Thapelo and Mmusi form a company, TM Developments, for the purpose of developing a residential complex in Gaborone. Thapelo contributes half of the capital but plays no further active role in the business. Thapelo and Mmusi are both directors of the company. Each one of them nominates another director bringing the number of directors on the board to four.Although the constitution of the company provides that the directors may appoint one of their number as managing director, the four directors of TM Developments do not appoint a managing director. Instead, the directors leave the day-to-day management of the company to Mmusi.Mmusi engaged Horizon Architects to prepare plans for the residential development. Once the plans were completed, Horizon Architects demanded payment from TM Developments. TM Developments declined to pay Horizon Architects claiming that Mmusi had no authority to engage Horizon Architects.Horizon Architects approaches you for advice on TM Developments’ possible liability for the work done.Required:Advise Horizon Architects. (10 marks)
