victoriawinter
Jan 24, 2011, 10:07 PM
Until he set up his own computer business, William was the company secretary of
Cosmopolitan Holdings and Investments Ltd. On 10 January 2009, Arthur, managing
Director of Cosmopolitan invited William to sell office equipment worth $100,000 to the
Company. 'I used to work for Cosmopolitan,' said William, 'don't you need board approval?'
Arthur nodded. William delivered all the equipment that afternoon. The Board of
Cosmopolitan became aware of this transaction two days later and forthwith proceeded to
Dismiss Arthur. Cosmopolitan denies liability because Arthur had no authority from the
Directors. Is Cosmopolitan liable
Cosmopolitan Holdings and Investments Ltd. On 10 January 2009, Arthur, managing
Director of Cosmopolitan invited William to sell office equipment worth $100,000 to the
Company. 'I used to work for Cosmopolitan,' said William, 'don't you need board approval?'
Arthur nodded. William delivered all the equipment that afternoon. The Board of
Cosmopolitan became aware of this transaction two days later and forthwith proceeded to
Dismiss Arthur. Cosmopolitan denies liability because Arthur had no authority from the
Directors. Is Cosmopolitan liable