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In Re Brazilian Rubber Plantations & Estates Ltd, [3] a multinational rubber company made substantial losses after foolhardy speculative investments in Brazil. It transpired that the directors had no experience in the business of rubber plantations and few qualifications or personal qualities to justify their lofty posts within the company.
In Re Brazilian Rubber Plantations and Estates Ltd,™ a prospectus issued as part of a capital raising exercise to finance the purchase of a plantation in Brazil contained material errors in core information including
This is established in re Brazilian rubber plantation and estates ltd (1911) when Justice Jonathan Parker suggests that directors do this so they can properly carry out their duties.
It is the purpose of this article to examine this law, particularly the practical application of it as it emerges from the cases, to examine possible methods of reform, and to attempt a general evaluation of the efficacy of sanctions for negligence as a form of protection for investors.
Re: Brazilian Rubber Plantations and Estates (1911) Company made substantial losses after foolhardy speculative investments in Brazil. Directors had no experience in the business of rubber plantations and few qualifications or personal qualities to justify their lofty posts within the company.
In the English decision of In re Brazilian Rubber Plantations and Estates Limited10 (‘Brazilian Rubber’), widely regarded as the founding case for the modern duty of care and skill, the court (Chancery Division) held that a director should act with the degree of care as could be reasonably expected of him, taking into consideration his ...
These men were held not liable for losses sustained in a disas-trous speculation in rubber plantations in Brazil.