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Question 9

Chu, a suitably qualified person, was appointed as the company secretary of Do plc. Since his appointment, Chu has entered into the following contracts in the name of Do plc:

(a) an extremely expensive, long-term contract with Ex plc for the maintenance of Do plc’s photocopiers;

(b) an agreement to hire a car from Far plc which Chu used for his own, non-business related purposes;

(c) an agreement with Gro plc to landscape the garden of his, Chu’s, personal house.

The directors of Do plc have only recently become aware of these contracts.

Required:

In the context of company law, with specific regard to the authority of company secretaries, advise the directors of Do plc whether the above agreements are binding on the company.