Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. directors have the management power in a company.

Directors have the management power in a company. They can sign any contract for the...

70.2K

Verified Solution

Question

Accounting

Directors have the management power in a company. They can sign any contract for the benefit of the company going beyond the object clause of a companys constitution, but which is the principle provided in the Corporations Act (Cth) 2001 that does not allow them to do so frequently?

  1. Members can remove the directors (s 203C and D).
  2. Directors can hold members meeting (s 249).
  3. Constitution creates a legally binding contract both for directors and members (s 140).
  4. Members can change the constitution by passing a special resolution (s 136).

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students