Legal implications under the corporations act


Question: Lee Ltd has a clause in its constitution which states that the company's business is to develop residential properties. The directors of Lee Ltd wishes to sign a contract to develop commercial properties with Jason, a property developer. The members of Lee Ltd have expressed their concern at this development and want the directors to comply with the company's constitution as they note that the development of commercial properties is outside the objects of the company's constitution. Required: Advise the directors and members of Lee Ltd and Jason of the legal implications under the Corporations Act and case law of signing a contract to develop commercial properties and what other options might be available under the law.

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Business Law and Ethics: Legal implications under the corporations act
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