Corporations Law

Running head: CORPORATIONS LAW
Corporations Law
Name of the Student
Name of the University
Author Note

1CORPORATIONS LAW
Issue
The issue in this present situation is whether any rights have been conferred upon Tony
under section 140 and under section 232-234 contained in the Corporations Act 2001 (Cth).
Rule
The consequences of a company’s constitution and the replaceable rules are contained in
the provisions under the Corporation Act 2001 (Cth) section 140(1). The constitution of the
company and its replaceable rules can be construed to have the same effect as that of a
contract. Having the same effect as that of a contract, these rules and the constitution binds
the company and its members to the same. The directors, the company secretary and the
company are all bound by the replaceable rules and the constitution of the company. The
members of the company are also treated to be bound by this towards each other by virtue of
the these rules. This binding nature of these rules requires the person abovementioned who
are bound by these rules are required compliance and performance of the applicable rules
contained under these.
A person who is a member of the company does not becomes bound by any subsequent
rule that has been added to the constitution to effect a modification under the Corporation Act
2001 (Cth) section 140(2). However, in case the member has consented in a written form to
the additional rule subsequently added, he will be bound by the same. The subscription of
additional shares are included within the purview of this section. This section also includes
any rules that has been added for the purpose of imposing any additional liability making it
mandatory to contribute to the company’s share capital or any contribution made to the
company in general. This section also waives any restriction that has been additionally
imposed for which the consent of the member in writing has not been availed in relation to
share transfer of the shares he already owns.