add more relevant law and law sections. Also add relevant case law.

Issue:

Is Oceanview Pty Ltd bound by the mortgage Mia signed with Skyline Finance without acquiring the boards permission, in violation of the company's constitution.

Law:

S 124 is the power of a company to fulfill documents, S 125 requires the company's common seal for requirements. The company's constitution is a obligatory rule (Lee v Chou Wen Hsien (1984) AC 809).

Application:

In s 124 of the corporations Act, with the common seal or without it the power of a company to fulfill documents could be applied, while the implementation adheres to the company's governing principles. The company's governing principles, serves as an agreement between the company and members (Lee v Chou Wen Hsien), requires board approval for issuing securities surpassing one million dollars. Mia has breached the company's governing principles by individually signing the mortgage and not getting consent from the board, which expresses doubts relating to the legitimacy of the mortgage. The company could legally be obligated by the acts of Mia as the managing director.

Conclusion:

The significance of corporate constitutions is usually ratified by the courts. Oceanview Pty Ltd can encounter the legitimacy of the mortgage that has been signed by Mia as the company's governing principals have been breached.