The constitution binds all company employees

The constitution does not create contractual rights for employees

The replaceable rules override the constitution

Eley’s claim is valid since he is a former shareholder

Only if the shareholders approve it at a general meeting

Only if ASIC provides written consent

Yes, a company constitution can modify director voting rules

No, director voting rules are always governed by the replaceable rules

It is automatically void under Australian law

Shareholders cannot enter contracts with each other

Only directors can enter into binding contracts

It is legally binding if it is incorporated into the company constitution

Director voting procedures

The appointment and removal of directors

Shareholder rights to dividends

The company’s business name

If the company skips dividend payments, they accumulate and must be paid later

If dividends are not paid, preference shareholders lose their rights permanently

These shares convert into ordinary shares after a certain period

The company must buy back the shares within five years

Through regular interest payments

By receiving dividends or selling her shares at a profit

By demanding repayment of the principal

By forcing the company to issue bonds

Radahn gains full ownership of the company

Godrick is personally liable for the remaining balance

The factory may be seized and sold to repay the debt

The loan is automatically forgiven

He raises capital without losing voting control

Investors cannot sell their shares

He never has to pay dividends

He must repay the shares like a loan

Redeemable ordinary shares

Cumulative preference shares

Debt-backed preference shares

Convertible preference shares

Sarah attends a recreational library book-reading group, occassional selling her books to other members. 

Mary and Joe collect donations from university students to help the homeless. 

Ash and Gary collect rare Pokemon cards and regularly sell the cards online and in card exhibitions.