Westy Pty Ltdis a highly successful company located in Melbourne.It imports electricity generators from China.Francis Zhang is one of four directors of the company.Over time Francis has assumed the title of Managing Director.He uses the title on his business cards, his office door, his car parking space in the company car park and even on his brief case.In fact his secretary answers Francis' phone as, "Francis Zhang, Managing Director," and the chairman of the board has become quite used to introducing Francis to visitors to the company offices as 'our Managing Director.'

Francis has decided, entirely of his own volition, that the company should upgrade the directors' vehicles.At present they use prestige Holdens, but Francis has decided they should use imported European vehicles.Two weeks ago, Francis visited the local distributor of BMWs and ordered four top of the range models, one for each of the four directors of Westy P/L, including himself.

The distributor has sent their invoice for the cars and it is due to be presented for payment to the board at today's board meeting.The chairman of the board has made it clear that the company will not be paying for the vehicles, as Francis has never formally been appointed Managing Director of the company and as such Francis had no authority to purchase the vehicles.It is likely the other directors ( except Francis) will agree with the chairman.

In your capacity as company secretary you are likely to be called on at the board meeting to advise the board as to whether or not the company is liable to pay for the four BMWs. Advise the board accordingly.Be sure to use authorities, both common law and statute.

PLEASE USE THIS MODEL IRAC (issue, rule of law, application to the facts, conclusion)