a) Ukulima Limited created the position of managing director but no one was appointed to the position.
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Question:
a) Ukulima Limited created the position of managing director but no one was appointed to
the position. Brian Bundi, a director, with the knowledge of the other directors, purported
to act as the Managing Director and hired Mjengo Limited to do some work for the
company. Mjengo Limited has now demanded for payment for the work done but
Ukulima Limited has refused to pay stating that Brian Bundi had no authority to act on the
company's behalf.
Advise Mjengo Limited on the legal position.
(8 marks)
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