Easy supply changed management

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Question

Mark Eshaka is the executive director of Easy Supply Chain Management Pty Ltd, an established company founded in Brisbane in 1996. The company has four members/shareholders, including Mark, each owning twenty-five percent of the company's shares. According to Easy Supply's constitution, all loan contracts must bear the signatures of at least two directors to be valid.

Mark plans to retire in 2024. Having been with the company since its inception, he believes he deserves a reward for his years of faithful service. Mark visits a yacht dealership in Nelson Bay and orders a boat worth $400,000, signing the contract as a director of Easy Supply Chain

Management Pty Ltd. When the boat is delivered and the dealer sends the invoice to Easy Supply Chain Management Pty Ltd, the board of directors is livid and refuses to pay for the boat. They also want to take legal action against Mark. The boat dealer threatens to sue Easy Supply if the boat is not paid for.

Is Easy Supply Changed Management Pty Ltd legally obliged to pay for the boat?

Reference no: EM133804010

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