Mr. Davi a credit manager of UPA Bank, lends GH100,000.00 to Asesewaa Company Limited, to be repaid over a five-year period. However, according to the Constitution of UPA Bank, a Credit Manager requires authorisation from the Board of Directors before he or she is able to grant a loan in excess of GH50,000.00. A month after the disbursement of the loan to Asesewaa Company Limited, the Head of Legal and Corporate Affairs of UPA Bank writes to Asesewaa Company Limited to recall the loan, indicating that the Credit Manager did not have the authority to grant the loan. Asesewaa Company Limited has come to see you, a crack company law student, for advice.

Discuss the company law issue(s) and advise Asesewaa and Company Limited