ABSTRACT
The subscribing shareholders, although they may be party to the illegality, are not in pari delicto with the promoters, who therefore cannot be heard to raise as a defence their own neglect to register the company. There are certain recognised circumstances when a party, although particeps criminis, will be considered not to be in pari delicto and will be allowed to recover. Where a contract is illegal as contravening a statute passed for the protection of persons of a certain class, if the plaintiff is a member of that class he is not in pari in pari delicto with the other contracting party. The non in pari delicto exception has also been applied in cases concerning the violation of legislation which seeks to protect tenants. The exception of oppression has also been used to give relief to friends or relatives who have been pressured into an illegal agreement to stifle a prosecution.
