LAWS4112 Study Guide - Final Guide: Royal British Bank, Apparent Authority, Shareholder Resolution
Document Summary
Companies can contract directly or through an agent. S124 companies have legal capacity to contract as a natural person, with additional powers too: issue shares, grant a floating charge or security interest over a circulating asset. S124(2) a (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s (cid:272)apa(cid:272)it(cid:455) is u(cid:374)affe(cid:272)ted (cid:271)(cid:455) the a(cid:272)t if it is (cid:374)ot i(cid:374) the (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s interest to do that thing. S125(1) a (cid:272)o(cid:373)pa(cid:374)(cid:455)(cid:859)s (cid:272)apa(cid:272)it(cid:455) (cid:373)a(cid:455) (cid:271)e li(cid:373)ited (cid:271)(cid:455) its (cid:272)o(cid:374)stitutio(cid:374). Ho(cid:449)e(cid:448)e(cid:396) if limits are breached then it does not render the contact void, a contract is not invalidated because of inconsistency with an objects clause (s125(2). A company can state their objects and limit contracting powers (s125) S125(1) the constitution may place limits on powers and objects, however acting outside of these limits will not invalidate as against third parties. S125(2) a breach will not render the contract void, however it may be enforced by outsiders against the company.
