Question
Inexistent 3000 Ltd (Inexistent 3000) owns and operates 10 cafes in Melbourne. Ariel, Cecilia, Kai, Lila, and Meilin are the directors of Inexistent 3000. Each
Inexistent 3000 Ltd ("Inexistent 3000") owns and operates 10 cafes in Melbourne. Ariel, Cecilia, Kai, Lila, and Meilin are the directors of Inexistent 3000. Each of them owns 20% of the Inexistent 3000 shares.
Inexistent 3000's cafes are very successful and Ariel, Cecilia, Kai, Lila, and Meilin want to expand its business. Kai knows a famous chef, whose name is Martin, and believes that Inexistent 3000 should hire Martin and open a fancy restaurant.Ariel, Cecilia, Kai, Lila, and Meilin think that Inexistent 3000 should offer a very good salary to Martin, because they want Martin to accept the offer. Inexistent 3000 offers $300.000,00 a year to Martin. Martin likes the offer and says that he would accept it if the following change in the company's constitution is made: "Martin will be the chef of the restaurant for at least five years and if he leaves before the fifth year, he is entitled to receive one million dollars". The company's constitution is changed according to Martin's request.
One year later, Martin leaves Inexistent 3000, but he does not receive one million dollars from Inexistent 3000. Martin then sues Inexistent 3000 for breach of the company's constitution. Discuss what a company's constitution is and what statutory contracts it creates under s 140(1) of the Corporations Act. In your discussion, explain whether Martin can enforce the company's constitution in his favour.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started