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:

(b) With reference to case law and relevant sections of the Corporations Act 2001 (Cth) please discuss whether it is proper business for the members of Tantamount Pty Ltd to insert such a clause into the company's constitution.

Steps 1 and 2: 4Marks.

Steps 3 and 4: 3 Marks.