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Corporate Constitution. Meaning: e.g., ASX; BHP BillitonCompanies registered before 1 July, 1998 Memorandum of associationArticles of associationForms under the CA: s 134. Replaceable Rules. Meaning: s135 (2)Replaceable
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1. Introduction Meaning and forms of corporate constitution
Replaceable rules
Nature of corporate constitution
The ultra vires doctrine
2. Corporate Constitution Meaning: e.g., ASX; BHP Billiton
Companies registered before 1 July, 1998
Memorandum of association
Articles of association
Forms under the CA: s 134
3. Replaceable Rules Meaning: s135 (2)
Replaceable & mandatory: s135 (1)(b)
Failure to comply: s135(3)
Table of replaceable rules: s141
4. Application of Replaceable Rules Types of companies: s 135 (1)
Each company formed after 1 July 1998: s 135 (1)(a)(i)
Any company formed before 1 July 1998 that repeals its constitution after that day: s 135 (1)(a)(ii)
Limitations for mere use of the replaceable rules
Companies wishing to control their own affairs
Replaceable rules not dealing with every aspect of corporate governance
Companies wishing to bring corporate governance rules into one place
Public companies listed on the ASX must have a constitution: ASX LR 15.11
Not applicable to sole shareholder companies: s 135 (1)(b)(iv); special provisions for such companies: ss198E, 201F & 202C
5. Adoption of Constitution: s136 On registered: s136(1)(a)
After registration by special resolution: s 136(1)(b)
By court order: s 136(1)(b)
Lodgment of special resolution and constitution with ASIC: s 136(5)
6. Contents of Constitution No special requirement except for special types of companies
Special requirements for special companies:
Companies limited by guarantee omitting the word Limited in its name: s 150 (1)
No liability companies: s 112 (2)(b)&(c)
Listed companies having a constitution in consistent with the ASX listing rules: ASX LR 15.11
7. Modification of Constitution By special resolution: s 136(2)
Special resolution (at least 75% of votes by members): s 9
By court order: s 233(1)(b)
Restrictions on modification: s136(3)&(4), e.g.:
Higher majority than 75%
Consent of a specified person
Modification affecting members: s 140(2)
Common law tests:
bona fide for the benefit of the company as a whole: Allen v Gold Reefs of Wes Africa [1900] 1 Ch 656, 671;
Fair in all the circumstances, and for a proper purpose: Gambotto v WCP Ltd (1995) 182 CLR 432
8. Gambotto v WCP Ltd (1995) 182 CLR 432
9. Constitution as Statutory Contract: s 140 (1) Between company & member: s 140 (1)(a)
Hickman v Kent and Romney Marsh Sheep-Breeders Assoc [1915] 1 Ch 881
Between company & each director & company secretary: s 140 (1)(b)
Between members inter se: s 140 (1)(c)
Rayfield v Hands [1958] 2 All ER 194
Re Caratti Holdings Co Pty Ltd (1975) 1 ACLR 87
Not between members & directors & company secretary
Not between the company & outsiders:
Eley v Positive Government Security Life Assurance Co Ltd (1976) 1 Ex D 88
10. Rayfield v Hands [1958] 2 All ER 194
11. Re Caratti Holdings Co Pty Ltd (1975) 1 ACLR 87
12. Eley v Positive Government Security Life Assurance Co Ltd (1876) 1 Ex D 88
13. Ultra Vires Doctrine Meaning: object clause in the constitution: s125 (2)
Abolition of the doctrine of ultra vires
Acts contrary to the objects stated in the constitution not invalid: s125 (2)&(1)
Act by company not in best interests: s 124 (2)
Companies having the capacity of human beings: s 124 (1)
Abolition of doctrine of constructive notice: s 130 (1)
ANZ Executors & Trustee Co Ltd v Qintex Australia Ltd (1990) 8 ACLC 980
14. ANZ Executors & Trustee Co Ltd v Qintex Australia Ltd (1990) 8 ACLC 980