Company Law Discussion 2022

Running head: COMPANY LAW
COMPANY LAW
Name of Student
Name of University
Author Note

COMPANY LAW1
Table of Contents
Issue.................................................................................................................................................2
Rule..................................................................................................................................................2
Application......................................................................................................................................3

COMPANY LAW2
Issue
The main issue in the case is whether Ultimate Computer Programs and the City of
Sydney can enforce contracts against Events R Us Ltd.
Rule
As per the provisions of the section 125 (2) of the Corporations Act 2001 the objects of a
company might be set up by the constitution of a company, however the act of the company
could not be held invalid just because the act is in contradiction to any of the objects set in the
constitution of the company.
As per section 126 of the Corporations Act 2001 under the express or implied authority
of the company or on behalf of the company and individual can be exercising the company’s
power for making, varying, ratifying or discharging any contract.
As per the provisions of section 140 of the Corporations Act 2001the constitution of the
company and any other replaceable rules applying to the company would be effective as a
contract to all the members, directors and the company secretary.
By the judgment of the case News Ltd v Australian Rugby Football League Ltd [1996] it
is seen that any act in contradiction to any prohibition, restriction or statement of object included
in the constitution of the company would not be invalidated.
However in the judgment of the case ANZ Executors & Trustee Co Ltd v Qintex Australia
Ltd [1990] it was held by the judges that the any breach of the constitution of the company would
affect the powers of the director and the shareholders in the company.