Elizabeth is a major shareholder in New-Era Ltd. Elizabeth has noted that New Era Ltd maintains the old-fashioned 'memorandum of association' as part of its constitution. The objects clause in the

constitution, as drafted, limits the objects of the company to the development, manufacture and sale of domestic electronic devices.

Rachel, an employee engineer at New Era, has been developing a number of clever applications and associated software for mobile devices.

Elizabeth believes that the research work that Rachel is doing (and future technology which may be developed as the full implications of Rachel's work are realised) may have spin-offs into a number of

related areas utilising the software and mobile applications.

Elizabeth has spotted an opportunity that may allow the company to enter into a contract with like-minded companies for the development of state-of-the-art mobile applications. She is however concerned

that the narrowness of the 'memorandum' may hamper the company's ability to move into the emerging lucrative area and also the development and commercial exploitation of the mobile applications

which the company's ongoing research may uncover may not be pursued lawfully.

When Elizabeth raised these concerns with the company's other shareholders, they told her that they had been advised by the lawyers that this was the standard form for their companies, and that there

was no cause for concern. Elizabeth is not convinced.

Question:

With the aid of relevant provisions of the Corporations Act 2001 (Cth), use the IRAC legal problem-solving approach to advise Elizabeth of the company's position regarding any new contracts that it may enter

in connection with the development of mobile applications in light of the objects clause and also explain how the replaceable rules may be of use to the company in the future.