Macko v Commonwealth Securities Limited

The case of *Macko v Commonwealth Securities Limited* concerned a dispute where the applicant, Macko, alleged loss arising from a transaction with an individual who represented themselves as having authority to bind Commonwealth Securities Limited (the respondent). Macko claimed this representation constituted misleading or deceptive conduct.

The central legal issue before the court was whether Commonwealth Securities Limited could be held liable for the actions of the individual who purported to act with ostensible authority on its behalf, particularly given the company's lack of assets. The court was required to determine the extent to which a company can be bound by the apparent authority of its representatives and the consequences of such representations when the representee suffers loss.

The court's reasoning focused on the principles of ostensible authority. It was determined that if a company represents, by its conduct or otherwise, that an individual has authority to act on its behalf, and a third party reasonably relies on that representation to their detriment, the company may be bound by the individual's actions, even if that individual lacked actual authority. This principle aims to protect innocent third parties who rely on the apparent authority of company representatives. The court found that the respondent was bound by the representations made, and therefore liable for the loss suffered by the applicant.

The appeal was dismissed with costs.