Easily Replace Number Fields in the Company Constitution

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How to Replace Number Fields in the Company Constitution

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[Music] hello everybody my name is michael quinn im one of the directors and co-founder of the queen group this week on quintessential tv we will be discussing how a company constitution differs from replaceable rules a company is internally managed and governed by what are known as replaceable rules or a constitution or alternatively a combination of both whichever governance a company decides upon company directors and shareholders should understand the rules which govern their company while having a company constitution has the benefit of covering a broader range of matters the replaceable rules are effortless and efficient so what happens if the company doesnt have a constitution if the company is registered after the 1st of july 1998 the replaceable rules will automatically apply if the company does not have a constitution the only exception to this is if your company has a single shareholder who is also the sole director under the corporations act there are 39 replaceable rules

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What is Section 120 of the Corporations Act?

Members, directors and company secretary of a company (1) A person becomes a member, director or company secretary of a company on registration if the person is specified in the application with their consent as a proposed member, director or company secretary of the company.

What is Section 140 1 )( A Corporations Act?

Company constitutions are given contractual force by section 140 (1) of the Corporations Act. That section provides that a constitution has the effect of a contract between the company and each member, the company and each director and secretary and between each member and each other member.

What are the replaceable rules in the Corporations Act?

Replaceable rules are in the Corporations Act and are a basic guide for managing your company. If youre a proprietary company, they can be an easy way to manage your companys governance. Replaceable rules do not apply to a proprietary company if the same person is the sole director as well as the sole shareholder.

What is Section 136 2 of the Corporations Act 2001?

Section 136 (2) of the Corporations Act provides that a company may modify or repeal its Constitution or a provision in its Constitution by special resolution. (b) that has been passed by at least 75% of the votes cast by members entitled to vote on the resolution.

What is Section 140 of the Corporation Act?

Section 140(1)(b) of the Corporations Act states that [a] companys constitution (if any) and any replaceable rules that apply to the company have effect as a contract between the company and each director and company secretary.

What is Section 141 of Corporations Act?

Section 141 of the Act consists of the replaceable rules that act as a basic guide to help company owners better manage their company. There are a total of 39 replaceable rules in the Act encompassing issues concerning directors, conduct of board meetings, company secretary, and shares and dividends.

What is the purpose of the contractual effect of section 140?

under which each person agrees to observe and perform the constitution and rules so far as they apply to that person. (ii) to insert proportional takeover approval provisions into the companys constitution.

How can a company amend its articles?

Hold a board meeting, resolve to convene a General Meeting and approve a circular to send to the shareholders. The circular sets out the reasons that the articles need to be changed and should summarise the main provisions/changes to be made.

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