Law of Business Associations

Running head: LAW OF BUSINESS ASSOCIATIONS
Law of Business Associations
Name of the Student
Name of the University
Author Note

1LAW OF BUSINESS ASSOCIATIONS
Table of Contents
Question 1........................................................................................................................................2
a....................................................................................................................................................2
Issue.............................................................................................................................................2
Rules............................................................................................................................................2
Application..................................................................................................................................3
Conclusion...................................................................................................................................3
b...................................................................................................................................................3
Issue.............................................................................................................................................3
Rules............................................................................................................................................4
Application..................................................................................................................................4
Conclusion...................................................................................................................................5
Question 2........................................................................................................................................5
Issue.............................................................................................................................................5
Rules............................................................................................................................................6
Application..................................................................................................................................6
Conclusion...................................................................................................................................8
Reference.........................................................................................................................................9

2LAW OF BUSINESS ASSOCIATIONS

3LAW OF BUSINESS ASSOCIATIONS
Question 1
a.
Issue
Can Max able to enforce the clause in the constitution making him the company solicitor?
Rules
The Corporation Act has legislated in the section 136 about the company where it has
right to form the constitution for effective according to the relatable company and every
members of the corporation. The section 9 of the Corporation Act has also legislates the special
resolution where the members of the company like shareholders must present their votes of at
least 75% which should passed such resolution in favor of the shareholders. According to the
case facts the directors of CCP has passed a special resolution for the alteration of the
corporation’s constitution where they inserted a new clause giving the board the right to
expropriate the shareholding of members only less than 10% of the total shares issued (Donner
2016).
Directors are bound on duty towards the shareholder of the company and other members.
The section 181 of the Corporation Act provided the legislations where directors are bound to do
their duties with care and diligence good faith and must not misuse their position. If they
breached the duty of section 181 180 to 183 and 184 under the corporation act therefore the
members of the shareholders of the corporation can take legal action against them (Coffee Jr,
Sale and Henderson 2015).