use irac method

2. Fraser is a director and majority shareholder of BelthamPty Ltd. The company wishes to borrow money from Fin Bank to fund development of a new mobile phone but has no assets to put up as security. Fraser is also a director of Gladiola Ltd, a company that specialisesin corporate cleaning services. Gladiola Ltd owns a commercial property. Fraser arranges from Gladiola to put up the commercial property as security for the loan to BelthamPty Ltd by fixing the common seal to the mortgage document and signing along with Tim, the company secretary (although Tim has never been formally appointed). The new mobile phone is a failure and BelthamPty Ltd goes into liquidation. Fin Bank seeks to repossess the commercial property to recover the loan. This is the first time the other directors of Gladiola Ltd learn about the loan to BelthamPty Ltd and wish to stop the repossession. Advise Fin Bank if they can rely on the indoor management rule