Directors have the management power in a company. They can sign any contract for the benefit of the company going beyond the object clause of a companys constitution, but which is the principle provided in the Corporations Act (Cth) 2001 that does not allow them to do so frequently?

1. Members can remove the directors (s 203C and D).
2. Directors can hold members meeting (s 249).
3. Constitution creates a legally binding contract both for directors and members (s 140).
4. Members can change the constitution by passing a special resolution (s 136).