Question 2

Mr. Miyagee is a member of the board of directors of a public company. Mr. Miyagee proposed that the company enters into a contract with Mr. Karate Kid, for the purpose of providing administration services. Although the board of directors rejected the proposed collaboration with Mr. Karate Kid, Mr. Miyagee purported to enter into a contract on behalf of the company with Mr. Karate Kid. Mr. Karate Kid performed the agreed services, but the company failed to pay him.

Required:

(a) Explain what is a public company and the Board Of Directors

(b) Identify the liability of the company as against Mr. Karate Kid

(c) Identify the liability of Mr. Miyagee as against the company

(d) Identify the liability of Mr. Miyagee as against Mr. Karate Kid