Corporate Matters — January 2014: directors’ actual and apparent authority to bind company
Parties to a contract need to be confident that the directors of the company they are dealing with have authority to bind the company. Authority may be ‘actual’ or ‘apparent’. What does this mean in practice and what is the position where the director has no authority?
In LNOC Ltd v Watford Association Football Club Ltd, the de facto managing director and ultimate owner of Watford, one Mr Bassini, had entered into finance agreements with LNOC on behalf of the company. When the loans were not repaid, LNOC commenced proceedings. Watford’s defence was primarily that Bassini had no authority to bind the company.
The court considered separately the issues of actual authority and apparent authority…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
The courts have decided a number of high-profile cases this summer in which retailers have been involved in intellectual property disputes.
Southend-On-Sea Borough Council v Armour is a tenancy repossession case in which the tenant invoked a successful article 8 defence.
Analysis from The Lawyer
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.
New EU rules and lawyers’ increased comfort with digital formats are sparking a sea-change in the way law firms manage their documents