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Big Ben Seventy-One Limited (BBSOL or the Company) core business is the selling and buying of grain. The articles of association for BBSOL have an
Big Ben Seventy-One Limited ("BBSOL" or the "Company") core business is the selling and buying of grain. The articles of association for BBSOL have an express provision on this. To exploit an opportunity with a renowned NGO which came up unexpectedly Beatrice ordered a consignment of laptops and other supporting electronics, worth ZMW 500,000 in the company name on credit from Sweet Deals Zambia Limited ("SDZL"). Upon informing the other directors, Daniel and Emma, who are also shareholders of BBSOL, the proposal by Beatrice was rejected on the basis that the market value of the laptops ordered was around ZMW 250,000. SDZL is now claiming for payment of ZMW 500,000 for the laptops supplied. Question: The Company has invited you to advise it (with the aid of the provisions of the Companies Act) on whether: (a) BBSOL is bound to pay for the order placed by Beatrice; and (b) there are any consequences for Beatrice's action. Site from the company act 2017
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