Mary was the Secretary Treasurer of T Enterprises Inc. ,a tea and coffee importer.She contacted Wanda,who carried on business as a wholesaler,to determine if Wanda might be interested in the purchase of the corporation's coffee import business.Wanda expressed an interest in the purchase,and Mary advised Wanda that she would arrange to have the sale of the coffee business approved by the shareholders,as required by the corporation's by-laws.Mary eventually produced a shareholders' resolution authorizing the sale.Later,it was discovered that proper notice of the shareholders' meeting had not been given,and no quorum of shareholders was present at the meeting.
-When Wanda discovers the mistake,she may sue Mary personally as a result of her representation that proper authorization had been given for the sale.
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