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Garden Supplies & Services Ltd is a private company engaged in the sale of outdoor garden equipment as well as providing landscaping services. The

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Garden Supplies & Services Ltd is a private company engaged in the sale of outdoor garden equipment as well as providing landscaping services. The company has three directors, Bert, Billy and Beverly, who are also major shareholders. Among themselves they held ninety percent (90%) of the shares, with Tom, a minority shareholder owning the remaining ten percent (10%). Bert, the Managing Director was actively engaged in the overall operations of the company, managing its day to day affairs. However the board has refused to pay him, insisting that he was not entitled to remuneration. Bert who was so upset about the matter has decided that he would stop working until the issue of payment has been settled. Billy, to the knowledge of the other directors but without their express authority acted as the managing director (in the absence of Bert) in concluding a landscaping contract with one of the large hotels. He engaged the services of an attorney to prepare the legal documentation involved in the contract. The company refused to pay the attorney's fees on the ground that Billy who acted as managing director had no actual or apparent authority to enter a contract with the attorney. Bert, Billy and Beverly had also negotiated a contract in the name of the company and later took the contract for themselves personally. They passed a resolution in the general meeting that the company was not interested in the contract. Tom, the minority shareholder is furious and is contemplating taking legal action on behalf of the company. Advise the company on all the issues arising from this case. (30 marks) #Suipping Tool Take SS& Share Link

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