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If you are a director, because you are a director, you have the apparent authority to enter into contracts in the name of the company of which you are a director
Ok now?
As a director of a company, do you have any authority to enter contracts that will bind the company?
Answer that one for me before I go further
coz u have the power, sir u are making me hard
pls just tell me the meaning sir?You say you have the power! Who has given you that power? You think that you have the authority just because you are a director?
Well, there’s your answer! You have the APPARENT authority just because you are a director
Is that better?
its like this a teacher can punish a student just coz she has the power to do it
am I confused here?It’s extremely rare that a teacher would punish a student – but there are sometimes methods that teachers adopt to try to persuade their students to think for themselves rather than expecting to be spoon fed
Because you are an ACCA student, it’s fair for me to assume that you have a degree of intelligence. So I could say that you are “apparently (or ostensibly) intelligent”
Now, in the case of a director, they do have apparent authority but it’s possible that the company has specifically restricted that director’s powers. So although he / she may have apparent authority, in fact they don’t have any authority at all
Applying that to the teacher / student scenario, it’s fair for me to assume that you have an apparent, ostensible level of intelligence. But, although that might seem to be the case, it may be proved otherwise. Similarly, a director with apparent authority may be shown to have no authority at all
Is that better?
thats sounds good, I deliberately asked u the teacher student example
I knew u would explain it to me in proper way
thnks I understood now 🙂Of course he / she does. They have apparent, ostensible authority so can and do bind the company in contract. And it’s no good the company trying to get out of a contract that the company has been entered into by a director acting beyond their actual authority.
“So far as an innocent third party is concerned, nothing in a company’s constitution shall be deemed to restrict the power of a director to enter into a contract validly”
And you reckon a director has no authority?????!!!!!
Think again!
Sir , i just have a doubt, my next stage im gonna do f7 f8 f9 p2, do u think its possible to do all four of these?
is p2 relevant to any of f7 f8 f9??
P2 is a HUGE step up from F7 – it’s still corporate reporting but it’s immense! Think of university final exams compared with your exams in the final year of high school
I have known students that have done F7 and P2 in the same sitting – I even know one that passed P2 and failed F7 in the same sitting. But four exams in one session is a big ask. Maybe don’t punish yourself so much and cut it back to just three
With 4 exam sittings in a year, you won’t lose much in terms of time taken to qualify and you’ll be able to spread the effort more efficiently and effectively over just three papers
But, of course, the final decision is yours!
I mean, I can be a full time nerd and wrap up the four papers.. What I thought was finish up f7 f8 f9 p2.. then I’ll be working as a Audit trainer next Jan. Assuming after completeing 10 papers, only four left to do?
I think P1 would be a better choice. And make sure that, in your preparation for P1, you do the Ethics Module
So would u recommend a person to do p2 if he completed f7?
whats ethics module?
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