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ABC Company Lid. is a private company engaged in the manufacturing of garments. It has four directors, Tom, Betty, Paul and James. The company has
ABC Company Lid. is a private company engaged in the manufacturing of garments. It has four directors, Tom, Betty, Paul and James. The company has monthly board meetings, which Tom is only able to attend every four months because he resides abroad. Tom an accountant and signatory to the company accounts signed blank cheques and left them with the company's accountant any time he is around. The accountant has embezzled $20 million and has absconded. ABC Company entered into a contract with Equip Lid. for the supply of equipment to their new production centre. Paul who is a director and major shareholder of Equip Lid did not disclose his interest in Equip at the time the board took the decision to enter into the contract. Balvin, the secretary of ABC Company Lid made reservations at Holiday Inn representing that the rooms were required to accommodate some of the company customers attending a workshop put on by the company. He used the rooms for his personal purposes. Port Lid. has refused to pay Holiday Inn. Advise Holiday Inn on whether they can recover the cost from Port Lid. ABC Company Lid., 17 days prior to its annual general meeting sent out notices to its members. Andrew a minority shareholder did not receive notice of the meeting and did not attend. At the meeting the company passed a resolution to issue bonus shares instead in place of dividends which was not stated in the notice of meeting and the resolution passed. Andrew seeks your advice on the validity of the meeting. The articles of ABC contained a power to appoint a managing director but this was never done. One of the directors of the company to the knowledge but without the express authority of the board of directors acted as if he was the managing director in finding supplier of materials and in engaging the services of another company to do fencing jobs. ABC Company Lid, has refused to pay the company that did the fencing job and has also refused to pay the director for his services as managing director Advise the supplier of materials and the "managing director
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