1924 (7) TMI 3

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....deration paid by the assignee was credited in the accounts of the corporation. 2. The Articles of Association provided that there shall be a manager of the company whose duty shall be to conduct the whole business of the company and to perform all such works and services as may be necessary to carry on the said company or its branches and such as are usually performed by the manager of a Banking Company. They further provided that the said manager shall be authorised to advance loans to the best advantage of the company of such amounts and to expend such sums to keep the bank, its branches and establishment going, as may be prescribed by the Directors from time to time. B. Ram Gharib Lal was appointed the Manager of the company by the Ar....

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....usiness of the company, their act is ultra vires and void, as the company would not be bound by any act done by the Directors for objects which the company has no power to entertain. But not only do the acts of the Directors bind the company, when done within the scope of their authority, but also where the acts of the Directors, however irregular, belong to a class of acts, which is authorised by the constitution of the company. A company is bound by its dealings with strangers, who act bona fide with the company; for, says Grant, a company is liable for acts done by its Directors, even though unauthorised by it, provided such acts are within the apparent authority of the Directors and not ultra vires The Ashbury Railway Carriage & Iron Co....

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....nner in which that power is to be exercised and it does not prescribe a sale of property, where such a sale falls within the ordinary business of the company. A company, which deals in Banking business, has, for instance, the power not only to lend money but to sell any decree, which it may obtain in lieu of the debts advanced as a means of realising those debts. The sales in the present case were irregular, because they do not appear to have been; made with the sanction of the Directors, as required by the power of attorney which conferred the power of sale. But if any damage has accrued to the company by reason of the Manager having acted beyond his authority in the ordinary discharge of his duties, the remedy of the company is against su....