Corporate Law: Constitution, Amendments and Shareholders' Rights

Corporate Law

Executive Summary
The constitution of a company governs its operations, and it also creates the relationship
between the shareholders, directors and the company. The objective of establishment of
the constitution is to ensure that the corporation focuses on the interest of its members
while at the same time directors should form business strategies to achieve the corporate
goals of the company. The constitution of the company is not rigid, and it can be amended
by passing a special resolution in the company. The rights of minority shareholders are not
protected based on the requirements given under the Corporations Act. Furthermore, there
are various restrictions imposed on the majority shareholders regarding amendment in the
constitution in order to ensure that they are not able to vary the rights of other members
due to which they face financial consequences. Thus, shareholders should use their powers
for proper purposes and avoid causing harm to the company and minority shareholders or
gaining a personal advantage.
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Table of Contents
Part 1........................................................................................................................................ 3
Part 2........................................................................................................................................ 4
Part 3........................................................................................................................................ 5
References................................................................................................................................8
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