In the realm of corporate governance, the case of Technovaa Packaging Industries (Pty) Ltd v Main Street 1051 (Pty) Ltd 2025 JDR 0965 (KZP) serves as a reminder of the importance of proper authorisation in corporate agreements. This case underscores the complexities and potential pitfalls associated with unauthorised delegation and the concept of ostensible authority.
A resolution in favour of one of three trustees by which he was ‘authorised to sign the necessary documentation’ could not be construed as a general authority to enter into contracts. In the context it was held that this resolution only authorised the purchase of a farm and the authorised signatory was not entitled to
The fact that someone works as, say, a branch manager or agent for a bank does not mean they have express or implied authority to bind the bank to a transaction of any kind. They can only bind the bank to transactions which are the ordinary kind of business done by the branch manager or