked herself in them in, and then he said "we left" those children were asked, "Are we going?" He answered, "we traveled, but there we are going we do not know." kiss those kids and they kissed their mother and then they shook hands as a symbol of offering each other a good trip. After the event, gave each of the cup containing the mixture of toxic and Orange Squash and he took the mixture, which was in a cup and drink. After drinking the mixture all started vomiting, due to vomiting there, he decided to drink iodine. He also drank a bottle pieces Crushed and locked herself in another room.His labors at home and someone called Ramadan another mentioned the name of madam they heard children crying in the bedroom. A little later he opened the door and told madam wash one of those kids who was limited to the other as he was vomiting and diarrhea then went back inside and locked herself in a room alone.She was worshiped by Ramadan with the madam of the house to use the phone to tell her about the problem but he refused.The three other children and they started vomiting and diarrhea and their situation had changed and become worse. Ramadan has informed the neighbors and they came, he went to the next room as he shut and asked if what happens to those children. She says, "Ramadan, please let me die with my children, because the father Crown (ie her husband) does not love me."Both were rushed to hospital and three children were reported to have died, but he and his son succeeded to save great doctors their lives.Medical reports confirmed that the three children had died from drinking poison, which they make drink with their mother.This case is of 1979 to Agnes Doris Liundi, was charged with the offense of killing the Republic for his three children to give drink poison there on February 21, 1978 at his home. Offense of Murder (Murder) showed  the Penal Code (Penal Code) section 196.According to the reading the court during this trial, it was noted that Liundi Doris Agnes married George Liundi in February 1967.After two years of married life with a joy and peace, and suddenly there was not finished misunderstandings and quarrels between the couple. The reason stated cause misunderstanding there is fear that he had been going to her husband is not faithful to him.According to the argument, the defendant was dismissed at home with her husband.As this week before implementing these murder , defendant and her husband attended a ceremony. While at the same party when her husband saw a man who was accused that he had a sexual relationship with his wife, and then the tension they may emerge again and there was serious quarrel between them, ie, the defendant and her husband, and is the lead suspect implement killings on Thursday 21 , in February 1978.It was mentioned at court that, before implementing the killings, defendant wrote a letter all four were on the day of February 21, 1978, and the letters were discovered by the police and the court send as manager. Three letters were written headline that says, "for any charge," and one was a man named is for for Gaudensia mother's name, who is a friend of the defendant.E one of three written headline that says "For anyone involved," read the court as follows:c / o Box 9050DAR ES SALAAM21/2/1978FOR ANY ONE IN CASESI takes my decision is final. I let my husband George disturbed  or tortured or forced in any way because I have that I love.i have takes my children because I do not want to suffer as I have suffered the terrible loneliness. George my husband, he did not know how much I loved you when I was alive. But now you know.FOR POLICE OFFICERPlease do not Take my husband any action because he was innocent.According to him, the police  on 3 April 3, 1978, which is two months after the incident of the murder, the defendant explained the history of his life since childhood. She explained how she lived a life of difficulty and adversity after his mother died when he torture and isolation from his foster mother.The suspect was described married life with her husband, they were happy and peaceful for the past two years since marry, and how his life has changed and marriage faced a crisis endless.He said that the problems began after she demanded that he never raped by the brother of one of his friends, and because the practice was transmit husband sexually transmitted diseases. never tell her husband about the rape incident has long kept secret, but later was judge to tell her husband, which is source of  serious problems in her marriage to leading event on February 21, 1978.While her husband is away at home on the day of February 21, 1978, the defendant was confused and began to remember the early life of suffering and how they were to find themselves having no place to go.she saw her husband as her mother, her father, her brother and her sister and all his life he was dependent on her husband.He decided to buy toxic and return it home, tried to sleep but could not get the sleep and sleepiness did not find a solution, what to do about it, and then he decided to drink the poison.In his own statement, he said:"I was angry and concerned about the problems between me and my husband. I wondered, means these problems have reached the point of frightening amount of my husband to the point of chasing me. i have feeling with the idea that, let  (killing) yourself let sons alive. But then I started to remember my childhood life how they were suffering and loneliness, and I wondered that goes with my sons and they will live my life as a mother and stepfather live. For my husband told me I will never forsake I must not leave my children behind, I decided to enter them takes to room and shut the door. then I say "we left" they asked, "Are we going?" I replied, "we traveled, but there we are going we do not know." Then I kissed and they kissed me back, and shook hands as a symbol of offering each other a good trip. I gave each one a cup with the mixture of toxic and Orange Squash and I took the mixture, which was in a glass and drink. After all the mixed drinks we began vomiting, due to vomiting there, he decided to drink iodine. I also drink a bottle pieces Crushed and locked herself in another room. From time to time, I lost consciousness and did not realize what happened after that "When he was arrested suspect was under the care of a doctor who was known by the name of Dr. Haule, this is a professional psychiatrist who was working at Muhimbili Hospital.bring report at court and also testified at trial. In short, in his opinion dr. Haule said that, when performing the murder incident, the defendant was aware of what he is doing, he knows that she killed her children by feeding poison, but did not know that doing the act is done.In accordance with the provisions of Law 12 and 13 of the penal code that are responsible for the issue of crazy books were as follows:Article 12. Law in the lining anyone that is sane at any time until decision otherwise.Article 13. No one can be considered to be guilty of an offense if his act or omission by the time his act or omission was that he suffers from mental illness and don't knowing making him what he was doing.Dr. Haule in his testimony in its report identified the following tips,For the first time he saw the suspect shortly after the incident of the murder, the defendant was not in a normal condition and did not appear to mind. "I was like talking to a tree." Said dr. Haule. In his view Dr. Haule said, it is possible that the accused was in a state of odd for two weeks or more before the event, and that the defendant was aware of what he is doing when he was watered poison her children, but she did not know that the act is done.He explained about the life time of the marriage the defendant was humanity passing through, how his life and marriage gets disturbances disagreements with her husband. Chance he had of his childhood experiences and how he used to trust and obey her husband. Dr. Haule, was of the opinion that, the act of killing and the defendant decided to kill her children, she believed that he had been ordered by her husband to do so. He said that he read the letter that was written by the defendant prior to the implementation of the killings, but the letters did not change his opinion on the matter.Sometimes Dr. Haule claimed that the defendant did not have a problem with mental trances but later said that the suspect had a problem.In her own words dr. Haule said. "He was insane, and he saw what he did was acceptable practice."Dr. Haule said that, one year after the incident the suspect whose implementation was, the amount of knowledge that the act he was doing was wrong, but still had the treatment.In this case the lawyer who was defending the accused leaned on the crazy defense.Citing Jadeda defense attorney said that, when performing the murder suspect, not knowing that an act is done is done. Marquis returned to the opinion of Dr. Haule.Counsel said that, anyone who is insane can plan step by step as he does implement murder suspect and not knowing if the act was done is done.Attorneys Jadeda he opposed the views of the prosecution that the accused was aware of the act he is doing is wrong.at reading judgment Mr. Justice Makame agreed to issue the defendant had the intent evil (Malice aforethought), especially to watch the actions of the defendant from the preparation, determined by reference to the realization that she watered her children formed it will cause death, and it appears that the defendant was aware of what he is doing, and do not necessarily know that to do so is an offense.However, Mr. Justice Makame he was convinced to believe it because he wrote four letters accused before implementing the killings, which he recorded alongside the act was committed on February 21, 1978. The letters indicated quite clearly that the defendant was aware of what he is doing is wrong.In his own words, Mr. Justice Makame said, "In a letter which read here in court during this trial, the accused testified that her husband lest he be punished or tortured him for an act he did suspect. There was also a request for the police suspect that, lest they bare stage because her husband is innocent. "Venerable Judge Makame went on to say that the idea of ​​innocence and not having communicated her sentence in a letter he wrote defendant, demonstrates clearly that the defendant was aware that the act he is doing is wrong and he wanted to make clear that her husband is not connected in any way with the act had done him a suspect. She knew if her husband in connection with the act had done him a suspect, he will be punished for that offense.Mr. Justice Makame went on to say,"It really dr. Haule said that, let alone suspect he wrote the letters, but he had the opinion that the defendant had no idea what he's doing is wrong. That said, show that that the defendant was largely dependent on her husband, especially in their relationships. If we understand Dr. Hauli well, he probably means that the letters were connected with his faith suspect that he had committed suicide and threatened to kill her children and her husband. Unfortunately, the letter does not measure that defendant had the belief. It was a ahuweni which he hath Dr Hauli. Although the letter stated that the accused was very dependent on her husband, but was still prove that the defendant was aware of the act he is doing is wrong.Also can not seem to connect the details of the letters and insane views expressed by Dr. Haule, he said that he believed the defendant was ordered to kill her husband and her children ajiuwe. "Mr. Justice went on to say,"For me, i see Dr. Haule as an experienced professional with extensive knowledge of mental illness, among other things, also is a member of the Royal College of Psychiatrists and has a Diploma in Psychiatric Medicine he could find in the UK. Much they respect his opinion based on his expertise and I can not resist his testimony. I also agree with the fact that even if the defendant will show trances, but it is accepted if there will be a test emotional (Balance of Probability).Defendant must reveal all the evidence, that no sane is more likely to be stable. Although perhaps less than we've got. In putting this same authority to verify likened to the case include the additional truth Vs Siwato Republic East Africa 974 1959 followed very often linked with MbekuleV-R. 1971, East Africa 479. His Majesty the judge explained in the case of Siwato "The court does not agree with the evidence hospital (Medical Testimony) if / when there is a reason not to do so effective. end of the day is the work of the court to find evidence supporting documents, in doing so, it is my responsibility to look and examine the evidence presented before and including the expert doctor. "Mr. Justice Makame concluding the trial said:"Probably exactly that our laws in regard to the mental trances are outdated and very old, dr. Haule in evidence stated that the expertise of now, the difference between intelligence and not understand self trances in inaction violates. Parliament of the United Republic of wisdom may have to review this in line with laws and bringing in the globalization of medical services. Limits of judicial, including the South East have done so. "The suspect in this case was sentenced to death

Tuesday, December 29, 2015

Director of Public Prosecutions v. Daudi Pete Court of Appeal (Nyalali C.J., Makame and Ramadhani JJ.A.): Criminal Appeal No. 28 of 1990 May 16, 1991

Director of Public Prosecutions v. Daudi Pete Court of Appeal (Nyalali C.J., Makame and Ramadhani JJ.A.): Criminal Appeal No. 28 of 1990 May 16, 1991

Facts and Issues
This appeal by the Director of public Prosecutions concerned the right of bail. The respondent was charged with the offence of robbery with violence c/s 285 and 286 of the Penal Code. The District court of Musoma denied him bail, as the offence was not bailable under s.148 (5)(e) of the Criminal Procedure Act 1985. The respondent appealed to the High Court. The High Court (Mwalusanya J.) held that s.148 (4) and (5) of the Act was unconstitutional for violating several articles of the Constitution concerning Basic Rights, and the doctrine of separation of powers between the Judicature and Legislature, and therefore granted bail. The DPP was aggrieved by the decision, hence this appeal. 


Held:

1. Articles 30(3) and (4) of the Constitution sufficiently confer original jurisdiction upon the High Court to entertain proceedings in respect of actual or threatened violations of the Basic Rights, Freedoms and Duties. Until Parliament legislates under Article 30(4), enforcement of Basic Rights, Freedoms and Duties may be effected under the procedure and practice that is available to the High Court in exercise of its original jurisdiction, depending on the nature of the remedy sought.
2. The High Court has unlimited inherent jurisdiction to adjudicate upon any legal matter unless there is express statutory provision to the contrary. However, as there is a specific provision under the Constitution in Article 30(3) and (4) concerning the enforcement of the Basic Rights and Duties, any proceedings for that purpose must be instituted under that specific article of the Constitution.
3. One of the two situations under which Court may deny or deprive a person of personal liberty under the Constitution is Article 15(a). This may be done only under certain circumstances under a procedure law must prescribe. There was no prescription in s. 148 or elsewhere for the requisite procedure for denial of bail in terms of Article 15(2)(a) of the Constitution.
4. The selective prohibition against bail contained under s. 148(5)(e) of the Criminal Procedure Act is not discriminatory in terms of the Constitution Articles 13(4) and (5) as the accused are denied bail on the basis of their actions or conduct. 
5. The doctrine of separation of powers is fringed when either the Executive or the Legislature takes over the function of the Judicature involving the interpretation of laws and adjudication of rights and duties in disputes either between individual persons or between the state and individual persons. Legislation prohibiting the grant of bail to persons charged with specified offences does not amount to a takeover of judicial functions by the Legislature. 
6. Any legislation that falls within the parameters of article 30 is constitutionally valid, notwithstanding that it may violate basic rights of the individual. But the legislation must fit squarely within the provisions of that Article in that it could be construed as being wholly for "ensuring the interests of defence, public safety, public order'", etc. Thus the provisions of s.148 (5)(e) would be saved if the denial of bail was aimed at the interest of defence, public safety or public order. 
7. The provisions of Section 148(5)(e) was so broad that it encompassed even accused persons who could not reasonably be construed to be dangerous in terms of Article 30(2)(b) of the Constitution.
To the extent that s. 148(5)(e) violates the Constitution, it is declared null and void in terms of article 64(5) of the Constitution. It is struck off the statute book. Appeal dismissed.

CASE:The Managing Director TAWFIQ Bus Service V. Angelo Rwakatale.

The Managing Director TAWFIQ Bus Service V. Angelo Rwakatale, Civil Appeal No. 13/2003 (Court of Appeal of Tanzania - Bukoba Registry)

Decision delivered on: 18/01/2007.

Theme: Proper Service of Summons

JUDGMENT

LUANDA, J.

Having being satisfied that the appellant was duly served with the summons to file a defence, which he did not file within the prescribed time, the Bukoba district court entered an ex parte judgment in favour of the respondent.

Somehow the appellant came to know about this. Through a firm of advocates going by the name of Phillip Law Chambers the appellant filed an application to set aside that judgment. The reason adduced was that he was not served with the aforesaid summons. 

The district Court did not buy his story. The application was dismissed with costs.
Aggrieved by that ruling, hence this appeal. In this appeal Mr. Kabunga learned counsel from Phillip Law Chambers represented the appellant; whereas Mr. Rweyemamu learned advocate from a law firm known as Rweyemamu and Rugaimukamu Advocates represented the respondent.

Mr. Kabunga submitted to the effect that the purported service allegedly to have been affected to the appellant through one Mr. Bashiru was not proper. Mr. Bashiru is neither the appellant nor an agent of the appellant. Further, he went on to say even the affidavit of service of the court broker who affected service was not signed by the said Mr. Bashiru. And further, the signing in a dispatch book allegedly done by Mr. Bashiru was not proper in law. Moreover, the said dispatch book was not produced in court. To buttress up his case he cited Order 5, Rule 12 and Rule 16 of the Civil Procedure Code, Cap. 33 and Mohamed Nassoro v. Ali Mohamed [1991] TLR. 133. He prayed the appeal be allowed with costs and the case to commence afresh.

Responding Mr. Rweyemamu said the service of the summons was proper. First, the appellant had an office in Bukoba. Second, Mr. Bashiru was served twice, i.e. he was served with summons to file a defence and date of judgment. It is Mr. Rweyemamu’s submission that the appellant did not attend the first one but attended the second one for judgment through an advocate.

Turning to dispatch book, Mr. Rweyemamu said that is contained in para 5 of the respondent’s counter affidavit. In any case, he went on to say, the appellant did not deny the existence of Mr. Bashiru and that they did not disclose who is he.

Mr. Rweyemamu maintained that in terms of Order 5, rule 12 of the Civil Procedure Code, Cap. 33, the service was properly affected.

In reply Mr. Kabunga said Mr. Bashiru is not known. This is contained in para 2 of the affidavit of Mr. Mohamed. As to dispatch book he said annexing is not enough; it ought to be tendered.
In refusing to set aside the ex parte judgment entered in favour of the respondent, the learned Principal District Magistrate said, I quote:-

“To start with Mr. Mohamed Seleman the Managing Director of the Tawfiq Bus Service in para 2 of his affidavit states that on 2nd September received information by telephone from a person who did not tell him his name that there is a case against him pending for hearing before Bukoba district Court. The date he mentioned above to have received a Telephone is the day this court issued summons to the defendant to come for judgment on 3/9/2003. The summons was returned with an endorsement of Bashiru Booking Officer. This shows me that this Bashiru is the one who telephoned Mohamed Selemani: We all know that TAWFIQ BUS SERVICE has got their office here at Bukoba”. 

The learned magistrate concluded thus:-

“I am satisfied that here at Bukoba TAWFIQ BUS SERVICE has an office and argent (sic). The argent (sic) was properly served with summons and failed to communicate with the defendant concerning the case in court. I can therefore say …” [Emphasis added]

Under Order 5, Rule 12 of the Civil Procedure Code, Cap.33 Service of summons issued to the defendant may be affected upon the defendant himself or through his agent. But how service is affected? The answer is found in Rule 16 of Order 5 of the same Code. The Rule reads:-

16.Where the serving officer delivers or tenders a copy of the summons to the defendant personally, or to an agent or other person on his behalf, he shall require the signature of the person to whom the copy is so delivered or tendered to an acknowledgment of service endorsed on the Original Summons. [Underscoring Mine]

The question in this appeal is whether there was service of summons to the defendant. The summons returned does not contain any endorsement made by either the appellant himself or his agent to meet the requirement of the above cited Rule. In its stead it is written thus:- 

                         “Signed in dispatch.”

Is that proper in law? Obviously the answer is no. That does not comply with the law. But the respondent contended that the appellant was served through a dispatch, of course through an agent. And the one affected service were court Brokers. But the respondent is the one who maintained in his counter affidavit that the appellant were duly served with summons. He attached with a photocopy of a page of a dispatch book. And in his verification clause he stated that, that fact – which is the contents of para 5 of his affidavit – is true to his best knowledge. Surely that is not correct. That fact ought to be deponed by the Court Broker and not the respondent. The Court Broker was the one to tell us how he served the appellant and why he used the dispatch book, if really he served the appellant and not the respondent. So what he had deponed is hearsay. That goes contrary to the rule of affidavit as is provided for under Order XIX, rule 3(1) of the Civil Procedure Code, Cap. 33 which reads:-

3(1) Affidavits shall be confined to such facts as the deponent is able of his own knowledge to prove, except on interlocutory applications, on which statement of his belief may be admitted:- Provided that the grounds thereof are stated.

From the foregoing therefore, the respondent did not at all discharge that burden that the summons was duly served upon the appellant through Mr. Bashiru. There was no service.

In sum the appeal has merits. It is allowed with costs. The appellant should be served with a copy of summons along with a plaint. Then, the case to proceed to trial.

Order accordingly.

B.M. Luanda
JUDGE

Zimbabwe To Amend Economic Indigenization Law.

Zimbabwe To Amend Economic Indigenization Law

Zimbabwe's Finance Minister Patrick Chinamasa on Thursday announced amendments to the nation's foreign investor law in an effort to stimulate Zimbabwe's stagnant economy. 

The ambiguously-worded Indigenisation and Economic Empowerment Act of 2007 [Chapter 14:33] required all foreign companies to transfer majority ownership into the hands of Zimbabwean citizens. Some feel that President Robert Mugabe's plan to force power into the hands of Zimbabwe's citizens has soured, as other reforms such as land redistribution have largely failed as well. The new amendments loosen the investment requirement, allowing foreign entities to hold majority stock in businesses for up to five years, with an exception of up to 20 years in the energy sector. The amendments have not been well received by everyone in government, however, as Youth, Indigenisation and Economic Empowerment Minister Patrick Zhuwao decried foreign investment as being solely interested in exploiting the nation's natural resources.

Mugabe's presidency has received criticism in other areas as well. In April, the EU General Court upheld sanctions placed on individuals and companies in Zimbabwe, first imposed in 2002, as a result of the EU's concerns regarding pre-election violence and "serious infringements of human rights" committed by the government of Zimbabwe. In January Amnesty International urged Mugabe to address human rights concerns in Zimbabwe and other parts of the African continent. Also in January Zimbabwe's High Court ordered an immediate halt to the demolition of the homes of farmers who were evicted to clear space for a game park envisioned by First Lady Grace Mugabe. In September 2013 the high court ordered the release of 21 activist members of the opposition party that had been detained for over two years.

FEATURES OF A REGISTERED COMPANY, Company Law notices

Simon Goulding,University of East Anglia.

FEATURES OF THE REGISTERED COMPANY
The most substantial differences between a company and a partnership can be
appreciated by an examination of the main features of the modern registered
company.
Incorporation by registration
Incorporation of associations prior to the passing of the Joint Stock Companies
Act 1844 was restricted and it occurred in only two major circumstances: first,
when the Crown granted a royal charter as an act of prerogative power,
conferring corporate status, for example, on trading associations, such as the
South Sea Company or the East India Company; and secondly, via a practice
which occurred more commonly from the late 18th century onwards, when a
statute incorporated a company, usually to construct and run public utilities,
such as gas and water supplies and the canals and railways. The incorporating
statute was a private Act of Parliament and the sections of the Act gave the
company its constitution. For Blackstone, the King’s consent was absolutely
necessary for the creation of a corporate body, hence, the idea that, in
England, incorporation and the creation of a non-natural legal person was a
concession. Blackstone described the above two methods of incorporation as
being with the express consent of the King.
Another less frequently occurring method of incorporation was by
prescription, where the King’s consent was presumed. This was because,
although the members could not show any charter of incorporation, the
corporation had purported to exist as such from a ‘time whereof the memory
of man runneth not to the contrary’ and, therefore, the law was willing to
presume that the charter had been originally granted but subsequently lost.
An example of this type of incorporation was the City of London.
Finally, although not a method of incorporating an association, another
example of where the King’s consent to incorporation had been implicitly
given was where the common law, by custom, recognised that certain
officeholders had a separate legal personality in addition to their own natural
personality. Such offices included bishops, vicars and even the King himself.
On the death of the officeholder, the office and the corporate personality are
transferred to the successor. These are known as ‘corporations sole’ to
distinguish them from incorporated associations, which are known as
‘corporations aggregate’.
Quite apart from these corporations, though, during the 18th century,
there grew up an entirely different form of business association, which,
because of its importance in commercial enterprise, ultimately provided much
of the impetus for reform. This became known as the ‘deed of settlement’
company.
As a result of the difficulties in obtaining corporate status, and because an
unincorporated body of persons could not hold property, except as partners,
and the Bubble Act of 1720 made it illegal to pretend to act as a corporate
body,20 the device of the trust was used, so that money property of a group of
persons associating together for the purposes of business could be put into a
trust and trustees could be appointed to administer it. There was, therefore, a
‘joint stock’ held under trust and, although there was, in fact, no corporation,
all the parties, for all practical purposes, acted as if there were one. Shares in
‘the company’ could be issued to the persons contributing property to the
joint stock and each person would execute a covenant that he would perform
and abide by the terms of the trust. The difference between these
unincorporated companies and partnerships was that the unincorporated
companies enjoyed continuous existence with transmissible and transferable
stock but, unlike partnerships, no individual associate could bind the other
associates or deal with the assets of the association.
The ingenuity of the legal draftsmen in drawing up the trust deeds
brought about a situation where groups of associating persons achieved
corporate status for all practical purposes, so that, as Maitland was able to say:
... in truth and in deed we made corporations without troubling King or
Parliament, though perhaps we said we were doing nothing of the kind ...
and that the trust:
... in effect enabled men to form joint stock companies with limited liability,
until at length the legislature had to give way.21
The legislature did give way in a major and significant way in the Joint Stock
Companies Act 1844, which introduced, for the first time, albeit in a rather
long winded form, the notion of the formation and incorporation of a
company for a commercial purpose by the act of registration by a promoter.
No longer did would-be corporators have to obtain a royal charter or await
the passing of an incorporating statute. Incorporation could be obtained by
the administrative act of registration. The equivalent section in the 1985
Companies Act reads:
Any two or more persons associated for a lawful purpose may, by subscribing
their names to a memorandum of association and otherwise complying with
the requirements of this Act in respect of registration, form an incorporated
company, with or without limited liability.
And, by s 13(3):
From the date of incorporation mentioned in the certificate, the subscribers of
the memorandum, together with such other persons as may from time to time
become members of the company, shall be a body corporate by the name
contained in the memorandum.
The act of registration creates the corporation.22 The drafting of these sections
inherited from previous Companies Acts seems to imply that the body
corporate is simply the aggregate of the subscribers and members and this is
why, in the 19th century, a company is referred to in judgments as ‘they’ or
‘them’. This view is wholly superseded by the view that a company is
separate from, and additional to, the members and is now always referred to
as ‘it’. The former view seems especially strange now that there is the
possibility of companies being formed with a single member.
Among the disadvantages of the old deed of settlement companies was
the difficulty in suing and enforcing judgments against them, since they
essentially remained large partnerships. But, from this very first statute
introducing the notion of incorporation by registration, the option of
continuing to carry on trade in the form of a large partnership was severely
circumscribed to deal with this problem. The 1844 Act required partnerships
of more than 25 persons to register, thus compelling the use of the new form
of business association.23 Thus, there is one readily identifiable legal persona,
which can sue to enforce the rights of the business and which can be sued to
be held accountable for the obligations of the business. The present day
successor to this provision is s 716 of the Companies Act 1985, and the number
of partners has been reduced to 20. There are, however, express exceptions
contained in the section, allowing, for instance, solicitors and accountants to
practise in partnerships of unlimited size.24
Transferable shares
A crucial element in the success of the registered company as a form of
business association is the idea of the transferable share. Shares in a company
are transferable in the manner provided for in the company’s articles.25
Those persons who are originally involved in setting up and running the
business may wish to leave the business or to leave their ‘share’ of it to their
beneficiaries on their death but, usually, all parties, particularly those
remaining involved in the business, will want to affect the company as little as
possible. A serious disadvantage with the partnership is that, unless express
provisions are made in a formal partnership deed as to what should happen
in the event of there being a change in the composition of the partnership,
when any partner dies or wishes to leave or when a new partner is admitted,
the partnership has to be dissolved and re-formed. In respect of the registered
company, in theory, changes of the shareholders can be accomplished
conveniently and with a minimum of disruption to the company’s business.
When a shareholder sells his shares to another person, that person becomes
the new shareholder, and the only involvement of the company is to change
the appropriate entry in the register of members. Thenceforth, the new person
becomes a new member.
Furthermore, because the company is a corporate body and a recognised
legal entity, it survives the death of one, or even all, of the members.26 The
shares of any deceased member are simply transferred to their personal
representatives. The company therefore has a potentially perpetual existence.

In practice, in respect of private companies, the position with regard to the
transmissibility of shares is likely to be complicated by the presence in the
company’s constitution of a clause which states that any member wishing to
sell his or her shares must first offer them to existing members, who have an
option to purchase them or, possibly, are obliged to purchase them. This is an
important restriction for the small family company to include in its
regulations, since the members will obviously wish to retain control over who
comes into the company. Again, this does not directly affect the company but
it can lead to disputes, especially as to the mechanism for the valuation of the
shares. Formerly, there was a requirement in the Companies Acts that, in
order for a company to qualify as a private company, there had to be such a
restriction on the transfer of shares27 but this was removed in the Companies
Act 1980.
These clauses are not usually found in the constitution of public
companies, which do not, in the normal case, have any restrictions on
transfer.28 This reflects the reality that the shares in the public company are an
investment only and that the shareholder has little or no interest in the
business of the company or the identity of the other shareholders.
Limited liability
Corporations, as already described, existed long before the Companies Acts of
the mid-19th century. As early as 1612, in Sutton’s Hospital,29 Coke had stated
that corporations were distinct from their members and, later in the century,
in the case of Edmunds and Tillard v Brown,30 it was recognised, as a result of
this distinction, that the members of a chartered company were not directly
personally liable for the debts and obligations incurred by the company in its
own name and, likewise, nor was the company liable for the members’ debts
and obligations. Hence, the recognition of the important advantage of trading
through the medium of a corporation rather than in a partnership, where each
partner remains both jointly and severally liable for the debts of the business,
or even as a member of the old deed of settlement company, where, since
there never was, in law, a distinct body brought into existence, the members
remained liable for debts incurred.
The position, however, was not so straightforward as this because, as a
case such as Salmon v The Hamborough Company31 shows, the courts were
willing to make orders to the effect that, should a company not be able to pay
a judgment debt, then the company could make ‘calls’ on the members of the
company so that sufficient money was collected. In this way, members could
be made indirectly liable for a proportion of the company’s unpaid debt.
Many charters of incorporation, however, contained an express clause
exempting members from any such liability.
When the legislature first established the registered company in 1844, it
was initially envisaged that members would not escape liability for the debts
of the company but there was a clear and significant difference from the
position that existed with chartered corporations. By s 66 of the 1844 Act, a
creditor had to proceed, first, against the company for the satisfaction of his
debts and, if that did not recover the required amount, the creditor could then
proceed directly against the members of the company personally. Further, a
member would remain under such personal liability for three years. But this
state of affairs did not last long and the hurriedly passed Limited Liability Act
1855 provided that, as long as a number of conditions were satisfied, a
member was absolved from liability for the debts of the company.
So the position now is that members are said to enjoy limited liability,
although the meaning of this phrase and the way it works in practice depends
on what sort of registered company is being considered. Overwhelmingly, the
most popular and important form of company for trading purposes is the
company limited by shares. Here, each share is given a nominal value and a
member of this form of company is liable only up to that full nominal value of
each share he holds or has agreed to purchase. Most shares today are issued to
shareholders on a fully paid up basis, so that, in the event of the company
being wound up insolvent, there is no further liability on the part of the
member, no matter how much the company owes to its creditors. If, however,
the member is holding partly paid shares (which was the case with some
recent Government ‘privatisations’) and the company goes into insolvent
liquidation, then the member will be called upon to pay the outstanding
amount on each share.
The other form of registered company where the members can enjoy
limited liability which can be formed under the Act is the company limited by
guarantee. Here, the company does not issue shares but, instead, the
members each agree to pay a fixed amount should the company be wound up
insolvent. The amount is usually only nominal but, in any event, this form of
company is only really appropriate for charitable or educational purposes,
rather than for commercial ventures.
Limited liability and the registered company are not inevitably and
inextricably linked in English company law. Section 1(2)(c) of the 1985 Act
states that a company can be formed without a limit on the liability of its
32 Companies Act 1985, s 1(2)(b).
Introduction
members. So, in the event of such a company going into insolvent liquidation,
the members could be called upon to make a contribution to the company’s
assets. The advantage of such a company is that there is an exemption from
the disclosure requirements in the Act. However, not surprisingly, this form
of company is not particularly popular and, at present, there are fewer than
4,000 registered at Companies’ House.
Disclosure and formality
A major feature of the law relating to registered companies, which is
immediately apparent to anyone forming and running a company, is the
amount of information about the company which has to be compiled and
disclosed. Thus, the formalities and the publicity associated with the
registered company can be considered disadvantageous and, to some extent,
form a disincentive for a businessman to incorporate his business. The
information required of a sole trader, or of the partners in a normal
partnership, is much less and may be only the information which is required
for the purposes of taxation; moreover, this is not available for public
inspection. But, as regards the registered company, from its inception, the idea
of incorporation by registration was seen as a privilege or concession to
businessmen and, in return for this, there had to be a certain amount of
documentation which had to be open for public inspection and scrutiny. So,
the 1844 Act established the Registrar of Companies, who is still with us today
and whose offices are located in Cardiff. The reasoning behind this
requirement was perhaps best encapsulated by the American judge, Justice
Brandeis, who once said that ‘[s]unlight is the best of disinfectants; electric
light the best policeman’. Furthermore, and specifically in the context of
English company law, the 1973 White Paper on company law reform stated it
was the government’s view that ‘disclosure of information is the best
guarantee of fair dealing and the best antidote to mistrust’.
So, the reasoning behind the disclosure requirements is that fraud and
malpractice are less likely to occur if those in control of corporate assets have
to be specifically identifiable and know they have to disclose what they have
been doing. This means that public disclosure is intended to protect investors
and creditors who either put money into the company or who deal with it.
For public companies which are listed on the Stock Exchange, there is the
additional, extra-legal requirement to disclose information to the Stock
Exchange.
The issue of disclosure in company law has another aspect to it and that is
the disclosure of information by the directors to the members both in and out
of general meeting. The aim here goes beyond that in relation to public
disclosure to the registrar, which is largely concerned with the protection of
investors and creditors, and generally has more to do with ensuring that the
members of the company are satisfied with the efficiency of their management
and are able to scrutinise the conduct of the directors. So, the directors have a
duty to lay the annual accounts and the directors’ and auditors’ reports before
the company in general meeting every year.36 Furthermore, every member of
the company is entitled to receive a copy of these documents not less than 21
days before the date of the meeting at which they are to be laid before the
company.37 Also, a company must keep a register of its members at its
registered office, which is open to inspection not only to any member (free of
charge) but also to any other person (on payment of the prescribed fee).38
Officers of a company who fail to comply with the provisions in respect of
disclosure are likely to have committed a criminal offence and, more
particularly, directors who are in ‘persistent default’ in complying with
disclosure requirements can be disqualified from holding office as a director
for up to five years.39
There has been some trenchant criticism of the disclosure system, in
particular, that the present level of disclosure cannot be justified.40 There has,
indeed, been a steady growth in the volume of documents required from each
company, without, perhaps, a thorough examination of whether the further
disclosure meets the overall aims of the system. In addition, further disclosure
is constantly being required by EC directives. Originally, under the 1844 Act, a
company only had to send a copy of its constitution, a list of members and a
copy of any prospectus to the registrar. In addition, there was a requirement
to present balance sheets to the registrar but, somewhat surprisingly, this
requirement was dropped in the 1856 Act and not re-introduced until 1907.
But the list of members, on the other hand, very important during the time
when members were liable for the company’s debts, has remained. Now, in
addition to the keeping and filing of annual accounts,41 it is necessary to
prepare a directors’ and an auditors’ report, lay them before the general
meeting and deliver them to the registrar,42 along with annual returns,43
containing particulars of the directors, company secretary and the address of

the registered office,44 copies of any special or extraordinary resolutions,45
and valuations of company property.46
Some reform has begun to be made, especially to remove the bureaucratic
burden from private companies. The Companies Act 1989 introduced the
‘elective resolution’, which allows a company, if it passes such a resolution, to
dispense with certain specified formalities required by the 1985 Act. Most
important in this context is the ability of a private company to pass an elective
resolution to dispense with the laying of accounts and reports before the
general meeting. Elective resolutions will be dealt with in greater detail
later. Further auditing relaxations have been introduced for very small
companies. This is part of the move towards the deregulation of small
businesses, which looks set to continue.
A further relaxation which was introduced by the 1989 Act is that public
companies listed on the Stock Exchange may send shareholders a summary
financial statement instead of the full audited accounts.
The advantages of forming a company
Most of the reasons why those running a business would wish to form a
company through which they can run their businesses flow from the above
features, either directly or indirectly. A company is able to enjoy a perpetual
existence, the death or retirement of the members having no necessary effect
on its continued existence, a fact which obviously is not the case with the
partnership. Similarly, a change of members by a transfer of shares can be
accomplished without affecting the company.
The management of the company can be assigned to specific persons, the
directors, so that other members do not have the authority to represent or
legally bind the business with third parties. Obviously, in addition, limited
liability against the trading debts can be enjoyed by those investing in the
business. In a recent empirical study of small businesses, it was discovered
that, overwhelmingly, the most important reason given by the respondents for
the formation of a company was the advantage of limited liability. It must