Computer Paper Works Ltd has one company secretary, Vincent. The company has been a consistent advertiser on Channel 11, a private television broadcaster. This advertising contract was originally signed by Vincent and he organises new advertising via emails to Channel 11.

Vincent has been given free rein with much of the contracting for Computer Paper Works. Vincent enters a contract for sponsorship by the company of his football team in the national competition. The sponsorship amounts to $100,000 for each of the next three seasons. The board has not discussed this and when they find out they are amazed at the size of the companys commitment.

Channel 11 has not been paid by the company for the advertising conducted last month during prime time. Upon reviewing their contract with Computer Paper Works, the in-house legal counsel for Channel 11 notices that only Vincents signature appears. The Channel makes it a policy of ensuring that a director signs company advertising contracts with them.

Advise Vincent whether he is liable for any of these contracts. Could Computer Paper Works avoid the sponsorship contract if they had a company policy of requiring all amounts of expenditure over $50,000 to have board approval?

Please provide the best answer as soon as possible. Thanks