ACCA考试

【分析解答题】Dan is the managing director ofAce Pte LtD、He entered into a contract on behalf of the company to buy a shophouse in a prime location in the city centre for a rather high price of $4 m. The other directors were not happy withDan’s action because the price was too high and they felt it was not a good time to buy property. In addition,Article 58 of the articles of association of the company, states:‘The managing director shall have authority to enter into, on behalf of the company, agreements for the purchase of property provided that the purchase price per agreement shall not exceed $500,000. Where the purchase price of a proposed agreement exceeds $500,000, the prior approval of the board of directors is requireD、’Required:Advise whetherAce Pte Ltd is bound by the purchase agreement. (10 marks)
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