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5/11/2011 Usual authority Usual or customary authority: Managing directors(Table A reg 109):Biggerstaffv Rowatt's Wharf Ltd [1896]2 Ch 93;Hely-Hutchison v Brayhead;Freeman Lockyer v Buckhurst Park Properties Individual director:Re Marseilles Extension Railway Co (1871)LR 7 Ch App 161 at 168;Mitchell Hobbs (UK)Ltd v Mill [1996]2 BCLC 102;Qualihold Investments Ltd v Bylax Investments Ltd [1991]2 HKC 589 at 593 Company secretary:Panaroma Developments(Guildford) Ltd v Fidelis Furnishing Fabrics Ltd [1971]2 QS 711 Relationship with actual authority and apparent authority Freeman Lockyer v Buckhurst Park Properties (Mangal)Ltd [1964]1 All ER 630 Company had 4 directors. One of the directors,Kapoor,was not formally appointed as MD but acted in that capacity with acquiescence by other directors(though the directors did not communicate their consent to each other nor to Kapoor). Kapoor employed architects purportedly on behalf of company. Did the contract bind the company? ·lfso,on what basis? 65/11/2011 5 9 Usual authority • Usual or customary authority:  Managing directors (Table A reg 109): Biggerstaff v Rowatt’s Wharf Ltd [1896] 2 Ch 93; Hely-Hutchison v Brayhead; Freeman & Lockyer v Buckhurst Park Properties  Individual director: Re Marseilles Extension Railway Co (1871) LR 7 Ch App 161 at 168; Mitchell & Hobbs (UK) Ltd v Mill [1996] 2 BCLC 102; Qualihold Investments Ltd v Bylax Investments Ltd [1991] 2 HKC 589 at 593  Company secretary: Panaroma Developments (Guildford) Ltd v Fidelis Furnishing Fabrics Ltd [1971] 2 QS 711 • Relationship with actual authority and apparent authority 10 Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 1 All ER 630 • Company had 4 directors. • One of the directors, Kapoor, was not formally appointed as MD but acted in that capacity with acquiescence by other directors (though the directors did not communicate their consent to each other nor to Kapoor). • Kapoor employed architects purportedly on behalf of company. • Did the contract bind the company? • If so, on what basis?
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