52. Algol and her brother Altair have operated a successful tourism and souvenir business in Tasmania for a number of years. They incorporated that business under the name Beacon Fun Stuff Pty Ltd in 2019. At the beginning of 2020 Algol was approached by a company that sells souvenirs across Victoria, New South Wales and South Australia.They encouraged Algol and Altair to expand their souvenir manufacturing operations to enable sales of Australian souvenirs across these three states.

Altair and Algol have agreed to the expansion and are considering incorporating another company. Currently Beacon Fun Stuff Pty Ltd does not have its own constitution but Altair feels that should they incorporate another company he and his sister should become clearer on the key benefits of operating a company and take some advice on if they should consider adopting a constitution instead of relying on the replaceable rules contained in the Corporations Act 2001 (Cth)

Required: Please advise Algol and Altair on:

a. the key benefits of operating a company rather than a partnership;

b. the role of the replaceable rules;

c. the role of a constitution for a company; and

d. the ways that a constitution can be adopted and the major limits on the right to alter a constitution once it has been established.