X was appointed managing director of a company; under terms of appointment was stated that X would carry exercise the powers of the company as would be from time to time vested in him by board of directors. Board decided to make X concentrate exclusively on a subsidiary company; X stated that this was repudiation of contract of employment as it was inconsistent with his role as managing director. Held:
· Terms of appointment made it clear that X, as managing director, only had so much power as board might vest in him.
Thus board’s later decision was not breach of this agreement.