Question
Pleas follow this format of an answer Issue: What is the question that is being asked? You need to identify the correct issue/s. If there
Pleas follow this format of an answer
Issue: What is the question that is being asked? You need to identify the correct issue/s. If there is more than one issue in a question, each issue needs to be responded to separately. Relevant Laws: Mention relevant cases and sections and explain them. For sections, you need to summarise the section's content. You do not copy the section word for word. For cases, you do not need to mention the facts of the case. You need to mention the judgment. It is important to have a clear section of the law. You do not only mention the name of the case or the number of the section without any explanation Application: You will apply the law to the facts of the problem. You need to use the facts of the problem and check if they fulfil the requirements of the law. Conclusion: What is the outcome? This part is only one line and is the answer to the question raised in the issue.
Question
GreenCo Ltd (GreenCo) has been established as a collaborative effort between EarthCare Ltd (EarthCare) (a non-profit organisation dedicated to promoting sustainable living and environmental awareness) and RenewTech Pty Ltd (which specialises in electronic waste recycling). EarthCare and RenewTech become GreenCo's two shareholders. GreenCo's constitution limits its operations to the production of eco-friendly electronics and "activities that reasonably support such objectives." GreenCo enters into a contract to provide a plastic and electronics recycling service to the Municipality of Greendale. EarthCare had previously declined to engage with this Municipality due to its poor environmental track record. This newfound venture prompts questions within EarthCare. As a shareholder in GreenCo, EarthCare's members are apprehensive about the alignment of this contract with their organisation's mission and principles.
Can EarthCare, as a shareholder of GreenCo, challenge the validity of the contract on the ground of a breach of GreenCo's constitution? Explain your answer by referring to legislation and case law where relevant.
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