Elizabeth, a company director, and her daughter go to a bank to borrow a sum of $200,000 on behalf of her company. Elizabeth introduces herself as the Managing Director although she has not actually been appointed as such, and her daughter as the Company Secretary. They are successful in getting the money and go on a long holiday in France. The company board finds out about the loan and tells the bank that Elizabeth had no authority to act in that way. The Bank demands that the company repay the loan.

Discuss whether the company is liable or if the Bank as the outsider is liable or protected.