Sally and Tom together own 92.5% of the shares in White Knight Telecommunications Pty Ltd (White Knight). The remaining 7.5% of shares is owned by Peter.

For commercial reasons, Sally and Tom are keen to obtain all of the shares in White Knight. They put forward a resolution which will alter the constitution allowing them to compulsorily acquire the remaining 7.5 % of the shares in White Knight. Sally and Tom do not bother to obtain a valuation of the shares but offer $500 to Peter for his shares.

The resolution is passed. Peter is very unhappy.

Advise Peter as to any general law limitations on the power of the majority to alter the company constitution. (Do not discuss any statutory remedies here)