MMC Pty Ltd operates a designer jeans tailoring business. Christina is the managing director,

Louise, a director and Brittney is a non-executive director. Christina looks after the accounts

while Louise designs the jeans. Brittney on the other hand does not participate in the

management but she helps time to time in designing the jeans. Christina, Louise and

Brittney have agreed that all company transactions involving more than $2,000 will only be

made with the approval of both directors.

Brittney leased a new car in the company's name from Zipper Cars Ltd at the cost of $7,000.

When the representative asked for contact details, Brittney showed her company ID that

described her as a "managing director". Brittney did not tell the other directors about the

transaction. Brittney uses the vehicle for her own purposes and to drive to work each day.

When the first account from Zipper Cars arrives, MMC Pty Ltd refuses to pay saying that the

company is not liable for the debt.

Advise MMC Pty Ltd whether this is correct under the Corporations Act t by examining whether:

1. Brittney had the actual authority to rent the car or

2. Brittney had the apparent authority to rent the car

Would your answer be different if Brittney was held out to MMC Pty Ltd as the managing director of the company?