Assignment task:
Osmosis Records Pty Ltd has a written constitution. Clause 3 of its constitution reads: "The objects of the company are to make, sell, and distribute recorded music in Australia and New Zealand." Clause 4 of its constitution reads: "Activities beyond those specified in clause 3 requires a special resolution of the members of the company in a general meeting." The company has started focusing on more profitable business opportunities in the United States and have entered into several new contracts without member approval. Its shareholders are concerned that the directors are neglecting Australian home-grown talent. Which of the following is correct? Group of answer choices
The US contracts are not invalid merely because it is contrary to an express restriction in the company's constitution, according to section 141 of the Corporations Act.
The US contracts are not invalid merely because it is contrary to an express restriction in the company's constitution, according to section 125 of the Corporations Act.
The US contracts are invalid under the common law doctrine of ultra vires.
The US contracts are invalid because it is contrary to an express restriction in the company's constitution, according to section 125 of the Corporations Act.