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QQESTIQN FQUR Spears Ltd has a constitution that does not repeal any of the replaceable rules of the CA but does provide for two additional

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QQESTIQN FQUR Spears Ltd has a constitution that does not repeal any of the replaceable rules of the CA but does provide for two additional matters: (i) an objects clause provides that \"the companys activities are restricted to the recording and publishing of music\". (ii) another clause provides: \"Jackson White is to be the company's Senior Music Producer at a salary of $200,000 pa\". The directors of Spears Ltd have decided to ignore the constitution and to carry out the following actions: - to execute a contract with Little Brother Pty Ltd for the release of films on DVD - to insert into the company's constitution a clause so that each member will have to purchase an additional 1,000 shares at $3,000 to pay for the new business venture; - to appoint Britney Lance as Senior Music Producer. Required; (a) Spears Ltd loses money under its agreement with Little Brother Pty Ltd and refuses to pay it a sum owing, arguing that it has no legal capacity to release films and that Little Brother legally would have known about its limitations from the Spears Ltd constitution. Advise Little Brother Pty Ltd. (b) Can the directors amend the constitution? What is the proper process? If the amendment is correctly passed, would the members have to pay for the additional shares? (c) Jackson White writes to Spears Ltd demanding his job back but is told he has no contract. He buys some shares in Spears Ltd and writes again, this time claiming he has a contract. Advise Spears Ltd

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