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Problem
It has recently come to light that one of the directors of Woodpecker, Lettie, has been looking into acquiring some vehicles to replace some older ones for Woodpecker. Her mother owns a car dealership. Her mother has offered to sell Woodpecker a fleet of new cars for £200 000. Lettie has obtained quotes from several other dealerships and is convinces that her mother is offering the best deal. Is there anything that Lettie needs to do before she goes ahead and purchases these vehicles on behalf of Woodpecker?
If Woodpecker eventually buy these vehicles, they need to take out a loan from XYZ Bank. Assume that Lettie did commit Woodpecker to a loan for £200 000. Will woodpecker be bound to pay this?
Lettie in another incident was offered to undertake some work in her private capacity by one of Woodpecker's longstanding clients. She decides to take this work on and makes a profit of £12 000 from this job.
Will it be possible to remove Lettie as a director?
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