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it is written under the head limit offers of company secretary
It does not extend to making commercial as opposed to administrative contracts: Re Maidstone Building Provisions (1971). What does this mean ? Plz helpThat they don’t apparently have the authority to place orders for raw materials to be used in production nor to enter sale agreements for the company’s products. They DO have the apparent authority to enter contracts of an administrative nature, but not contracts dealing with the core business of the company
Better?
Thank u mike u truly are a wonderful guy helping others . Can u plz explain the term administrative nature plz
Think about the person in a commercial office – that person does not get involved in production or selling – they are in charge of matters such as filing, opening the post, supervising the bookkeeping staff, organising flights and hotels for directors’ visits to clients and for clients’ visits to the company offices.
They may view themselves as the hub around which the entire company is able freely to move – without them, there would be chaos and nothing would get done
I emphasise that this is the way they may see themselves – this is not necessarily the way others see them!
Ok now on the meaning of “administrative nature”?
Yes thanks
I have another dobut
Enterprise Act 2002 introduced into the Insolvency Act 1986 a ring-fencing mechanism where part of assets which are subject to a floating charge are available to unsecured creditors. The amount ring-fenced is 50% of the first £10,000, plus 20% of the rest up to a maximum ring-fenced fund of £600,000.Plz mike explain this with help of an example
If the amount of the secured loan is a) $8,000 b) $30,000 c) $1,000,000 then the amounts available for the unsecured creditors would be respectively:
a) $ 4,000
b) $ 9,000 (50% x $10,000 + 20% x $20,000)
c) $125,000 (50% x $10,000 + 20% x $600,000)although I’m not 100% certain about that last one!
The wording “…… and 20% of the excess up to a maximum of $600,000” can be interpreted in at least 4 different ways!
Incidentally, for “$” read “£” throughout
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