The function of a company’s constitution (and any applicable Corporations Act 2001 (Cth) replaceable rules) is to: Select one: a. Govern the internal administration of the company. b. Provide assumptions for third parties to rely on when dealing with the company. c. Ensure that the company is a separate legal entity. d. Give ASIC the right to enforce the Corporations Act against the company.
Question
The function of a company’s constitution (and any applicable Corporations Act 2001 (Cth) replaceable rules) is to:
Select one:
a. Govern the internal administration of the company.
b. Provide assumptions for third parties to rely on when dealing with the company.
c. Ensure that the company is a separate legal entity.
d. Give ASIC the right to enforce the Corporations Act against the company.
Solution
The function of a company’s constitution (and any applicable Corporations Act 2001 (Cth) replaceable rules) is to:
a. Govern the internal administration of the company. This means that the constitution sets out the rules and regulations for how the company is run, including the roles and responsibilities of directors and shareholders, the procedures for meetings and voting, and the rights and obligations of all parties involved.
b. Provide assumptions for third parties to rely on when dealing with the company. This means that the constitution provides a framework for outsiders to understand how the company operates, which can be important for potential investors, creditors, and other stakeholders.
c. Ensure that the company is a separate legal entity. This means that the constitution establishes the company as an independent entity that can enter into contracts, own property, and sue or be sued in its own name.
d. Give ASIC the right to enforce the Corporations Act against the company. This means that the constitution gives the Australian Securities and Investments Commission (ASIC) the authority to enforce the provisions of the Corporations Act 2001 (Cth), which regulates corporate behavior and protects consumers.
Similar Questions
Identify the statutory provision of the Corporations Act, from the following list, which provides that upon registration, a company has the full legal capacity of a natural person: Select one: a. Corporations Act 2001 (Cth) s 148. b. Corporations Act 2001 (Cth) s 95A. c. Corporations Act 2001 (Cth) s 124. d. Corporations Act 2001 (Cth) s 128.
The duty of care and diligence is set out in which ONE of the following provisions of the Corporations Act 2001 (Cth)?Question 2Answera.
The organization establishes set of rules for itself and the individuals andgroups with whom it interacts in the form ofa. Agreementb. Contractsc. Negotiationd. Orientation[2] CO1
A person dealing with a company: Select one: a. Will lose their entitlement to rely on the statutory assumptions set out in s 129 of the Corporations Act 2001 (Cth) if they have actual knowledge that contradicts an assumption. b. Has a right to rely on the statutory assumptions in s 129 of the Corporations Act 2001 (Cth) in all situations. c. Will not be able to enforce the transaction where the agent of the company has been fraudulent or dishonest, even if they were unaware the person they were dealing with had been fraudulent or dishonest. d. Must undertake independent inquiries before entering into a transaction with the company.
This law governs corporations` conduct and stockholders` rights and privileges.a.BP 168b.BP 22c.RA 9262d.RA 11232
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