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 company's constitution, the contract formed between the company and the third party (external 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