The Corporations Act provides that, where a company exercises a power (to enter a contract with a third party) that is prohibited! restricted in the corn pany's constitution, the contract formed between the company and the third party (extemal to the company)... Select one: is invalid, unless the contract is adopted by the company directors is considered a breach of the Corporations Act and the company may face civil and! or criminal penalties is valid and enforceable since a company's constitution (or replaceable rules) only impact the relationship between the company and its members is valid. but only if the company notifies and seeks permission from ASIC immediately is invalid and can be avoided by the company