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I II II II II ||| Bob is a non-executive director of JD Hi-Fi (JD) an electrical goods retailer. At a December 2021 board meeting
I" II" II" II" II" ||\""| Bob is a non-executive director of JD Hi-Fi (JD) an electrical goods retailer. At a December 2021 board meeting attended by the managing director (Linda), Bob was asked to arrange purchase of stock of the new iPhone 13 from Apple Wholesaler (AW). The value of the deal is $100,000. JD's constitution states that all contracts for purchases over $10,000 must be signed by 3 directors and the company secretary. However, this contract was signed by only Bob and a senior accountant named Gene who pretended, with the knowledge of Linda and Bob, to be a director. At the time the contract was signed, the distributing manager of Aw said he was very surprised because none of the previous 50 deals between the companies was for any more than $5,000; his suspicion was increased by the fact he had never met or even heard of Gene. A week after the contract was signed, Louise, the company secretary, decided not to proceed with the deal and refused to approve the purchase after discovering that Linda mislead the distributing manager of Aw. Management at AW is not happy at all. Requhed a) Advise whether the $100,000 deal is enforceable by AW against JD under the Corporations Act 2001 (0th)
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