Could you explain what are the powers of individual directors? 1.My confusion is that power is usually granted to the board and not to individual directors and thus individual directors cannot bind the firm.
2. But what will happen if an individual makes a contract on behalf of the company and the third party genuinely believed that the director has the authority to do so. – Will the company or the individual director liable?
The company is liable … a director has the apparent authority to enter into transactions on behalf of the company so, as long as the third party does NOT know that the director lacks authority, the company will be liable
OK?
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