PART B Question 3 Transparent Corporate Governance Pty Co. Ltd (TCG) is a consulting company to public companies and large proprietary companies, and A. acts as managing director, though he has never actually been formally appointed to that position. A is, however, described in the ASIC return as the managing director. One day, A takes an external telephone call from a retail outlet asking for a TCG company order number for a retail purchase made by B. A replied that B was the company's Principal Finance officer, and said "he'll see you right", transferring that call to B's office. Later it transpired that B has purchased a widescreen plasma TV for $9999, and it was delivered to his home. The contract was made by B on behalf of TCG. B has acted as Principal Finance officer of TCG for some time, but has never actually formally been appointed as such. The Constitution of TCG contains a clause which requires a board resolution for the purchase of goods valued at more than $8000, but no resolution has been passed by the board for the plasma TV. B no longer resides at his previous home address, and his spouse says "Good riddance to him and his widescreen TV." The whereabouts of B and the plasma widescreen TV are currently unknown. Discuss whether TCG is liable for the cost of the widescreen plasma TV. [12 marks 30 minutes]