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Facts: The articles stated that directors were entitled to be paid £1,000 on
taking office.
Held: The contract was implied from the directors’ action in taking office.
The provision in the articles was merely evidence of that separate
contract.Sir as we know that articles bind company to members, members to company and member to members. It does not bind company to 3rd parties. So here how articles are binding with director?
They’re not
It’s a contract by conduct with implicit remuneration for services rendered
Now, the question is … how much remuneration?
Let’s look at the Articles to see if there may just be some indication about what the company thinks might be a reasonable level of remuneration … Ah yes, here it is suggested that 1,000 GBP should be paid so that’s a reasonable guide as to how much was implicit within this contract by conduct
OK?
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