The directors of Ardvaark Ltd instructed the company's stockbroker to byy 10,000 shares in BHP Billiton...

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The directors of Ardvaark Ltd instructed the company's stockbroker to byy 10,000 shares in BHP Billiton Ltd on the company's behalf. After the purchase was finalised, BHP Billiton Ltd sent Ardvaark Ltd a bankirig form to enable BHP Billiton dividends to be credited directly into a bank account that Ardvaark Ltd nominated. The banking form had to be signed by eithertwo directors of a director and the company secretary as follows: Signature of Director Signature Director/Secretary (strike out whichever is inapplicable) Instead of inserting Ardvaark Ltd's bank account details on the form, Anthony, Ardvaark Ltd's Secretary, filled in his own bank account details and signed the form as the company's secretary, Anthony's wife, despite not being an Ardvaark Ltd director, signed as director. Anthony then posted the banking form to BHP Billiton Ltd. Several weeks later, BHP Billiton dividends were credited to Anthony's account. Not long afterwards Anthony resigned as secretary and left Australia without telling anyone where he had gone. About 18 months later, Ardvaark Ltd's internal auditor noticed that its BHP Billiton dividends, had not been deposited into Ardvaark Ltd's bank account and reported the matter to the company's managing director, who discovered what Anthony had done When informed about this, BHP Billiton Ltd agreed to credit Ardvaark Ltd's bank account for future dividend payments, but would not reimburse Ardvaark Ltd for the dividends that had beendeposited into Anthony's bank account previously. Explain whether Ardvaark Ltd may válidly argue that it did not sign the bank account form that Anthony sent to BHP Billiton Ltd. The directors of Ardvaark Ltd instructed the company's stockbroker to byy 10,000 shares in BHP Billiton Ltd on the company's behalf. After the purchase was finalised, BHP Billiton Ltd sent Ardvaark Ltd a bankirig form to enable BHP Billiton dividends to be credited directly into a bank account that Ardvaark Ltd nominated. The banking form had to be signed by eithertwo directors of a director and the company secretary as follows: Signature of Director Signature Director/Secretary (strike out whichever is inapplicable) Instead of inserting Ardvaark Ltd's bank account details on the form, Anthony, Ardvaark Ltd's Secretary, filled in his own bank account details and signed the form as the company's secretary, Anthony's wife, despite not being an Ardvaark Ltd director, signed as director. Anthony then posted the banking form to BHP Billiton Ltd. Several weeks later, BHP Billiton dividends were credited to Anthony's account. Not long afterwards Anthony resigned as secretary and left Australia without telling anyone where he had gone. About 18 months later, Ardvaark Ltd's internal auditor noticed that its BHP Billiton dividends, had not been deposited into Ardvaark Ltd's bank account and reported the matter to the company's managing director, who discovered what Anthony had done When informed about this, BHP Billiton Ltd agreed to credit Ardvaark Ltd's bank account for future dividend payments, but would not reimburse Ardvaark Ltd for the dividends that had beendeposited into Anthony's bank account previously. Explain whether Ardvaark Ltd may válidly argue that it did not sign the bank account form that Anthony sent to BHP Billiton Ltd.

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In this situation Ardvaark Ltd may have grounds to argue that it did not validly sign the bank accou... View the full answer