Waiver clause. That clause in the prospectus of a joint stock company, or in the application for its shares, which, as in Greenwood v. Leather Shod Wheel Co., (1900) 1 Ch 421 (where it was held bad), waives claims of shareholders against directors for damages caused by the issue of a prospectus not disclosing contracts as required by s. 38 of the Companies Act, 1867. An honest waiver clause protected the defendant in Calthorpe v. Tait, 1906, AC 24. These waivers are rendered void by s. 35 (2) of the Companies Act, 1929, replacing s. 81 (4) of the Companies (Consolidation) Act, 1908. Consult buckley on the Companies Acts
View Judgments Citing this Phrase