UNIT - COMPANY LAW

Ukulima limited created a position of a managing director, but no one was appointed to the position. Brian Bundi, a director, with the knowledge of the other directors, purported to act as the Managing Director and hired Mjengo Limited to do some work for the company. Mjengo Company Limited has now demanded for payment for the work done but Ukulima Limited has refused to pay stating that Brian Bundi has no authority to act on company's behalf.

Advise Mjengo limited on the legal position