Phillip,Robert,and Mike,are the Directors of Smithfield Warehouse Limited

question 34

Essay

Phillip,Robert,and Mike,are the directors of Smithfield Warehouse Limited.The three directors had decided to increase their warehouse space,and were looking for a suitable property to lease.The bylaws of the corporation with respect to entering a lease required such a document to be ratified by a two-thirds majority of the directors.Each director was scouting for possible properties when Phillip chanced upon a warehouse which appeared to suit their purposes.Phillip entered into a lease with the warehouse property owner on behalf of Smithfield Warehousing Limited,telling the owner that before the lease would be valid that it must be approved by his company.To this the owner of the warehouse agreed.Robert viewed the property the following day,and paid the $1 000 deposit on rent that was required under the lease.Robert paid this out of his own pocket,and then wrote himself a company cheque for reimbursement.At a later meeting,the three brothers decided that a property found in the meantime by Mike was more suitable for their purposes,and informed the warehouse owner that they did not intend to pass a resolution approving the lease,and that the deal was off.The warehouse owner,who was aware that the three brothers represented all the directors,claimed that the company ratified its lease by the actions of the two directors.Discuss the issues raised by this case and render a decision.

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Definitions:

Emergency Response Protocols

A set of guidelines and procedures designed to be implemented in the event of an emergency situation.

Low Chance

A situation or event that is unlikely to occur or has a minimal likelihood of happening.

Low Impact

implies minimal harm or negative effects, often related to environmentally friendly and sustainable practices in businesses and products.

Emergency Response Protocols

Predefined, structured procedures designed to be implemented in case of urgent or crisis situations to protect lives and property.