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Kingsley was the chairman of Bill Ltd. To the knowledge, and with the acquiescence, of Bill's board he also acted as the company's managing director. Bill Ltd held shares in another company, Banky Electronics Ltd. To encourage Mr. Antwi to inject funds into Banky Electronics Ltd, Kingsley, in his capacity as chairman of Bill ltd, wrote to him undertaking to indemnify him for any loss he might incur as a result of lending money to Banky ltd or guaranteeing any loan made to Banky ltd. In reliance on this undertaking Mr Antwi advanced 45,000 pounds to Banky ltd. Subsequently, Banky Ltd went into liquidation and Mr. Antwi had to pay off a company loan which he had guaranteed. Mr. Antwi sought to recover that sum, and the GHc 45000 lent to Banky ltd, from Bill ltd. He relied on the terms of Bill Ltd.'s letter of indemnity and this raised the question of Kingsley's authority to bind the company.
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