Tantamount Ltd is an unlisted company with three directors: Alyce, Bob and Caesar. At a recent board meeting the directors passed a resolution that Tantamount Ltd purchase $3,000,000 worth of trading stock from Morris Pty Ltd. Morris Pty Ltd's sole director and shareholder is Betty, Bob's wife. The majority of Tantamount Ltd's shareholders are not happy with the directors' decision and they wish to insert a clause into TantamountLtd's constitution that all trading stock must be purchased from O' Keefe Ltd.

Required:

(a) The Applying the provisions of the Corporations Act 2001 (Cth), advise Bob and the other directors of Tantamount Ltd of the procedures they are required to follow at the board meeting when considering the contract with Morris Pty LTd.

Steps 1 and 2: 4 Marks.

Steps 3 and 4: 3 Marks.